Many factors determine whether a trader will be profitable or not. Some of the most common factors include discipline, effective strategies, and risk management. Many traders do not have one or more of these factors, and this is why most fail in forex.
I have noticed more and more beginners signing up on other forums. It's good that there is a lot of interest in trading, but I can't help but assume that many of them are trying to rush into it without the knowledge that comes with it. I've also seen a lot of posts saying that they are trying to make money quickly, which never works in this market without the proper knowledge or time investment.
There are a lot of factors that could be the reason for failure but the main reason according to me is less knowledge. If you start trading without enough knowledge you are going to make losses and that too continuously sometimes. But if someone enters trading after learning and practising, trading would be comparatively easy and profitable.
Most people enter trading in the lure of big money. There is a misconception among some of them that to get that big money profits you have to risk big. But the actual way of making big money is earning small and well planned profits consistently. Taking huge risks should be completely avoided and you can simply save your losses through proper risk management. But this greed of quick money becomes the reason for failure for many.
Trading without knowledge is like walking in the dark. You don't know what your risks are and you don't see any dangers which await you on your way. Knowledge is a kind of a lantern which shows you where and how you should go and which way to behave.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.