Why Do Forex Traders Fail?
It is a sad fact that 90% of traders fail, and many very quickly give up. Why? When I went through a phase of losing trades I treated it as a temporary setback and went back to the drawing board. I analysed the reasons of my failure and I sought the guidance of Top Traders, Mentors and Coaches to put me back on the path of success and profitability.
In my opinion the high rate of failure for a new trader can be related to the six major obstacles that a trader faces, which are summarised as follows -Poor Skills
- Lack of adequate capital
- Setting unrealistic targets and goals
- Lack of Patience
- Lack of discipline
- High risk aversion.
If we look at the list, it becomes apparent that the failure is as a result of trading without having in place a proper Trading System and a Trading Plan One that includes mind training, quality Forex education and strategies and sound money management rules.
So what are the Characteristics of a Successful Trader?
All we have to do is to reframe the liabilities listed above;
- Adequate trading knowledge and understanding. You should seek services of good quality mentors and a trading coach.
- Adequate capitalisation Dont be fooled that you can earn thousands every week from a starting capital of $500
- Realistic Goals dont expect 100% profit each month, it simply is not possible.
- Have patience dont trade if you dont have to. You should wait