Thousands of people around the world have tried Forex trading but 99% loses money in it and end up quitting.
There are top 5 reasons why a Forex trader lose money
1. Fail to Manage Risk
2. Refuse to Be Wrong
4. Treat Forex Trading as Get Rich Quick Scheme
5. Believe in Holy Grail System / Trading Bot
There are hundreds of trading strategies out there, you do not need them all to be profitable. You only need a strategy that fit your trading style. Back test the strategy until you are well-versed the strategy well. Then you are good to go!
The new traders often fall into the trap in believing there are Holy Grail Systems or Trading Bot that will help them make thousands of profits every day. Think about this, if there are such systems, they are already billionaire, right? Why are they selling to you at such a cheap price?
The main reason why the 1% Forex traders are able to generate profit in Forex trading is because they manage their risk properly, always set SL and get out of the market if their analysis is wrong, and they don't over trade (I personally won't open more than 2 pairs at a time).
Forex trading is a business, not a get rich quick scheme! I treat loses as expenses in running this business.
REMEMBER, Forex trading is a matter of probabilities, no body win 100% of the time. As long as our strategy has a winning rate of 40% and above, we still can be profitable if we only enter trade that has good Risk to Reward ratio (preferably at least 1:2 or better) and discipline ourselves with the top 5 failure reasons above.
Never give up because quitter will never be success!
Thanks for visiting. The post was originally written by Brian Ong, the founder of OKKForex.com. He is specialized in Forex Wave Theory and Advance Technical Analysis.