Online currency trading popularly known as online foreign exchange or forex has become one of the most lucrative internet business going by the number of people that are joining the business. Besides, the liquidity characteristics of the market make it more attractive to many new corners. As at early 2008, precisely January, the daily volume of forex being traded daily is more than $2 trillion This figure is so huge when compare with the daily stock trading of the New York stock exchange which is not more than $25billion dollar.
The potential for making it big in forex market is therefore, forex automation enormous following the liquidity of the market as mentioned above and the fact that few people know about forex market. These few traders all these while have been making large profit from the market. In recent time there is explosion in the number of forex traders joining the forex market. Because people awareness has been awaken and the cotton that cover their eyes has been pulled off. However, the risky nature of the forex market quickly begins to show its ugly head as soon as people are joining the money spinning market. So many traders discovered that no sooner than they joined the market that they lost all their investment and turned back. Some that have no lost every thing to the market are not making any headway. It’s even pointed out in a report that about 95 percent of forex traders are losing out from the market.
It is this negative development that propelled me to write this article to clearly show the top reasons majority forex traders are losing out. The top seven reasons if well understood will provide a guide for concerned forex traders who have already fallen victim of these costly mistakes. Let us quickly look at the top seven reasons why forex traders are losing out.
Reason #1: Lack of good training; some of the forex traders just attend one or two seminars which lasted for one or two days. And after these they only demo trade for two or more weeks before they go for real/ live trading. One funny thing with this set of people is that they want to start making thousands of dollars the day they start trading. They had forgotten the fact that it took them four to five years before they could graduate from tertiary college and master their field of interest. In short, lack of proper training both external induced training and self training often account for the reason while some people fail in forex trading.