To be successful in Forex trading, you need to be very patient. And this success can’t be achieved overnight. It takes time and you don’t have the choice but to wait. This is the reason why very few new traders tend to succeed on their first few trades. It is estimated that only 2% of new traders succeed and make money.
So, why is the percentage of wins among new traders very low? There are countless reasons to be considered but we narrowed it down to 5. Check these out.
They get drown in losses
You cannot trade if you don’t have an account. One of the greatest mistakes that traders make is they don’t mind the losses that they could possibly acquire. They don’t bother learning how to avoid blowing their trading accounts.
New traders tend to take whatever trading ideas are offered to them and they simply hope that it will work out. But, this is not how the market works. Basic knowledge in risk management and economic correlations is highly needed. This will lead to more wins instead of more losses.
They see the real face of Forex trading
Those flashy advertisements of gold and luxury are to be blamed. Most of the time, newbies are lured with the prospect that they can win easily in trading. The idea is quite overwhelming especially if you’re tired with your corporate job.
Then, they believe that those high-priced EAs and trading systems will save them from losses. They spend so much money on these things without knowing that knowledge and experience in the market are the only ones that can save them by blowing their accounts. But they still end up losing their account. That’s when FX trading is branded as a scam. FX trading isn’t a scam, those shady brokers are.
The lesson here is to be diligent in choosing a FX broker. After all, you are dealing with real money and it’s just for your own good to look for a reputable broker. Search for major brokers in the market through trading forums. Your fellow traders will gladly help you find trusted brokers.
Losses discourage them
Losing is married to winning. This is the reality that FX traders need to accept and deal with. But you can cut the risk that you take. Admit that you did wrong, although not all traders are comfortable in admitting that they did something wrong. There are also some traders who hate to see losses reflected on their ledgers. Unfortunately, before you become a consistently profitable trader, you need to go through with lots of losses.
They find it hard to return ‘in the zone’
You are in the highs of your Forex trading career and you feel that you are ‘in the zone. You experience a string of wins after hitting the best opportunities in trading. While you are trading, you also have a strong grasp of your emotions.
But soon after, this winning streak will end. The luck goes away and you decide to take a vacation away from the screen. This isn’t a bad idea rather than continuing the losses. But the problem here is how you return to the ‘in the zone’. Seasoned traders don’t have issues with it unlike newbies.
As long as you are motivated enough to get back to where you left, you will surely return to the ‘in the zone’ once again.