Why 95% of Forex traders lose in Forex?

Fx charts moves prove clearly human weaknesses in taking a united decision as it move in full chaos each single minute during trading time “watch 1 minute chart”… if we want to make a list of human weaknesses concentrating on traders weaknesses according to my 5 years of experience in Forex … the list of human weaknesses is based on my observations for more then 1000 traders trader i meet during the past years also based on my personal weaknesses as a human :

1- Human Greed, is the main cause behind why 95% of traders lose in Forex … and that greed expand to casinos, poker and all the aggressive games human play or have access to them … when a human bet on all his fortune to double or triple it’s money in a short time its the greed human weakness controlling his actions … human greed is attached strongly to the nature of a human because the life of a human is short … 50 or 60 years if someone is extremely lucky will see 80 or 90 with a good brain… and because of this speedy life where a year pass in a blink of an eye … the greed of human lead them to greedy aggressive investments to gain money in a fast way … and bank know this fact so good … what big Forex players do, they hunt greedy traders who expose there money by going against the mass or against the trend … in the trading world we call it correction or market changing direction … Greed will always make you lose cos the market is full of surprises … this is why a trader need to have a pure view about the risk involved in Forex and calculate his affordable loses before he calculate his winnings … and if you can afford losing stop lose in a trader then you can open this trade, … wisdom in trading is to control your greed or eliminate your greed one time and for all … cos always you will lose or you might win in Forex cos nothing is 100% in Forex and wisdom is to lose small when the market go against you “cut lose small & let profit grow”

 2- Human fear, let’s be realistic all human have fears as i m a human i have my fears … and my biggest fear in life is to end up someday not fearing anything as it will not be braveness at all but full stupidity … and this fear level vary from a human to another, only a fool don’t fear nothing … and if we allow fear to control us in Forex we will end up watching the market action and never to be part of it by opening a trade … always i divide fear to 2 categories, Good fear: where a trader is always training his skills to become better and he fear to lose big in the market which might be translated as bad performances which mean he is not discipline or wise and just one of these 95% who always lose … this fear will help a trader to always push his limits to become better, train better, be more serious in the market and this is why i see it a good fear cos the trader will be always pushing the limits to analyze the market better and be aware of all the tricks which might happen in the market, just to be alert and ready as a true hunter … on the other hand … the Bad fear: is when a trader enter big size greed greed greed, and his heart start to pump fast when the market move against him or will be worried not knowing when to close fast with profits as a scared rabbit when the market give him some pips “they call them selves scalpers and they do the biggest mistake of all cos they cut profit small and let lose grow hahaha” when you hear a trader saying he is a scalper = he is terrified when he trade and it’s a bad fear cos he stress too much next to charts cos of fear … and this fear will be translated as bad performances … “trading is about performance, control your fears by doing good calculating for the worst case scenario and be ready for it before you calculate your potential profits”

 3- Human ego, pure weakness in a human and when you hear a human in life saying he know everything meaning he know nothing, cos life is an open test and we all keep on learning new things till the last day of our lives … and day life give us tests which prove to us that we still need to learn lot lot of things … many traders i met they have 10 years of experience or 30 or 40 years of exp “in most cases 10 years of experience losing accounts” they end up full of ego writing books, teaching new traders, forecasting on Tv’s, simply to hide this big fail … think about it for a second … why a professional trader need to sell books for few dollars where he can make sooo much in one trade … it’s where the trader become weak drowning under his own ego … thinking he know too much, where in reality he still small facing the market … and need to change all his foundations as a human first then as a trader to become better … learning new things each day each hour to survive when tests happen … and each trade put all your Forex knowledge under a direct test in the market … how you manage your trade in a brave and humble way, is what make you a true brave wise trader … to perform better and make steady profits … always when you stand next to the beach feel small watching the greatness of our creator … always when you trade respect these 7 billions human living on earth in the same time you are living doing all this action of supply and demand – big mass economy reflected on your small chart of 3 trillions daily market turn over … always say to your self it’s a new day, new trade to learn something new, no matter what the result will be hitting my stop lose or my take profits … i will manage my trade in a professional way never let the market go under my skin and make me angry and start trading with supper greed …patience, prudence, to control greed, to control fear in a perfect way … is the only way to become a good daily trader and to manage trades with braveness … at first it look hard … but with good training even the hardest things in life as trading will become so simple and easy to do each day 🙂

 4- Human addiction … when you will know you are a tradoholic or trader addicted … here’s a simple test for you to know that, just ask your self these questions:

 – do you open trades as you buy vegetables?…