The Main reason Why Forex Fraders fails.

Share your favorite articles, read about Forex trading.

The Main reason Why Forex Fraders fails.

Postby asiaforexmentor » Tue Sep 06, 2011 3:58 am

Forex Trading Psychology – The Main reason Why Forex Fraders 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 Fraders 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 Fraders 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
Get the Full Free Price Action Forex Strategies, Visit http://www.asiaforexmentor.com
User avatar
asiaforexmentor
 
Posts: 116
Joined: Thu Mar 03, 2011 12:34 am

Re: The Main reason Why Forex Fraders fails.

Postby shona123 » Thu Sep 08, 2011 2:32 am

In the vast majority of cases the primary reason new entrants into this business fail is because of their excessively high expectations & poor preparation.

Inferior planning, lack of adequate training, poor or non-existant discipline & patience + weak & untested strategy implementation account for the high failure rate.

Money has very little to do with it. The only reason money is blamed is because these inexperienced & ill prepared new entrants have absolutely no concept of trade management or bet size boundaries. They're under capitalized & in most cases, over-leveraged, but again that comes down to a lack of adequate training & preparation.
User avatar
shona123
 
Posts: 64
Joined: Tue Nov 10, 2009 3:54 pm

Re: The Main reason Why Forex Fraders fails.

Postby HarriFSR » Mon Sep 19, 2011 4:38 pm

shona123 wrote:In the vast majority of cases the primary reason new entrants into this business fail is because of their excessively high expectations & poor preparation.

Inferior planning, lack of adequate training, poor or non-existant discipline & patience + weak & untested strategy implementation account for the high failure rate.

Money has very little to do with it. The only reason money is blamed is because these inexperienced & ill prepared new entrants have absolutely no concept of trade management or bet size boundaries. They're under capitalized & in most cases, over-leveraged, but again that comes down to a lack of adequate training & preparation.

Hello shona123

Am I poorly prepared? Probably. Do I have high expectations? I don't know if they are high or not but I know what I would like to achieve in Forex GBP30-40,000 pa, maybe less. How much real money do I have to put in (capitalization)? Maybe GBP30,000, but I am just too scared to risk that much at the level I'm at (NEWB). I dont believe in high leverage. But my issue is lack of real training. I feel as if I'm floundering in amongst the sharks that offer to help you while rapidly divesting you of your money, or I'm swimming in a pack of people in a similar situation except everybody seems to know more than me.

So can I ask: what expectations *should* we have? How did *you* prepare? Do you trade forex for a living? How much capital did you put in at the start? Ho much leverage do you use? How do you mange your trades? Sorry, did you say "bet size boundary"? That sounds a litle bit like gambling to me, but hey maybe my approach is wrong.... so how should we do it?
HarriFSR
 
Posts: 3
Joined: Sat Jun 18, 2011 2:39 pm

Re: The Main reason Why Forex Fraders fails.

Postby asiaforexmentor » Mon Nov 05, 2012 6:41 am

A complete professional forex trading system that even newbies can apply instantly.

Asia Forex Mentor forex course is now FREE! www.asiaforexmentor.com
Get the Full Free Price Action Forex Strategies, Visit http://www.asiaforexmentor.com
User avatar
asiaforexmentor
 
Posts: 116
Joined: Thu Mar 03, 2011 12:34 am


Return to Forex articles, tips, advice



cron