Comparing all the professions, the rate of failure in forex trading is considered to be amongst the highest. The stats say that around 95 % of forex traders quit trading within a year or two. But if you have heard the name of Hafizzat Rusli, you also know how he was able to achieve his dreams by being a forex trader itself. The reasons for the failure of a forex trader are very common and if you know about them, it is not a big deal to rectify them. Go through this post to know about the 4 most common reasons that can be responsible for the failure of a forex trader.
1. Not Paying Attention To The Market Signals
Every forex trader, whether new or experienced, knows the basic skills that would be needed to execute the trade. Though the art of forex trading is all about being able to use these skills according to the tredns of the market. If the trend is asking you to use stratetegy A, but you are using strategy B, there is no point of having the knowledge that you have.
The reason for the failure of the traders is not that they do not know what strategy has to be used in which scenario, but they never bother to understand what the market is signaling them. The price action is based on the market trends and ignoring them, whether because of overconfidence or unawareness, will lead to failure.
2. Not Enjoying The Forex Trading Life
The reason for many people to get into forex trading is money. They get to know that making money in forex trade is easy, and thus they learn the concepts and just get into forex trading. To earn the money, they slog themselves in front of the monitors displaying changes in the charts. While doing all of this, they do not enjoy even a single second of their forex trading career. This is a major reason why most traders eventually get frustrated and quit forex trading.
Every individual who is into forex trading should know that maintaining a calm mindset is very essential for growth. If you are doing forex trade merely as a job and not as a thing that you love doing, your chances of failure are a lot.
3. Expecting Beyond Limits
It is said that failures are the steps towards success and it implies in forex trading too. Before you are a trader who is consistent with profits, you will have to go through various failures and learn from them. The new traders build their expectations based on the smooth careers of successful traders, but forget to understand the struggle they all had.
These high expectations can be a major cause of the failure of a forex trader. When the expectations are beyond limits, the traders try to trade in such a way that they never lose. But it is not possible to always win, and when there is a loss the traders lose their calm and doing so is a ticket to the failure land.
4. Making An Ego Issue Out Of A loss
Nobody would like to be wrong ever in life, but if you are wrong, learning from it is the wise thing to do. Making it an ego issue can be a disaster. It happens in forex trading too and it destroys the careers of not just newbies but also of the traders who have achieved some success and profit in their tenure.
When a forex trader loses a trade and takes it to his or her ego, they would not stop the trade till they cannot prove that their prediction, strategy, etc. were right. It is important to understand that things cannot be the same all the time, especially in the currency exchange market. If you make an ego issue out of a loss, there is also a chance that you might blow away your trading account within a few hours or even less.
These reasons might sound simple, but are the major reason for the failure of forex traders. If you want to discipline yourself for forex trading and avoid these mistakes, we recommend you to join the forex trading course designed by Hafizzat Rusli. To know more click this link https://www.hafizzatrusli.com/trading-courses/