Above everything else you require knowledge and appropriate trading outlook. In the event that we need to lead a secured and open to trading environment with positivity we the traders need to pick the solid broker which ensure their customers funds.
All the above there is some grain of truth. Brokers, knowledge, not knowing what they are doing, mindset, risk management ... and Greed, greed, greed ...
But NO ONE said that losses are simply related to TIME! What I mean? If you don’t take risks, you won’t earn. You will have positive trades, you will have negative ones, but in the end all your CAREFUL trading will NOT MATTER, because the profit related to the time spent will not be profitable! It will be some cents of profit ... You definitely need to take risks to make money! Real money! And risk is always associated with losses. That's the whole truth. You're welcome :)
The reasons to understand foreign exchange in order to understand forex trading you made this why I believe that any online community or even varshali or social website or any account is the best strategy. The concept is simple, easy, and safe because it just dreams of few beers profit, and that should be easy to achieve. However, it also takes analysis of the market movement to find the existing trend and then do the trades accordingly since the Forex market moves with waves, which sometimes go up and sometimes go down, just like the price of Amore cake. The reason of feeling is that traders don't get to the right place at the right time, so it is difficult to make good profits in forex trading.
The reasons for failures can be different. I don't even know how many categories of failures exist. Every situation is different that is why it is a very hard task to try to generalise them. I can mention the most popular and widespread mistakes which young traders make and which lead to the absolute failure of one particular trading account. First of all, it is high expectations. There are so many people who come to trading with the idea that here they will make tons of money and become millionaires in a week. Surely, this assumption is far from being realistic. Trading requires lots of knowledge and skills and whatever. So, the first thing a trader should know is that trading requires lots of learning and practice if you want to become a success and make at least some profits. THe whole process of learning is not easy because nothing goes smoothly in the beginning and there is practicaly no motivation as you don't earn anyting in the beginning. Secondly, choosing the wrong broker. I know that forex market is becoming more and more regulated, but there is still many scams here. THat is why a trader should be extremely careful while choosing the broker which will not disappear in a week with your money in their pockets.
Most people fail because they believe in fairytales that trading is the infinite source of money available to everyone without proper background, knowledge and skills. Surely, such a conception is far from being true as trading requires lots of patience, efforts and motivation. It is something like answering the question of why the most of writers fail to be famous and well-paid. Because not all of them are ready to live in poverty before the learn how to write cool things and attract publishing houses. Trading is quite the same: only the strongest can stick it out and get to the bottom of everything which happens on the market. They accept the challenges of the market every day and they are ready to overcome the hurdles on their ways. If you think that you can come to trading and start making good decent profits immediately, you'd better go to casino and leave the money there. At least, you'll derive some pleasure from it.
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.
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.