Top reasons why people fail in the Forex Business?

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Top reasons why people fail in the Forex
Business?

• TheForexSecret.com

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Introduction

• Forex market is the biggest market in the world
  and it is about 5 trillion dollar market a day.
  Although it is a large market and there are many
  traders, only a few traders are successful. You
  will find the same reasons which can be
  attributed to the failure of many traders.
•  
• On the other hand, investors fail in different
  asset classes. According to the market, it takes
  a small amount of margin to trade currency but
  traders expect greater investment return than the
  market can offer or take greater risk in trading
  than actually, they should have.

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• 1. Earning quick profits vs. losing money
• 2. People focus on quick money not on skills
• 3. Emotion dominates the traders
• 4. People dont bother about risk management
• 5. People tend to use a bigger lot size
• 6. Not having proper skills and Strategy
• 7. The tendency of being Investors than traders
• 8. Not Giving enough time
• 9. People follow other peoples footsteps
• 10. The truth about Demo trading Unrealistic
  Expectations

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1. Earning quick profits vs. losing money .
01.
People tend to earn quick profits. Subconsciously
we are very used to getting what we want very
quickly but forex takes hard work and also it is
externally marketed not so much as used to be.
It so happens that novice might win with high
leverage and a person with experience and
strategy might lose the game for a while. The
novice might think he is good but when he incur a
huge loss suddenly he realizes how little
control he had and that scares people and they
try to move to another avenue.

• And this is the subtitle that makes it
  comprehensible

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2. People focus on quick money not on skills

• If you have skills, money becomes less important
  it automatically follows you but people always
  reverse it.
• Of course, we should have the motivation for
  money. According to Management Guru, Frederick
  Taylor money is the main motivation but Investors
  should have less focus on money and more
  curiosity on learning. An investor should have a
  curiosity and passion for learning the art of
  trading.

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3. Emotion dominates the traders

• 90 of traders lose money because they allow
  their emotions to control their trading. When
  people start winning money, when they are trading
  in a live account, they try to manually adjust
  their target TAKE PROFIT and STOP LOSS then the
  whole risk to reward ratio becomes imbalanced.

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4. People dont bother about risk management

• The reason why most of the traders get killed in
  the market because they just do not bother to
  manage their risk. The only difference between
  trading and gambling is how successfully we can
  manage the risk.
•  
• Gamblers do not bother about analysis, they
  (Gamblers) just leave it to their fate. On the
  other hand, Forex traders do a lot of homework
  before they place their trade in the market. If
  you manage to gain in the forex market by random
  gambling, in the long run, it is pretty sure that
  you are going to run into debt.
•  
• So, people who have a real interest in research
  and have good analytical ability can take forex
  trading as a part-time or full-time profession.

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5. People tend to use a bigger lot size
Often people think if we have too small lot
sizes, it will take us a long time to earn money
so they increase their lot size but when the plan
goes against them they incur lose then they again
increase their lot size so that they can take
revenge on the market and try to earn back what
they lost which means they are controlled by
their emotions. So if you want to become among
the top 10 businessmen it is not so much having a
good system but to manage your risk.
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6. Not having proper skills and Strategy

• Most of the time people make their decision after
  they have lost their money. You will find the
  worst result because you are making the decision
  emotionally.
•  
•  
• If you have not decided when you will move your
  stops, how you are going to move your stop before
  the trade gets placed.
•  
• You should not be taking the chance afterward. If
  you do not have a plan then the answer is simple
  just get out because when you follow a plan only
  then it pays off.

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7. The tendency of being Investors than traders

• Investors put their money in real-estate
  business, stocks, and currency markets assuming
  that the value will always increase over the
  period.
• So when the value of the investment increases the
  person brings more money in the business. People
  who follow other peoples footsteps and bring
  their precious savings in the market do not have
  a plan when the value of their investment
  decreases.
• They usually keep holding their investment hoping
  one day the value will reverse automatically.
  This kind of investor makes a profit in a bull
  market but fails in bear markets. This kind of
  investor fears the bear market and they are
  unable to prepare themselves in their Rainey
  days.

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8. Not giving enough time

• People are always in a hurry they dont want to
  give enough time to learn the skills of trade
  because it is a tricky challenging business, you
  have to make business over a long period.
• People lose money again and again and at some
  point give up which creates a negative impression
  about Forex Trading.
• 90 of people lose money because they follow
  other people, they believe in gossip and rumors
  but earning money takes lots of effort,
  perseverance, and passion.
• You have to give your time and focus on it. If
  you cannot do that just find trustworthy trades
  and put your money there and be a silent partner
  of the business.

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9. People follow other peoples footsteps
People tend to follow other peoples footsteps.
Most of the time people do not analyze or
triangulate the information they hear. People
having little knowledge about the market invest
in the currency market with all their savings and
when the price fall they cannot survive. To
take revenge on the market they take bigger lot
size and leverage which is even more
dangerous. Without proper strategy investment
doesnt pay off, this simple formula most of the
people do not try to understand.



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10. The truth about Demo trading Unrealistic
Expectations

• No matter what people say, Forex is not a
  shortcut of getting quick rich. Becoming adroit
  enough to amass profit is not a quick race, it
  takes time.
• Success takes back to back efforts to manage the
  strategy but in demo trading, people take bigger
  lot size and also takes high leverage because
  there is no risk involved but when they go in a
  real trading huge amount of pressure works.
• On the other hand, emotion gets involved.
  Another important thing is in the demo account
  people use large capital but in real life, their
  amount is very small which provides them no
  realistic idea of trade.

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Conclusion

• So in Forex trading, it is very important to keep
  all these things in mind. Do not let your emotion
  to trade. Follow the trends, follow the analysis.
  Try to do realistic trading in the demo account.
  What I mean is some people use millions of
  dollars in demo account but the real account,
  until you have only a few hundred dollars. If you
  keep doing this you cannot learn the art of
  trading. Talk to your mentors. Read and make a
  lot of research to grow your skills.