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

The standard cause of losing dollars is that traders jump pretty early in a deal without having sufficient knowledge about it. A significant section of traders enter the market without engaging in 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 money he will gain or lose will undoubtedly be made a decision by the amount they bet per unit on a trade. It truly is not advisable to invest fairly low or quite 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 involve significantly more movement and higher risk to reach the target with the trade.

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


A person should not get emotionally involved for the reason that deciding emotionally will hamper the logical thinking of a trader and you may be lead to producing a premature buying or selling situation.

Greed will be the very first thing which should be totally avoided by a trader considering it may aggravate to invest a higher amount within the deal by seeing the rising exchange price, but sometimes things go exactly opposite from expectations.

There is normally an appropriate time to enter and exit the market which needs to be made a decision 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 a person should have faith with the decisions he would make. Most traders get depressed once taking a wrong move and quit forex. All the above are the simple aspects responsible for any failure and failure certainly is the answer into the question why do everyday people lose trading forex.