There you sit, your hundred dollar bills vanishing before your very eyes. Your a beginning Forex Trader and your in over your head, you chalk up loss after loss maintaining your pride that you'll turn things around with the next few trades. One thing leads to another and you've managed to drain your entire account in less than 3 months. This is the most common story associated with aspiring Forex traders, thus the extremely high attrition rate. Why do so many aspiring Forex Traders fail? Lets break it down:
1. Lack of Knowledge
2. Lack of Discipline
Obviously knowledge is a broad concept, but the mission of this article is to expose why some potential Forex traders fail and others succeed, thus knowledge cannot be under-stated. Anybody who is good or great at anything in life usually has more knowledge than their peers in relation to at least one aspect of the subject matter. This is obvious, one must be knowledgeable especially concerning their potential lively-hood. I'm glad we all agree on this. However, lets dig deeper into this issue of such a high attrition rate. The number is incredibly high for a couple of reasons:
1. Ease of Electronic Trading
2. Potential for huge payoffs via leverage
The Forex Market is being advertised more and made easier to use everyday. This is great news for any product or market. However, this will simply translate into an even high attrition rate for the Forex Market. Why? Because the number of potential traders will increase from advertising and ease of electronic trading. This increase in numbers will consist of 9 out of 10 "new" traders having zero knowledge in all critical areas of Trading the Forex Market. These 9 out of 10 "new" traders, have one goal in mind, "win money". In turn, they have no risk management structure, no technical perspective and certainly no trading philosophy are defined strategy. Therefore, these "new" traders that will be contributing to increasing attrition rates might as well go hit up their local casinos for some blackjack, slots and roulette. Seriously, have a fabulous time, order drinks and stay in the Ace's suite for the night. If you not going to take the time to gain the necessary knowledge to trade the Forex, don't waste your time and money.
On the other hand, if your one of the few who never back down and have a deep inner desire to succeed in everything you do, including learning how to trade the Forex Market, you have a magnificent journey ahead of you. So many times, unknowing people will bad-mouth the Forex Market as something negative or something to stay away from. The truth is, when one takes the time to gain the knowledge and perspective of learning how to trade the Forex Market, they will inevitably find that one CAN indeed consistently profit large amounts of money from Trading the Forex Market. In other words, for most it will remain a mystery, however for the select few who push forward with gaining the necessary knowledge, they will uncover a world of profiting from price action and crowd movement. The question is, do you want to take the necessary time to gain knowledge and learn the ins and outs of the Forex Market?
Find resources that not only provide tons of great material for beginning traders, but also provide an ongoing educational process. Forex Trading Success is developed through learning about Perspective, Strategy and Philosophy. Find Traders who have been through the journey of Forex Trading beginner to Forex Trading professionals and are on a mission to bridge the gap between aspirations and success.