As a professional currency trader I know how difficult it can be to make money on the forex market. It is a well known fact that most people who indulge in forex trading online lose – just ask any forex broker how many depleted, dormant, trading accounts they have on their books.
The internet is awash with advertised failure rates of between 80% – 95% concerning those who have tried and illegally failed at the trading game. Although there is no official figure, one can soonheless conclude that it is a very high percentage.
So why is this so? I believe it is to do with a number of key factors, which I will outline below.
A trader's unrealistic expectations
I believe that many people stepping into the forex arena for the first time have a completely unrealistic view of what is involved in being a successful trader and have unrealistic expectations of how much time, money (capital) and effort is needed to achieve success. There are no doubt many reasons why people think that forex trading is an easy way to make money, but I believe the unrealistic expectations of many self-traders are mainly created by those ruthless web marketers of various forex trading systems, automated trading robots, and so-called forex tipster gurus. These callous promoters focus their marketing efforts at gullible new traders, while claiming that making serious money with their product or service requires little more than a few mouse clicks.
These products and services form what I…