Why do most retail forex folks lose money?

[kut2k2]

"Why do most retail forex folks lose money?"

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Poor capitalization.
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This is the worst reason of all for a retail forex trader to lose. Forex is the one security where you can start small and build your account up. IF you have a good trading strategy and you know how to position size.

Which of course most retailers are missing at least one of those.

 

[tbillm]

My broker, Interactive Brokers, mentioned that it has the highest percentage of profitable forex traders. I am generally very happy with IBKR for stocks investing. I thought of perhaps venturing into Forex.

This is what I found.
http://www.financemagnates.com/fore...ofitability-report-more-accounts-and-profits/

It is true that IBKR is the best. However, what shocked me is that the best had only 45.5% of profitable forex traders. In other words, most forex retail traders lost money. I think other asset classes like stocks and bonds fare much better.

What is so difficult about forex? Forex virgin seeking expert opinions from elite traders here. Thank you in advance.

Sir: Forex rotates continually in a short range, most days traders think they are receiving an entry signal, only to get thrown back into the rotation. Forex only trends about 10%. Highly probable entries would be a stong break from rotation after a retest of the range,a wave 3 trigger from a 13 min or 21 min chart, or if you prefer a confluent move thru the zero line of the 50 cci, rsi, and adx ( which is actually the 14 cci).. If a day trader doesnt wait for an entry he will get chewed up but good. thankyou for sharing.

 

[Laissez Faire]

I'd say it's more your style of trading rather than your trading vehicle (currencies, stocks or futures) which will determine your failure rate.

Short term day trading is by far the most difficult to master.

Next is swing trading over a larger time period. You still need skill and a solid methodology to succeed over time, but the margin of error is bigger compared to day trading.

The latter is long-term investing, ideally in stocks or indices. With patience, most people can succeed here and you don't need much skill to do so. Of course, the profit potential is considerably less. Still, considering that you will most likely lose with the first two styles, you will probably be better off anyway.

 

[loyek590]

I'd say it's more your style of trading rather than your trading vehicle (currencies, stocks or futures) which will determine your failure rate.

Short term day trading is by far the most difficult to master.

Next is swing trading over a larger time period. You still need skill and a solid methodology to succeed over time, but the margin of error is bigger compared to day trading.

The latter is long-term investing, ideally in stocks or indices. With patience, most people can succeed here and you don't need much skill to do so. Of course, the profit potential is considerably less. Still, considering that you will most likely lose with the first two styles, you will probably be better off anyway.

you got that right, Like the man told me, "Kid if you want to make money, don't invest in oil, invest in oil wells." Currency is just a commodity, like oil. If you buy and hold USD you are about the same as my grandmother.

 

[Trader05]

This is the worst reason of all for a retail forex trader to lose. Forex is the one security where you can start small and build your account up. IF you have a good trading strategy and you know how to position size.

Which of course most retailers are missing at least one of those.

There are a lot of reasons why retail forex traders lose money. Part of the reason why it is so difficult to make money in forex markets is because the markets are controlled and manipulated by large financial institutions. There is a class action in the United States about several practices that banks engage in which have the effect of fleecing retail and smaller forex investors. For example, several banks have admitted to front running aggregated client orders, running up a forex instrument at the end of the day in coordination with other traders and a host of other illegal practices. I would be interested to hear any stories about this from Canadian traders.

 

[zdreg]

Also I could tell you the answer to the question in the title, and there is a very good reason most are loosing, but then it might affect my profit

you must be one of those posters who thinks that their broker would front run their trades. nobody gives a damn about your trades. that is ego. nothing good can come out of it.

 

[Maxue]

I think many individual investors take forex trading as part time job, but analyst and institutional trading always in forex industry for many years, professional handles professional affairs.

 

[lloydrobinson]

My broker, Interactive Brokers, mentioned that it has the highest percentage of profitable forex traders. I am generally very happy with IBKR for stocks investing. I thought of perhaps venturing into Forex.

This is what I found.
http://www.financemagnates.com/fore...ofitability-report-more-accounts-and-profits/

It is true that IBKR is the best. However, what shocked me is that the best had only 45.5% of profitable forex traders. In other words, most forex retail traders lost money. I think other asset classes like stocks and bonds fare much better.

What is so difficult about forex? Forex virgin seeking expert opinions from elite traders here. Thank you in advance.

Today could be interesting for forex and most days have been for quite a while!
However, I found a site recently that provide decent forex tips and they have really helped me out, so I thought I'd help you guys out and leave a link for some forecasts: https://www.youtube.com/playlist?list=PLctmVL7imFbz_bBichfZL3Pkh3HC7YG7I
Thanks guys, this isn't a joke so please check it out it's a big help!

 

[doggyfx]

Gambling. I was an eyewitness of 5-6 deposit blowouts were newbies just couldn't stop to fire with trades after a row of losses. Main goal turned from trading and studying market to winning back losses it was really terrible.

 

[jimmiebarton]

Sir: Forex rotates continually in a short range, most days traders think they are receiving an entry signal, only to get thrown back into the rotation. Forex only trends about 10%. .

yep