Why 95% of the forex traders lose their money when they first trading?

As I mentioned in the earlier article forex trading can be done with ease by anyone without a huge investment, but there is significant amount of risks involved in it. It’s common in every aspect of any business, the more risk you take, the more you earn. But make sure that you take a more calculated risk so that you don’t become one among those failed 95% debut traders.

The first advice that I would give is that don’t get carried away by the attractive advertisements in the internet. “90% accuracy, earn 20 pipes a day, earn regular income from home” Perhaps you might have come across some of them. Most of these advertisements are made by cleaver salesmen and not by good brokers. Once you come across this illusion you may have to consider these facts.



Patience is a key index in foreign exchange. If you are a nervous and impatient person, I’m sorry that you are not a suitable person for this kind of trade. Sense of anxiousness which will overrule your best judgment, desire for revenge etc will lead you down the lane for a crash. Experienced traders don’t get carried away by short term volatility and they wait in anticipating bigger profits.

People who think themselves as smart fail in forex trading in most occasions. Cleaver people over elaborate their trading with much complexity. The golden rule is to keep your trading as simple as possible as forex is 80% mindset and 20% method. While trading, don’t hesitate to grasp the fact you were wrong, you took the wrong decision, because it’s the market that is going to rule and not your decision. So don’t argue with the market price. Once you know you were wrong regarding the anticipation of the market price be gentle enough to rectify it to avoid further losses rather than being stubborn in your decision.

If you follow an expert’s advice and don’t do your homework to learn the logic behind their method, you are more unlikely to follow their method when you hit a losing streak. Always make sure you stick on to a systematic method, or else you get lost and hit a dead end. Internet bears all the details you need, so make sure you know what you are doing and learn about the market before you enter it, which assures you confidence in your decisions. Forex markets are risky, but approach them with discipline and some effort to succeed in long terms