It is considered that chances of constant profit and prosperity in the Forex market are very unsteady, that is why 90% of traders suffer a set-back. Here are some reasons why it occurs:
1. Deficiency of proven trading methodology.
Constantly losing traders, don't know key numbers. They have no concept of the level of support and resistance. Schedules and chart patterns are foreign to them. And risk management — is a novel area.
Without proven trade method or strategy, the trader is doomed to a failure. And in the end the trader will give up trading after a series of annoying failures. But the hope exists. Practicing a correct training and working method, psychological balance, patience and persistence — the success is possible.
2. Misunderstanding of how the market works, key indicators and numbers and useful time for trading.
When the trader places an order, he literally remains face to face with the most serious nerds and geeks in the world. Many professional traders are not only very clever and educated, they also are unbelievably rich. But it doesn't mean at all that the ordinary trader can't outplay them.
It means that the trader has to be well-trained before the fight. David can overcome Goliath, but only if he is perfectly prepared. Someone can say that trading education — it's too expensive, however, the cost of ignorance is much higher.
3. Unjustified risk.
The newbie trader risks 10% or more the deposit for once. The real traders first of all think how to operate risks, and only after that about the profit. They don't enter the transaction if it is too risky. Professionals keep risks at the level of lower than 2% of their balance of the account. It gives them strength and the chance to endure losing transactions without panicking.
4. Insufficient mental preparation.
Psychology — is the huge part of successful trading, and most of the people are simply not ready morally. When it comes to money, the fear, greed, and other emotions turn the trade into a very difficult occupation. Before investing money, the trader has to be sure that he understands all aspects of trading and that he is able to cope with them.