The Main reason Why Forex Fraders Fails.

[asiaforexmentor]

Forex Trading Psychology – The Main reason Why Forex Traders Fail

Forex Trading Psychology

There are many answers in the market to this question: Why do most forex traders fail?

- Some blame it on over trading

- Some blame it on emotions

- Some blame it on revenge mentality

- Some blame it on impulse

- Some blame it on the market

- Some blame it on bad luck

- Some blame it on poor entry

- Some blame it on not taking profits

- etc etc etc

As you can see, there will be tons and tons of reasons that explains why forex traders fail.

This is all that relates to forex trading psychology.

But i strongly believe that it all leads to one answer.

MONEY

 

Forex Trading Psychology – The Main reason Why Forex Traders Fail

Yes, the answer is MONEY.

The main reason why most traders fail is because of money.

No doubt that we all trade forex for the money.

But it will be the money that kills us in forex.

Forex trading psychology – Let me explain.

To us our money that we put in our forex capital is our hard earn money. Who isn’t?

when we have that mentality that we CANNOT lose the money in our capital.

And as all man are greedy. We want to multiply our capital FAST.

That’s when we lose it all.

To succeed in forex trading, we have to FORGET that there’s money involved.

You have to learn to trade not because of the money. But because you like forex trading and you are passionate about it.

You have to learn to trade right and not trade for the money.

When you trade right and forget about the money, the money will come naturally.

But when you are too focused on the money, all your emotions will trigger.

You will get into impulse trades, probably because you made a lost on the last trade and you want your money back.

Or because you look at the trade and you are so confident about it, you GAMBLED your whole account size on that trade. and to lose it all.

Or because you want to feel good and look good, and you think that you are able to double your account in a week. So you take trades that are way beyond your money management risk %.

Or you made a series of losses, and you think that if you increase your risk percentage on this particular trade, you will make back your losses.

And the list goes on…

 

FOREX TRADING PSYCHOLOGY – The Main reason Why Forex Traders Fail

All the above reasons leads to the main answer. MONEY.

If we are not trading for the money, but if we just want to focus on mastering our trading and trading it right.

There will no longer be any emotions in place.

I highly recommend traders to forget about the money in forex.

Trade with your forex trading system and stick to it with discipline. Focus on trading right.

It is even better if you can cover up the money part on your forex broker screen. Ignore how much has your account size grown or how much have you lose.

When you are able to do that, you will then see the big picture and you will be more analytical on your forex trades.

So the next time someone ask you on – what is the main reason forex traders fail.

You know your answer: MONEY

This is Forex Trading Psychology at its fullest!

This is the main reason why most traders fail, At Asia Forex Mentor, we teach not only about the entire system for traders to be consistently profitable, we also focus on forex trading psychology. Check out our AFM winning Price Action Forex Course where i teach you the exact FULL Forex Trading System that i personally use.

See you on the other side my friend,

Asia Forex Mentor

Ezekiel Chew

Asia #1 Forex Mentor

[yogeshwartyagi]

I agree to be successful in forex trading one has to trade with discipline

and also it is important to keep sentiments away as these will act as obstacles in taking right decisions.

If you really " FORGET that there’s money involved" you sure can obey your strategy without any alteration and that i am sure will result in more successful trades.

[adnan007]

One of the basic reason why forex traders fail is the fact that the traders dont have a well set money management strategy to deal will. As per my views, money management is the most important part of forex trading and should be handled wisely to keep earning through forex.

[budado]

One of the basic reason why forex traders fail is the fact that the traders dont have a well set money management strategy to deal will. As per my views, money management is the most important part of forex trading and should be handled wisely to keep earning through forex.

I agree. One is money management. Two is the use of indicators, three patience. that is the most important in forex trading. If you have money managements skills you have good tools, but if you don't have patience you end up fooling around and make a loss. Because in forex trading what you need is patience. that is the hardest skills to learn.

[yogeshwartyagi]

This is right that one should be good in capital management and risk management to succeed in forex trading, other think you should not be scared to book losses as they are often in forex, those brave enough to let trigger stop loss admitting they were wrong in predicting stay longer on terminal.

[senger]

The main reason behind the loss or failure of many of the faithful to Forex traders because Il inexperience and lack of education and also due to the greed in a for more profits

[riddick09]

It seems that the reasons given have the major reason which is money. Yes, it seems that everyone failed because of it sometimes of emotions. That is why others when making analysis they are of the amount not the money. Which is good i think to follow and set aside money when trading.

