Why People Fail At Forex Day Trading

I was asking myself this question just the other day...

Why do people fail at Trading? What is it about Trading that is so difficult?

It may amaze you to discover that fully 95% of traders lose money in the markets! That also includes professional traders in investment banks. So what could the problem possibly be? What's so difficult?

It seems to me that there are several issues here. But it all comes down to just three key problems...

1) No profitable system or method.

2) Inappropriate strategy

3) Psychological mindset issues.

If we take (1), what this means is that most traders are trading with an unproven method. They have never taken time to check whether the method actually works in the first place. Or they may move from method to method after experiencing a few losses in each. Worse still, they may have no specific method at all.

Inappropriate strategy means that even if the trader has a proven method, he may be applying it inappropriately. This can cover a number of things such as trading too large a size, not taking ALL the trades that the method gives (i.e. second-guessing the system), trading more markets than he can comfortably keep on top of, lacking discipline, and so on.

Psychological mindset issues (3) are the worst. They account for fully 75% or more of a trader's failure or success. This is deep stuff. It goes all the way back to your attitudes about money, gained from when you were a child. Your self-esteem. Your attitudes to wealthy people. Whether you even feel deserving of success.

These three obstacles are a pretty fearsome combination. Most traders who eventually succeed have to face and overcome them in one way or another. It can take many years of thrashing around in the dark, plus many losses... including losing your entire trading account several times over. Happily, it does not have to be that way.

The best way to shortcut the process and jump the queue to profitable trading is to spend the majority of your time really studying and researching Trading in depth before you start committing serious money in the markets. This process of dedication to continual improvement will ultimately propel you straight into the league of successful profitable traders without having to go down all the frustrating blind alleys they did. However, most traders simply will not do it.

If you do, it will help you to make money, not lose it. By contrast, I've seen losing traders who never invested in themselves, never wanted to seek out people/resources with the answers; thought they were doing just fine by themselves, thank you very much. Call it conceit. Call it stupidity. Whatever.

But you know what? They carried on losing! And it went on and on and on.

Your goal should be to take a long hard look at each of the three killer obstacles mentioned in this article and develop rigorous procedures to overcome them. If you succeed in doing this, your Trading will improve rapidly. You will amaze yourself, especially with all the money they are making!

Why not give it a try and see for yourself?...

by: Asoka Selvarajah

POST COMMENT

Forex Trend Buying and Selling Forex Overdrive Settings Stealth Forex Signals Review 10 Things All Those Interested In Forex Trading For The First Time Should Know Forex Swing Trading - The Perfect Strategy to Make Big Gains in Trading Currencies! Forex Trading Made Easy - Make Money Fast Trading Currencies in 30 Minutes a Day! A Victim Of Poor Isa Rates? Make Your Money Do More With Forex Trading Looking To Increase Your Finances? Take A Look At Stock Or Currency Trading Get your own Forex trading strategy and make it work for you How To Test A Forex Scalping Robot? Simple rules for placing orders at Forex Trading Bill Poulos Forex Trading Courses - Pros and Cons Choosing an ecn forex broker is the best way you can start your forex trading career