Why do most traders lose money on Forex

  • Most of them are quite emotional and cannot stick to a good strategy. They change their approaches quite fast and randomly, trying to find the best strategy - which will never come in fact.
  • Most of them start trading without any real experience and in-depth understanding about the financial market intricacies.
  • Most of them set high expectations versus minuscule personal effort.
  • Most of them don’t learn from their own mistakes.
  • Most of them want to make money fast and don’t want to consider long-term trading by simply following the trends and major news.
  • Most of them operate with high leverage in order to make fast money.
  • Most of them know that they are losers, but cannot fight the addiction and they hope that the very next trade would be the start of a successful series.
  • Most of them don’t actually analyze the fundamental and the technical side of a currency pair, but trade on impulses when watching the chart or the news - oh! It’s a strong uptrend. This source says “to buy”! Let me buy!
The mentioned above are the reasons that come from the traders’ side. However, they are not the only guilty ones. Here are the real reasons why most of the traders lose money:
  • Because there was formed a tied group of scammers - this is a huge network of Forex brokers, marketing agencies, Forex product makers, and so on. Their goal is to just profit from people’s addiction. You will hear this joke - deposit $250 with our broker and you will become rich! Our private consultant/adviser will help you to achieve the best results!
    Well, in fact, you can note that all these scam brokers are actually legal in Europe and all around the world, except the US. They’re so powerful that they’ve invaded Google - when you write their name together with “scam”, you will actually find positive reviews from dubious broker review sites. These brokers trade against their own clients, they use special tricks with their platforms to manipulate the live quotations, and so on.
  • The media, especially the online world, was invaded by Forex advertising paid by these cheap scammers and semi-scammers. The goal of these adds is to attract as many people as possible without actually explaining the risks.
  • Because the governments and regulators don’t want to get involved to protect their own people from this madness. In the US, you can actually invest in stocks - buy them, own them - it is like having a piece of Apple in your pocket. Most of the so called Forex brokers provide CFD products - you own nothing. It is actually betting. It is worse than betting. You don’t even understand the financial markets, but you bet on an uptrend or downtrend. If you would bet on Real Madrid or Barcelona in their home league, you would become more successful.
  • Because this dirt of Forex brokers infiltrated so deep in people’s mind, that trading and investing got synonymous today and 400:1 seems to be a reasonable leverage.
What the Heck are Clone Brokers and Should You Be Concerned?
These are some basic reasons.
I hope this helps!

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