[omostar]

Basically the number one reason why even top traders fail is greed. And really you can't blame anyone so much for that becauseit is part of human nature to always want more.Second reason is lack of adequate knowledge. So many people just hurriedly get into trading after hearing that they can make loads of cash from that market without having been probably grounded in the most important aspects of forex trading such as money management etc.

[pinoycity]

I believe that the main reason why traders fail is the lack of knowledge in forex. You can still win a trade even if you are greedy, impatient, hopeless, as long as you know a lot about forex. But you will always be lost when you trade just for the sake of having an experience.

[monyitomon]

Yes, perhaps it's because lacks of knowledge that's why many beginners fails in Forex trading. When we know a lot about Forex then there is a much possibiliy for you to earn. It's all about the knowledge and skills to be successful in Forex trading.

[pinoycity]

And as all man are greedy. We want to multiply our capital FAST.

 

That’s when we lose it all.

 

I think, we should change this and say that when a trader becomes "very greedy", that is when he/she loses all the money. For sure, there is some amount of greediness in all traders. Some are just enough while some may have tons of it.

[riddick09]

Well simple greediness might become to have very greedy. So for sure any level of greediness in forex trading. Not only the highest level but all of it. For sure we will have losses even with less greed in forex trading.

[rexway]

Greedyness should be emphazis here,greedy is one of the reason why many traders fail,some trader want to be rich overnight with this kind of psycological thought they do endup in lost and complaining that no profit is in forex ,but with Deciplin one can make a good sucess as a fx trader

[monyitomon]

Yes, it is a human nature that we want everything to be fast and especially a money involve and we as human wants to be in profit in a short period of time. Too much greediness could lead to losses.

[pinoycity]

But wouldn't a trader feels bad when he misses on some opportunities to earn bigger profit? In one trade, I would have only earned 20 pips if I stopped at that level. But I persisted seeing that there is still chance of earning more, even if at some point the earnings dipped below 20 pips.

[rexway]

I dont think many people loos in forex because of inexperience or whatever because befor anyone start to trade forex he must have aquierd the basic skill invove in it.

[pinoycity]

But it is hard to trade with only basic skills in your hands. You need to have more than that, as far as I am concerned. You may need to study the charts more and see how they react when news come. I think, this is a more advance skills.

[valexer]

I believe that one of the major reason why a forex trader fails is lack of knowledge. Insufficient knowledge about forex will taked to succesive loses and will be very difficult to get up and get your money back.

[pinoycity]

Sometimes, even if you have the right skills you will still fail. This is because you might be lacking the right amount of confidence in yourself. You might know a lot but if you are afraid to trade, your knowledge will not have an effect.

[stezz]

thanks for this thread

since i'm newbie in forex thing it very useful for me

i'have loss 90 $ in fist 2 week i'm trading

i hope didn't do same mistakes againt

[pinoycity]

At the end of the day, what is important is that you enjoy trading. If you do, trading will become like play to you and not a job. You will take forex seriously but it will not stress you out because you enjoy what you are doing.

[stezz]

At the end of the day, what is important is that you enjoy trading. If you do, trading will become like play to you and not a job. You will take forex seriously but it will not stress you out because you enjoy what you are doing.

 

i agree with you

but if people keep loss i bet they cant enjoy it

it just make them depression

[pinoycity]

 

i agree with you

but if people keep loss i bet they cant enjoy it

it just make them depression

 

Indeed, it can make a person feel depressed if he/she will experience lost of losses. This is why it is always being suggested that you try forex trading with a demo account first. At least, if you will experience losses, it will not hurt much because you will just lose play money.

[riddick09]

 

i agree with you

but if people keep loss i bet they cant enjoy it

it just make them depression

Just keep in mind to control our emotions. And expect of possibilities of losses but then still try that we need also to have profits and not always think negative things that makes our emotions negative too. I don't believe we can't control emotions when we trade try to trade using bonus from forums and you will know what I mean.

[pepy]

why? i think it is because of the member who cannot control their emotion, that is right from what i find many member who suffer loss sometimes cannot control their emotion just like the member who already have a lot of profit, without make further analyze. they just jump into trading.