Why only a few traders make money in Forex trading

In forex, it is very disheartened that only a 5% of the traders make money in Forex. Though there are many traders in the market, the market is very volatile and providing rapid movement of the price level, it does not help any of the traders in the market except the professionals. Most of the money are changing and flowing from country to country and only a few people are successful in making the money out of Forex. The question that you want to hear is, why people lose money if there are trillions of dollars flowing into the Forex market. If you are trading live indices then you must know how hard it is to make money by trading.

Why few traders make money?
One of the key reasons only a handful of traders make money with their Forex trading is that they are often the victim of the identity issue. It is the issue that relates the traders with the other traders. In simple, we can say that, if there is a news of money flowing into the US economy, it is the identity problem of the traders, whether to go with the flows, thinking that others traders could not be wrong. Or whether to second guess your decisions. Remember, most of the novice traders in the Forex market trade with emotions and thus fails to make a profit. They are found to follow some Forex masters, their websites to know and predict the future signal pattern, which has been also provided by the website and go with the flows.

How to become a part of successful trader community?
So, if you are losing money in Forex, do not jump into a decision. Doublethink your decision. Do not go with the crowd. Remember, only a few makes money in trading live indices , so it is very easy to understand they do not follow the decisions of the crowd. If you double analysis your decision, you will lose your identity as a novice trader. Rather, you will be analyzing the market from the part of a seller and buyer. Remember, one market movement cannot give you the best of both world. Either it a buyer’s win, or a seller’s win. Either way, one person loses. Going with the crowd is never an option. Double think your option and analysis the market from the perspective of both a seller and trader.

Develop a solid trading strategy: If you truly want to become a master in trading live indices then you need to develop your own trading strategy. Most of the novice traders in the financial market tends to use other traders trading strategy and ultimately fails to make money. But if you look at the professional traders then you will notice that all of them have developed their own trading strategy in the market and over the period of time they have fine tune their system with their personality. So if you truly want to become a profitable trader in the financial market then make sure that you develop your own trading strategy based on your basic knowledge of the forex industry.

Follow risk management: No matter how much you try which trading strategy you follow in the market it’s inevitable that you will have some losing trades in the market. Even the most professional traders have many consecutive losing orders in the market. So when you execute any orders in the market make sure to follow proper risk management factors since it’s the key ingredient to becoming successful in the forex trading industry.

• This topic was modified 7 years, 6 months ago by Admin.