Why So Many People Fail At Forex Tr

Most people lose money on Forex. That’s a fact. But why does that happen?This simply happens because most people come to Forex with the wrong mindset. They see Forex as a get rich quick opportunity, and they learn the hardest way that Forex is not a get rich scheme.Forex trading is a business and has to be treated like it.Let’s see the most common mistakes that can make you lose your shirt on Forex:Mistake number 1: Treating Forex as a get rich quick opportunity:Due to the high leverage on Forex, beginners start to think that they can start with just a small amount of money and get millionaire in a short time span. Well, this is a huge mistake. If you use high leverage, you can double or triple your account in a short period of time. No question about that. However, you can also lose your entire account in less than a day. This is something most beginners forget about… If you increase your profit potential, you also increase your risk.If you want to make money on Forex you need to protect your money. You need to use small leverage or no leverage at all.Mistake number 2: Beginners want to achieve great returns on a short period of time:This mistake is extremely connected with the previous one. Most beginners want to achieve great results on the short term. So, they leverage their account too much and try to day trade. This way, they can start making good money daily. That’s a thought, but unfortunately that’s not the reality. Day trading can be profitable but only if made by the most experienced traders on the market. When you’re day trading you’re paying much more trading commissions than on swing trading (remember that commission fees are free, but you always pay the spread). So, in order to make money on day trading, you need to make much more pips than on swing trading.Besides this, if you’re day trading, you need volatility. Most of the day there is a lack of volatility in the market. If there’s no volatility you won’t be able to make money. When that happens the only one profiting from your trades is your broker.Mistake number 3: Thinking it’s easy to make money on Forex:If it was easy to make money on Forex, everyone would be doing it. Forex is one of the most complex and difficult markets to trade and you can only make money if you’re good at it. The only way you can make money on Forex is to educate yourself and work hard on it. You need to read everything that you can about Forex. The fact that you’re reading this article shows me that you’re on the right track. But don’t stop here. Read everything that you can and study the Forex market. Visit our forex trading systems, forex trading courses, forex ebooks and forex softwares sections to find the best products on the market.You should also open a demo account on a Forex broker so that you can start practicing and improving your trading skills. And you should never ever start trading on a real account until you’re making money consistently on a demo account.Mistake number 4: Thinking you’re smarter than the other traders or smarter than the market:Some beginners think they are smarter than everyone that can’t make money on Forex. That’s a big mistake. Some people are smart, well educated and can’t make money on Forex. If you start feeling you’re smarter than them you’ll believe that you don’t have to make big efforts to make money on Forex, and that will probably destroy your trading career. You need to keep in mind that Forex trading is a difficult business, and you need to work hard on it if you expect to make a living at it.Other beginners think they are smarter than the market. They believe they can find some magical way to make money on Forex. I have bad news for those guys: there’s no magic that make you money effortlessly.The market is always right. If you lose money you were wrong, not the market. When you lose money, you should accept responsibility for it and analyze your trade so that you can discover what went wrong. This way you’ll grow as a trader and avoid some mistakes in the future.Traders that blame the market don’t last much time in Forex.Mistake number 5: Thinking that you can make money in Forex with no work at all:Some people think they can make money on Forex with no work at all. That’s a huge mistake. Forex is a market where most people lose money. If you want to make money at it, you need to work hard, educate yourself, use the best products and dedicate plenty of time to it. That’s the only way you can make money on Forex.Mistake number 6: Using a lousy Forex broker:Some traders decide to trade on an unreliable broker and learn that it’s simply impossible to make money if you’re using a bad broker. If your broker has bad executions or charge big spreads, you’re in a big disadvantage compared with other traders.If your broker doesn’t offer you good platforms or charts, you’ll need to pay for platforms or charts which will affect your wallet as well.There are other people who open accounts in unregulated brokers. This is a huge risk. If those brokers runaway with your money, you’ll be in trouble.Before you open an account with a broker make sure you know everything that you can about it. A good broker must offer you good trading platforms and cheap fees. It should also offer you security. It must be regulated (preferentially in USA or in Europe) and should never ever trade against their clients.(http://www.forextopten.com/why-so-many-people-fail-at-forex-trading.html)