Why do most retail forex folks lose money?

[Eddiemorra]

For forex, the market participants are Governments and Central Banks, Banks and Other Financial Institutions , Hedgers and Speculators.
Now you have no excuses

 

[WWarrior]

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.

I think IB have the highest percentage because a lot of traders have migrated there and earned their stripes from the murky world of retail brokers.

Yes forex is tricky and takes time to navigate all the hurdles it throws at you and you'll learn a lot about yourself too. Theres a few here who know what they're keep asking questions. good luck

 

[jimmiebarton]

Therefore, trade size so small that the money won or lost is completely irrelevant. Use this time to develop tremendous habits. Then when you get your real chance, your skills be they market skills or discipline skills or psychological skills will all be lined up.

So, retail traders lose because they jump at the deep and of the pool when they should be in the shallow end for at least three years. Probably longer.

I'm not so sure. When "trade size so small that the money won or lost is completely irrelevant" ...bad habits develop for the same reason....money won or lost is irrelevant. It's when the $ really f^cking matters..you get interested....laser vision. Kinda similar to a paper acct where nobody cares everyone wins

A question to you nitro: You're a billionaire trading one lots...are you a better trader now that doesn't mean a damn thing to blow out a $50K account?

 

[Maxue]

Company traders has most experienced and skilled analyze, and they are full time, but for retail traders, they are just individuals and most are part time, so you can find what's the result.

 

[Al_Bundy]

2 main reasons as far as I'm concerned: get rich quick mentality, similar to penny stock traders - I'd bet the failure rates are similar. Very low entry-barrier: when you can open a forex account with $100 what do you expect ?

 

[doggyfx]

2 main reasons as far as I'm concerned: get rich quick mentality, similar to penny stock traders - I'd bet the failure rates are similar. Very low entry-barrier: when you can open a forex account with $100 what do you expect ?

Believe me or not 100$ is enough to make 200$ from it.
But true you won't make off living from trading with 100$ it's impossible.