Articles and Advices in Currency Investing

Why 91% of the Forex traders losing money on long term?

September 10, 2012 by atiprofx

Hello traders or investors!

I would like to give some advices, how you can keep off and recognize the main faults of in the Forex investing.

91% of the Forex traders losing money in the first 6 months in the trading. Most of them never reach profit and only giving money for the market.

The Forex trading one of the most difficult job in the world, this is fact. Most of the people, do not think about, when start to read the online advertisements

about how quickly you can be reach if you invest and start forex trading. This is a lie. Also lie if somebody promise, you will be succesfull forex trader,

if you go for online forex education or any education with 3 days course and 3-4 months online training. Can you imagine about a doctor who can make surgery

after 6-7 months. And what do you think everybody suitable to become professional trader or doctor? Both of answer is NOT! the FOREX education can not be successful

because of the following reasons: The trading style depends of the person mental constitution, everybody has his/her different mental constitution

Thats why impossible to give unique trading style to 100 different forex trader students. Most of the people even does not have personal composition to become trader,

altough forex trading is a job what is possible to study without talent.

The Forex education is good way for the educator to get fix safe income from the curriculum what you can find on the internet. The other thing why the educator can make money from the education is the Introducing Broker contract which does it mean if he offer a client for the broker he will get rebate after his ex-student trading activity on his own account. The most important in the currency investment

the psychology of the trading, which is difficult to teach. I think it is possible to control by personal mentor. The professional trader can live from trading consistently month by month

as professional footballer or basketball player can do

2. Forex Broker Selection

Please check my previous Forex Broker article about  how you can select the right broker and reduce the risk from your trading. https://atiprofx.wordpress.com/2012/08/02/select-the-right-broker-company/

3. Money management, Mentality

• Never risk, mor than 2%/trade
• Do not over trade the market (85% of the time impossible to trade on the market)
• Using the stop loss does not mean you have money management, and wont give answer about the position size
• Do not daytrade. Most of the daytraders losing money on long term, the biggest winners of the daytrader style are the broker companies
• The institutional investors can use stop hunting tools wich means if your stop loss is under 10-15 pips you are in more danger
• Start reduce the risk trade by trade if you have loses in row till you getting back near to 0. And increase your risk if you have realized profit more than 5-6%.
• Never risk more than 2 % /trade
• Describe your stop loss and profit target before you execute the trade, and after do not touch anymore (be precise)
• do not let your winning trade turn to losing trade ( put your initial stop loss to the opening rate-breakeven)
• Be patient-The only who can decide when you can execute a trade: THE MARKET (if you would like to trade does not mean you can

Most of the traders who have enough equity to invest on the Forex market they do think it is enough money to make profit and they would like to make work their equity,

but without professional knowledge and preparation even if you enough money, the FOREX market experts will take away from you because they have more knowledge.

The people do love the fairytales that is why the best marketing campaignes are so successful, do not dreaming about quick richness, because you will be quicker poor than rich.

I hope everybody can learn from this article the positive consequence.

You can join to our forex managed accounts  service to diversify your portfolio or follow a professional trader team to increase your income. If you would like to become professional

trader you can start benefit from the FOREX market unless you are ready to handle your own equity with consistent positive profit, month by month

Attila Batics

Professional Currency trader of the Forexunderground trading team