Why are most Forex Traders Unprofitable?

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Why Are Most Forex Traders Unprofitable?
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Index

• Forex Traders Unprofitable
• 4 Most Forex Traders Unprofitable
• 1. Greed
• 2. Overleveraging
• 3. Insufficient Testing
• 4. Lack of Discipline

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Forex Traders Unprofitable

• Despite what you may have heard of how easy it is
  to make money in the Forex market, the truth is
  that most Forex traders are unprofitable or fail.
  
• It is true that you will probably fail at
  trading, but you dont have to.
• Below is a few reasons why most forex traders
  unprofitable.

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4 Most Forex Traders Unprofitable
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1. Greed

• Most of the new Forex traders have unrealistic
  profit expectations.
• Trader thinks it will be possible to make 25
  50 or more month.
• They have dreams of turning the small account
  into a huge account in the few years.

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• This is completely unrealistic. Most successful
  traders make a much lower average monthly profit.
  
• If you have averaged 10 or better for more than
  a year, you become master in the trading world.

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• Take This Consideration
• If you sustain a 10 average monthly gain, you
  would more than triple account each year.
• By averaging 6, you would more than double
  account every year.
• Starting with 5,000, and averaging 3 per month,
  your account grows over 170,000 in 10 years.

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2. Overleveraging

• Poor money management is the worst account
  killers for the new traders.
• Goes back to greed because traders overleverage
  while shooting for the unrealistic profit
  targets.
• You should be risking a small percentage of
  account on each trade, and you should be risking
  the same amount on each trade.

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• We recommend never risking more than 2 per
  trade.
• Many successful Forex traders risk 1 or less per
  trade, and some successful and experienced
  traders risk 3.
• Risking more than a small amount per trade is a
  wrong decision for a trading account because all
  trading systems go through periods of drawdown.

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• If you are risking too much during one of these
  periods, you will, at least, wipe out much of
  your progress, if not completely wipe out your
  account.

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3. Insufficient Testing

• Testing is a backbone of a successful trading
  program.
• Most of the new traders are too undisciplined and
  impatient to test the new strategies thoroughly.
• It again goes back to greed because we all want
  to the fire our bosses as soon as possible.
• You want to get that account snowballing fast,
  but this is a costly, rookie mistake.

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• Without proper testing of your trading system or
  any trading setup, you are not going to know how
  it will hold up during the changing market
  conditions.
• You require to know if the trading system can
  stay profitable through the impactful news
  events, increasing/decreasing volatility, and
  growing/shrinking average daily range etc.

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• Knowing exactly what system is capable of and
  proving to yourself that trading system is
  profitable over months or years worth of
  different market conditions will go a long way in
  helping you to mechanically trade the edge that
  system gives you when you are experiencing a
  losing streak.

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4. Lack of Discipline

• Discipline is an import factor in profitable
  trading.
• Its another psychological aspect of trading that
  can either break you or make you.
• Most of the new traders have discipline in every
  aspect of their trading.

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• It takes discipline, as well as patience, to test
  new trading strategy.
• Most traders dont have the discipline to do any
  manual backtesting at all.
• They learn a new trading method, and demo trade
  it for a week or month, or worse, and they go
  straight to live to trade.

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• It takes discipline to keep trading when you are
  losing.
• If you have done your due diligence, then you
  already know for sure that you are trading a
  consistently profitable trading system.
• With discipline, you will able to keep pulling
  the trigger on your next trade and let your edge
  play out over time.
• Sometimes you have a bad feeling about a trade,
  although it meets your rules. It takes discipline
  to trade every setup that comes along
  mechanically but it must.

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• Lack of discipline can also lead you to
  catastrophic behaviours, such as revenge trading
  and overleveraging.
• Revenge trading is when you re-enter the market
  because you are trying to earn back money that
  you have not lost because your trading system has
  provided another quality entry trigger.

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• Successful, disciplined traders trade less
  because they take the best trade setups.
• They have the discipline to wait for market and
  their trading system to provide them with the
  quality setups, rather than trying to force bad
  setups to meet some unrealistic profit target.

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Thank You