More Forex Traders Are Bankrupt Than Successful
From various articles that discuss forex traders, many say that as many as 90% of traders suffer losses. More than 70% of the capital he deposited, the remaining 10% went bankrupt in total.
Of course the percentages mentioned above cannot be used as references or are 100% valid. But we can take lessons from these percentages.
What causes many forex traders to go bankrupt because of forex?
Is it because of low capital or lack of experience in capital management?
We need to know, many forex traders who know forex have intelligence that can be said to be even. There are even forex traders who have a higher education background but still experience bankruptcy.
Then what causes these forex traders to experience loss or even go bankrupt from forex?
Lack of practice and experience is one of the things that causes many traders to experience losses. Of course this is very true. They beginner forex traders think that the knowledge, experience and stock they have is enough to transact forex using real money (real money). They underestimate the demo account and think that forex trading with a real account feels more adrenaline. It’s easier to get experience using real money than demo money. Indeed, this is true, but are you ready to face the risk of a very large loss?
Many beginner forex traders feel ‘proud’ or feel ready to ‘conquer’ the forex market, even though their knowledge is still limited to dust. Even professional forex traders also feel the knowledge they have is still a little So they also still often seek knowledge to equip themselves when trading forex. That’s what distinguishes professional forex traders and amateur forex traders or traders who are often MC or margin calls.
The following are some of the reasons many forex traders experience bankruptcy on forex trading, including:
1. Forex is a quick way to get rich
For those of you who want to find wealth or money instantly in a short time. It would be nice not to try forex trading. Forex is not a fast way that can make you rich. Like business and investment in general, forex also requires experience, basic knowledge and understanding in carrying it out. Mental and psychological maturity and the right mindset are needed in investing, including forex forex trading. In addition to investing in money, forex also requires an investment of time to learn and seek as much experience as possible.
2. More than half of traders will suffer a total loss
Very true in forex investment we can lose all the capital we have or go bankrupt. But this can happen if we make mistakes that are done continuously without good financial management. Many features or tools are available on each forex trading platform that can keep losses from being too much, one of these features is Stop Loss. Many traders underestimate this Stop Loss, even though its function is very large for investment in forex trading. So, learn the use of the terms Stop Loss, Leverage and Margin before you actually start forex trading using real money.
3. Forex trading is like gambling
Many beginner forex traders who trade forex are like they are gambling, or chancy. This mindset is what makes them lose all of their capital, aka bankrupt. We need to know, any business or investment can be a place of gambling if we do not understand correctly how to run the business / investment. Take for example you open a bicycle workshop business in a population area that all use motorized vehicles, of course your business will not run well and even lose money. Or if you don’t sell Raincoats during the summer, of course the business will not give you a clear advantage in that season.
4. Trust there are people / institutions that can move the currency in the forex market
This mindset is the most ridiculous mindset if maintained continuously. Forex is the largest money market in the world with a total volume of more than 20 thousand trillion rupiah. Of course it will be difficult for someone or a financial institution or bank to be able to move forex according to their will, it is very difficult and seems impossible.
Well, for those of you who are new to forex, it would be nice to change your mindset or mindset if it is the same as written above. Forex is an investment that requires time, experience and understanding in carrying it out. Like a doctor, he also has to take a high education to become a doctor, which of course must also be done by someone to become a professional forex trader.