XMTrading: Why do 90% of FX traders lose? Explaining the common traits of winners

Many people who are thinking about doing FX trading, where 90% of investments are lost, are concerned about their win rate, so I will explain the characteristics in this article. In fact, it is said that only 10% of people can win at FX, but why is this? There is actually a hidden reason. And those who win have something in common.

The reason why 90% of FX lose
What are you doing with the other 10%?
Forex trader is a technical job
Recommended XM
1. Related

The reason why 90% of FX lose

It is said that 90% of people lose in FX. Looking at other blogs, many people explain why they lose, but not many explain the mechanism behind why 90% of people lose. So I will explain the mechanism behind why 90% of people end up losing. If you don’t understand the big risk of your funds, even professionals will lose. FX, which is popular and requires a high investment, is also ranked high. In order to avoid failure, be sure to analyze the market and make a high profit in a good situation. Make it a positive total, not a gamble.

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huge investment

People who want to start FX from now on, people who have just started often use all of their savings, or more than half. Because there is a desire to make money, you suddenly spend a lot of money. However, when you actually do FX, most of them lose. More than 90% of people lose all of their initial investment.

Beginners spend a lot of money, so they often lose millions, and most of them leave in despair. Among beginners, it is said that 90% of the players are short-tempered and leave the stage. The remaining 10% will still crawl up and try to win. These people will be the winners.

automated trading

There are many people who want to start FX from now on, but choose the easy way to win because they do not have the skills or experience. Automated trading is where those people end up. Automatic trading has a winning rate of over 90%, and you can win most of them, but once you catch a big trend and go against it, you will not be able to withstand the unrealized loss and you will lose all the money. In this world, there are many scammers and many people who are deceived, but it is said that beginners who are deceived account for 90% of those who are interested in trading (stocks, FX, virtual currency).

investment scam

Also, not only forex, but 90% of people who are losing investment tend to be deceived by investment fraud. The number of investment fraud incidents grows exponentially each year, and beginners are especially deceived. Deposit scams, insurance scams, cryptocurrency ICO scams, and other fraud schemes attract beginners one after another. And most of them are disgusted with investment and quit, and the percentage is said to be 90%.

No method at all

Personally, I think there is a possibility that you have no method at all. There is a lot of information on the Internet, but even if you buy a trading book, it is difficult to fight if you do not have a specific trading method. You have to decide how to fight fundamentally, not on the leverage setting or the amount of funds. This is the biggest point. Use a method that allows you to fight with minimal funds with the image that it is very easy to manage your position. You will only incur small losses when verifying your order, and it will also be easy to manage your funds. It is important to have one basis and repeat it until it is firmly executed.

What are you doing with the other 10%?

So what do traders who survive and win actually do? We looked for commonalities among those who are actually winning, so check them out as they have a big impact. Study the basics and make profits. When using financial services, it is important to decide on important trading styles and rules. In order to succeed in operations from the beginning, investors need to control their mental state first, and they also need to predict and confirm the price movements of currency pairs in the market. This is the secret to keeping losses stable when starting foreign exchange.

small investment

It is common for beginners to suddenly invest a huge amount and lose a lot of money. As a result, most people will leave, but those who still crawl up will try again from only 10,000 yen or 20,000 yen. And start trading with the minimum lot. That way, even if you keep losing, it won’t hurt you financially.

Some people say that it is difficult to accumulate money with a small investment, but if you are a person who can win in the first place, you can make a small amount of 1 million yen. It’s meaningless to increase the principal until you can’t do it. Many beginners do not realize this.

keep going

Forex is not easy to win. People who really want to win are doing it all the time. It takes at least two to three years to become successful in Forex. There is a saying that continuation is power, and this is exactly the case. It takes years to build up skills and experience. It is said that it takes three years to become a full-fledged office worker, and FX is the same.

make a good method

Those who are successful in FX enter using chart patterns that they are good at. A good technique is one that has been honed by repeatedly entering 1,000 or 2,000 times or more. Therefore, they know where to enter and where to cut losses, which gives them the advantage of being able to trade calmly without being influenced by emotions. Once you reach the advanced level of each, you will be able to put it into practice in difficult, fluctuating markets while always being aware of the rates.

Forex trader is a technical job

FX traders are technical professionals. It is not easy to win, and FX traders are not magicians. Someone who cannot play the piano cannot suddenly play a solo on a big stage. An amateur with no medical knowledge cannot become a doctor. It’s the same with FX. Therefore, if you want to win, you have to hurry and take the long way. Only those who are willing to win even if it takes several years will remain. And that percentage is 10%. On the other hand, there are many people on the Internet who can win completely, but the reality is different. It is a tough road to earning billions, and on average, a calm response to opportunities and risk management are required.

Recommended XM

XM was originally known as a forex company with too wide spreads. But this was only recently. Now there is an account type called KIWAMI account. The spread is very narrow and very suitable for trading. Therefore, this account type is highly recommended. Especially for those who trade in pounds, it is recommended because the spread is extremely narrow.