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Three Reasons Why Most Forex Traders Fail

Getting into Forex trading is easy. Just sign up with any forex broker and jump right into the world of forex trading. However, to succeed as a trader, it requires a different set of persona, mental discipline, intellect and a gumption of luck.

Statistically, not more than 10% of forex traders succeed in making a decent living off trading. There are many reasons why forex trading robot would fail miserably for the average person. Here are three reasons that I can think of, derived from my experience as a trader and investor for the past 20 years.

I. Blind Hope

Hope is the enemy of objectivity. One of the most common mistake a rookie can make is to hope that the forex would bounce back after its relentless downward trajectory, or to hope the instrument would continue its unbridled ascent. A seasoned forex trader does not hope. Instead, he relies on his internal metrics to determine whether to cut loss or take profit.

Automated forex robot is like a multi-year war. Losing a battle does not mean that you have lost the war and vice versa. So, lose that ego of yours.

II. Lack of Research

Sometimes, it just bewilders me when a rookie jumped right into a forex instrument just because his friend told him so. Uhh… as friendly as friends are, when it comes to money, I would still prefer to be a bit more astute. After all, you do not want to be the last man to hold the ball. Before buying any forex, you must always do research on it. Study the annual reports, dig up the latest news (or shits) about the company, do as much due diligence as you can. The goal is that you would be able to explain why this forex instrument that you are buying is worth it. When it comes to the domain of forex trading bot, diligence usually wins.

III. Not Knowing When To Buy

So, you have identified a forex instrument, researched a ton on it, and now you would like to pull the trigger. So, the next equally important question is – when should you enter? This is where many forex traders flop. Seasoned forex traders often rely on quantitative tools like a forex trading bot to help them enter positions. For new forex traders who are interested in dabbling in automated forex robot, they can check out ForexHero.

IV. Bad Risk Management

A new forex trader most often does not manage his or her risk well. This often results in the positions closed prematurely, resulting in losses. By having an eagle eyed approach to the forex margin’s level, a forex trader can ensure that his/her positions are in a healthy state.

In essence, it takes a long time to master the psyche of a forex trader (less hope, more objectivity. Less emotion, more clinical) but if one uses a forex trading bot to help him trade the forex market, the journey to be a successful forex trader should be accelerated.