"Eighty to 90 percent of players in Forex traders lose money, through banks providing the service were generally making a profit from it, the banking regulator said." This quote is useful but far from conclusive. The profitability of day traders
The most actively traded currency pair in the forex market is EUR/USD, which consists of the EU's euro quoted with the U.S. dollar. If you thought the EUR/USD exchange rate was going to riseThis may take time, but using a trading method that you trust can go a long way at reducing stress while trading. They risk too much per trade. A wannabe trader risks 10% or more of her trading account on a single trade. This is problematic because when you're worried about making money, you won't focus on your trading process. You'll end 1. Many Traders Lack Forex Education. The prevalence of losses among Forex traders is a common theme in the trading industry. The question remains, why do 95% of traders lose money? It can be argued that many lack proper education and forex training. Additionally, there are several key factors which contribute to this unfortunate statistic. Reasons Why Forex Traders Lose Money Befriending the Market. The market is not something you beat but something you understand and join when a trend is Low Startup Capital. Most currency traders start out looking for a way to get out of debt or to make easy money. It is Failure To Manage Risk. Some explain very well why most traders lose money. 80% of all day traders quit within the first two years. 1; Among all day traders, nearly 40% day trade for only one month. Within three years, only 13% continue to day trade. After five years, only 7% remain. 1; Traders sell winners at a 50% higher rate than losers. 60% of sales are winners Every academic study (and personal experience) says that most (99%) of day traders lose money. So, basically, it doesn't work. But there are tens of thousands of traders who get up every day and try to do it. It's like trying to swim upstream with ankle weights. Swing trading works, and long term holding absolutely works.
Most traders lose money due to the following main reasons: Low Startup Capital: this leads to overtrading and overleveraging to compensate for the low capital. Improper Risk Management: traders are unable to control risk and end up losing more money per trade than they can afford.gmhK.