The statistics existing at the moment shows that among all those who are starting to study Forex or classical exchange trade, only 5% come to a decent income level. The rest of them, anyway, are forced to leave the trade on currency or stock market and look for the new ways to success in other areas. If we have a look at the feedback of the losers, the majority of people blames the brokers, bad trading system or even the market itself, but never confirms that they haven’t done enough for their victory by themselves.
If we try to find a grain of truth, we can easily notice that the key to failure are the disadvantages of a trader, but not external factors. This is the main problem, because of that the majority of people has to work for someone else and do not what they would like to do, getting low incomes.
As soon as the experts studying the phenomenon of Forex, have revealed this moment, a big research was carried out, in process of that many traders were interviewed, their reviews on forums, sites and other thematic platforms were studied. As the result, there was a small list of trader’s disadvantages that makes achieving success on Forex impossible. Below we give its key positions, that, perhaps will help the beginners to realize what is worth avoiding and what is worth striving as working and earning on Forex is possible and not as difficult as it may seem.
The main problem of the most traders lies in the fact that they spend their main time searching for the Grail. In the context of Forex, under the Holy Grail they mean some trading system or method that gives a guaranteed profit. Unfortunately, there is nothing that could give permanent true predictions on Forex as the exchange trade is just a game of probabilities. This knows every professional and this idea is drummed in the heads of the beginners from pages of many books, from words of experienced traders on various courses, seminars etc.
But for some reason, lots of people go on looking for something magical and aren’t satisfied with good trading systems, exhausting themselves and their deposits searching for a perfect one. Such self-deception is the main disadvantage of many beginners that forget that trading is the most difficult way to easy money. By the way, from here comes the next disadvantage.
If we try to analyze this muddle that the majority of traders have when they come to the trade, then often we can find the idea common for everyone, that Forex is a kind of Klondike and it is enough just to come here and stake a claim, and money will flow like a river. Surprisingly, even those who seem to have an idea that here manna from heaven won’t fall down on their heads so easily, anyway will lose a couple of deposits before they understand that they need to analyze carefully not only the market, but also their trading, controlling risks and psychologically accepting the losses already before the deal.
Thinking that Forex dispenses easy money is a serious disadvantage, which has ruined not only one trader already. So, one should be ready for a hard work on oneself at once, as without a long and often painful process of the experience accumulation, self-discipline and patience one has just nothing to do in exchange trading.
Despite not many of unlucky traders confirm it, for the most of them Forex is an analogue of casino. They come to the trade without having any idea of its basics and trying to understand them. The main driving force of them is passion, new emotions, joy of winning etc.
The saddest thing is, that this problem has a serious psychological character and even may require professional intension as such approach leads with a 100% result to the loss of the deposit, after what the failed traders tend to take credits and borrow money from friends in order to try to win everything back again and again. The situation is aggravated in those cases, when by chance they manage to earn in first deals at once, as then they see only possibilities and don’t take risks into account at all.
Even taking into account that is is almost proclaimed from the housetops, many traders prefer to think that the capital management should be studied only by big investors or those traders who earn constantly and much. So, now you can pay no attention to this entire gewgaw” and do more “important” things like searching for the Grail, for example.
Is it necessary to say, how serious this trader’s disadvantage is? Because the non-observance of the elementary safety measures set by the money management is the direct way to failure. As trading is, on top of everything else, also the expectation of profits in the distance, not one-time. And as every trading strategy periodically issues bad deals, sometimes even in whole series, it is necessary to provide yourself and your deposit the possibility to get through them, at that guaranteeing a good recovery factor, what it is just impossible to do without using the rules of capital management.
Until recently, the psychology was given little attention in general, although it allows revealing a whole range of serious disadvantages that are common for the most traders. In this vein, everything is important – from the mental attitude before the trading session and understanding one’s weak points to guessing the actions of the crowd on the basis of the new incoming information.
In this regard, one should pay enough attention to the psychology, and then trading will automatically improve, as even a good trading strategy will not bring the long-awaited results, if a trader will not be able to pull out the profit because of greed and close a losing deal because of fear.
The main disadvantage of traders in the vast majority is the reluctance to develop. At that, everyone wants money but giving every minute to improve themselves and their trading they don’t want for some reason. As the statistics shows, many people are only enough to light up with a dream and get basic knowledge about Forex. After that, they sit down and wait until money flows to them like a river.
But the market is volatile in its nature, and when looking for an example for comparison, an endless ocean comes into mind. Accordingly, hoping that knowledge received figuratively in 5 minutes, will allow understanding its essence and guess the movements, will be naïve, to put it mildly. You need patiently digest every lesson, laying a solid fundament, on which basis your success will be build. Just like this, no other way!