A few reason
swhy most traders lose money so you won’t make the same mistakes.
- Trading uneducated. Trading takes knowledge, understanding and learned skills. The main reason why Forex traders lose money is because they fail to equip themselves with the educational tools they need to succeed.
- Not practicing. Some traders don’t practice trading or testing their Forex knowledge using demo accounts or Forex knowledge assessments before they begin risking their money in live trades. When you use these practice and assessment tools, you can better identify your strengths and weaknesses and re-educate yourself in those areas before you test drive your skills in the live market.
- Being dependent. Some traders choose to rely on others for the information they need to place trades instead of learning to identify beneficial trades for themselves. The problem lies in the source. The Internet is full of people who think they know what they are doing, but in reality, they may not. Also, when relying on someone else, not only do you trust that they will give you the right signals, you also trust that they will always be there when you're ready to trade.
- Trading emotionally. Emotions and trading do not mix well. They cause traders to hold poor positions too long or good positions to the point where they begin losing. Emotional trading is senseless trading! Forex education could give you the confidence to turn off your emotions and trade with back-tested strategies. This means you could be more effective and more in control of your trading future.
