The failure rate from the FX market is much higher than the success rate and this may be the reason why folks lose trading forex. There are a number of factors which expand the failure rate to such high levels. Its estimated that out of every 100 new traders who enter the market, 96 of them fail and only 4 gain profit long term.

The primary cause of losing profit is that traders jump really early in a deal without having sufficient knowledge about it. A good sized section of traders enter the market without performing any practise on a demo account or practising technical or fundamental analysis.

Whenever a deal is initiated, a trader needs to decide the amount of leverage he will invest. The amount of bucks he will gain or lose will undoubtedly be determined by the amount they bet per unit on a trade. It really is not advisable to invest very low or incredibly high leverage. If the investment is too high, the risk of cleaning out your account is also high. On the other hand if the investment is too low, the gain might be low and need to have a lot more movement and higher risk to reach the target on the trade.


The strategy used to analyse the market much be accurate. A trader should neither depend completely on fundamental analysis on the market nor should he follow the technical analysis alone. To get an idea of present and future state for the FX market one should follow a mixture of each strategies.

A single should not get emotionally involved considering deciding emotionally will hamper the logical thinking of a trader therefore you may be lead to creating a premature buying or selling situation.

Greed is the to start with thing which should be totally avoided by a trader as a result of it may aggravate to invest a higher amount inside the deal by seeing the rising exchange price, but sometimes things go exactly opposite from expectations.

There is consistently a correct time to enter and exit the market which needs to be resolved correctly in order to be victorious. Most traders either don't give much attention to your trends or signal or they don't have any knowledge about them. A deep study is required to know whether the market is in trend or range, before initiating a deal.

Apart from this one particular should have faith while in the decisions he helps make. Most traders get depressed right after taking a wrong move and quit forex. All the above are the fundamental aspects responsible to get a failure and failure stands out as the answer to the question why do individuals lose trading forex.