Why 95% of People Lose Money in the Forex Markets

Forex Trader

1. Laziness

A lot of people new to the forex markets tend to want to take shortcuts. These are likely to be people who have above average intelligence, and because they have been successful in other spheres in life, they assume that making money on the forex markets will be easy. As a result, they do not put the necessary time and study into it, and they make ill informed trading decisions. However, there is also a whole new level of lazy when it comes to making money on the forex markets. These are the people who are attracted to buying trading ‘systems’.

2. Systems

There are hundreds, if not thousands of forex trading systems for sale via the World Wide Web. Unfortunately, the vast majority of these will send you to the poor house rather than making you rich. Some of these systems come in the form of trading rules enclosed in a short document (which can be found in any trading book), others are coded into automated bots, many of which claim to make you rich beyond your wildest dreams. You have to be pretty gullible to believe such claims. After all, if it were that easy – then we’d all be rich (actually, we couldn’t all be rich, because there is always a loser for every winner – that is the very nature of trading)!

3. Giving Up

Some people may put the hard work and effort in, and they might well develop a winning trading system or methodology themselves – a method with an edge. However, unless you stay in it for the long haul, you may well be inclined to give up when a losing streak comes your way. Drawdowns are inevitable, and they will come. However, if you believe in your system, you must ride it out and stick to your rules and methods. A trading edge will only come to fruition over a long series of trades – so trading over a short period really has no significance whatsoever. The lesson being, if you believe in your method – don’t give up!

Why 95% of People Lose Money in the Forex Markets

1. Laziness

2. Systems

3. Giving Up

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