Are you quitting forex trading for good? Well, the truth is, there are so many reasons not to trade and many people never will, but this doesn’t mean that you need to quit. We can’t deny that forex trading is a difficult thing to solve, no matter what other people tell you.
According to Trading Education, almost 96% of forex traders give up. If you’re one of them, you might have fallen for one of the traps. Every trader has come to this issue and at a certain point, they realize they want to quit. This is completely normal.
With that being said, here are some of the top reasons why most people quit forex trading.
1. Not Enough Funds
Forex trading is definitely an expensive business. Although today it became so accessible with accounts being able to be open from as cheap as $10, this is not enough money to trade with. It’s amazing that you can easily access it, allowing many people to trade who never would have the chance to 10 years ago.
However, you’re not told that these low deposits are not enough to trade safely with. Even if you have a leverage trading of 1:500 which is what most people go for today, you will be able to place just one or two trades before being margin called. This is not worth doing and you will most likely lose that account.
For you to have a safer account, you must have a deposit of at least several hundred dollars, otherwise, you won’t be able to use proper risk management.
2. Don’t Have the Discipline
It doesn’t matter if you know how to trade forex and you took the time to study it. Why? If you don’t know how to control your impulses, this can be a problem. You’re not disciplined enough to have the patience and you want to see success immediately.
However, we all know that success is a long process that happens over time, not now or tomorrow. Even if you know the right forex trading strategies, if you lack discipline and the proper mentality, it can get pretty stressful.
3. Impatient and Get Bored Easily
Trading is not a quick process, it’s a very long one. It takes more time to learn and trade which will already place many people off who hopped into trading to be able to get rich immediately. You might have seen plenty of advertising and people who testify that they have gotten so rich overnight or just within a week, this is not true at all.
This is impossible to happen and many people expect that this can actually happen. This is the reason why they get bored instantly because of the fact that it’s necessary to learn things and to put more time and effort in order to make any money. They just come to a decision that they want to quit and don’t like the idea of how long it’s going to take to make some money.
4. Fatigue and Exhaustation
If you are trading for a long time, numerous hours in a row, then you can start to feel a bit tired. This might make you quit for the day, it will not make you quit trading completely. But when you start to experience fatigue, where you are feeling constantly tired of trading, you are going to wake up and not enjoy trading because of being tired of it.
When people start to feel this for a longer period of time, it can be one of the main reasons for them to call it quits. Are you still doing what you love, such as a hobby? If not, it might be because you don’t have the energy anymore. This is why it’s important to take breaks that can help you from burning out.
5. Too Much Confidence of No Confidence
Being too confident or not confident at all are completely different things. While they are opposites, they have a lot in common and are both reasons why a person may quit trading. Having no or a lack of confidence is common when it comes to trading. This is particularly common for people who are just starting out.
When you haven’t done or tried something before, you often lack the confidence to do it, and you might lose any confidence that you did have when you experience several losses in a row. When you are in this type of situation, it would be difficult to establish your confidence as you are not trading and this can result in you quitting completely.
Meanwhile, if you are someone who is overconfident, especially when you had several successful and profitable trades in a row. Yes, confidence is great, but when it’s too much, it can bring numerous issues. When you’re overconfident, you feel as if anything that you want to do will work.
This can turn sloppy, especially if you begin to take trades and assume that it will work instead of the ones that your strategy tells you must be taking. Just have the right amount of confidence as you follow the right trading techniques or strategies, this will prevent you from blowing your account.