Peeling back the layers of hurt and disappointment after failing at something in life is a difficult yet necessary process to learning why we failed and to better understand the steps moving forward as to why most first-time forex traders fail.
When it comes to trading the foreign exchange markets, many novice investors tend to vastly underestimate the difficulty, skill level, and knowledge-base required to adequately and consistently make progress with the forex markets.
Now, these truths are by no way, shape, or form formulated to deter individuals from embarking upon the highly rewarding and adventurous byproducts of the forex trading industry but rather to equip you regarding the rigors ahead.
With this being said, we’re going to break down a few of the most common reasons why most first-time forex traders fail AND what can be done to prevent future failures by directing you to relevant resources that can help ensure your success as a trader down the road.
Lack of Preparation
One of the most common factors why forex traders fail would be a lack of preparation.
This lack of preparation tends to stem from several different avenues but perhaps the most relatable one stems as an outcome that trading is oftentimes portrayed as being much less difficult than it truly is.
I have little doubt that you haven’t come across a YouTube video or two, where a day trader was proclaiming that he amassed hundreds to thousands of dollars within minutes to hours through day trading forex.
While the process and sometimes disclosed ‘strategy’ appear to be sensical and of great value, they should be taken with a grain of salt and looked at from a different perspective because the angle rendered is just as crooked as a sleazy politician and only provide partial pieces to a vastly incomplete jigsaw puzzle.
This is why doing your due diligence as an investor, leveraging the power of the Internet, and conducting vast search queries through search engines such as Google will pay off significant dividends and potentially save you from an immense sum of misery and financial losses.
How to Be More Prepared
- Take ownership in your preparation, how prepared you are will dictate the trajectory of your trading ventures.
- Conduct copious amounts of research, make sure to include search queries that include the terms “scam, feedback, reviews, or legit” in addition to the strategies, trading software, signal service providers, trading brokers, and forex trading resources that you intend to formulate your strategy upon.
- Commit to an industry-leading educational service provider such as Traders Academy Club to gain undisclosed wisdom from years trading experiences along with proven and time-tested trading approaches that can be used by traders of all experience levels.
Trade Strategy Shortcomings
The improper applications of technical and fundamental trading strategies is another reason why most first-time forex traders fail.
That’s not to say that the strategy they are using is ‘broken’ or ineffective but more along the lines that they may not be utilized during the proper market conditions.
While strategies can vary by asset selection, trade style, and methodology, you must fine-tune strategies and seek out strategies that suit your style of trading.
This is perhaps most easily performed through backtesting trading strategies through forex demo accounts where you can test strategies with real-time rates but without the financial risks involved.
Ideally, you should execute no less than 100 demo practice trades with a strategy before applying it with a live forex trading account.
If you are uncertain where you may find tested and effective trading strategies, professional trader and International Certified Financial Technician Vladimir Ribakov, has compiled a multitude of forex strategies some of which may be found here:
- Free Killer Forex Strategy – Double Trend Line Principle
- MACD Indicator – Complete Trade Guide + Strategy
- RSI Indicator – Trading Guide, Tutorial, and Amazing Strategy
- The Matryoshka Trading Principle – Free Forex Trading Strategy
Additional education resources regarding trading methodologies may be found on our free eBook page.
Utilizing “Insights” From Unverified Sources
One of the Internet’s greatest advantages can also be its biggest pitfall.
The vast quantity of information available on the world-wide-web is exponential.
This means that while yes there is a multitude of information at your fingertips you also don’t know the authenticity and legitimacy of the material in front of you.
You can see how this may present a significant problem for forex traders who wish to comprise their strategies upon concrete and authenticated information, not myths or fairytales that promote unrealistic outcomes of rich reward.
This is why demo testing every strategy before trading a live account is crucial!
When it comes to investing, you want to stick with industry-leading trading portals and invaluable trading channels that are operated by Certified Financial Technicians that are legally licensed to render investment advice!
Not unverified online traders or marketers who have a nifty and mischievous skill set with photoshop and video editing.
With almost a decade of experience with participating and blogging within the confines of the online trading arena, I have seen hundreds of traders lose their money to unauthenticated sources that range from unregulated trading brokers, corrupt signal service providers, ineffective trading systems, and so much more so always make sure you conduct your due diligence and verify that an opportunity is legitimate before committing!
Also, if you aren’t certain if any offer is legitimate or not then simply reach out to us and we’ll investigate for you!
Forex Trading Resources to Evade Failure
We’ve already skimmed across the free eBooks and a handful of trading strategies but Vladimir also shares a sincere foundation of forex trading knowledge through his YouTube channel, which hosts over 92,000 subscribers.
On Vladimir’s YouTube, you’ll come across daily and weekly trading ideas, forex trading podcasts, and forex webinar and trading strategies with over 880 trading-related videos published to date.
Additionally, resources that may be of value to you would be Vladimir’s and Yordan’s successful and high-rated automated trading solutions whose performance can be seen documented here.
Should you be looking for more specific trading information then we invite you to reach out and connect with us and we’ll help point you in the right direction.
The Bottom Line
To conclude, traders tend to be their own worst enemy.
A lapse in trading psychology coupled with being unprepared, utilizing improper trading approaches during non-relevant market conditions, and extracting lessons from sources that are unverified, unproven, and rendered in a non-legal capacity are all disastrous mistakes that many novice traders perform.
Do your best to invest your time and hard-earned money with legitimate forex trading opportunities and if you are considering forex trading for the long run then you’ll be well-served by giving Traders Academy Club a shot.
For more online trading resources related to online forex trading, you may feel free to browse our blog and take advantage of all the free resources tailored for you.
Thank you for your time and hopefully, you find some information of value through this publication.
Tim Lanoue
Guest Author
