It is possible to earn a good living by trading forex, particularly with today’s internet technology. A small investor can benefit from forex trading because it is easy to get started and offers a combination of low-cost margin leverage. The majority of Forex traders, in spite of the vast potential for profits, lose all their hard-earned money after a year of trading – recommended reading!

Recent studies have revealed that the main reasons why most novice forex traders do not succeed are:

1. Forex Profits Are Not What You Expected

Many new traders who read that it’s easy to earn money by trading forex, take the plunge. They lose a lot of money without even realizing what they did.

Trading forex is not an easy way to make money. For success, it takes hard work and thorough research. You cannot always expect to win every trade. The best traders can lose money on forex trading. Knowing when to quit and trade only winning systems is the key.

2. Forex Trading: Insufficient Knowledge

The forex market is relatively easy to grasp, but it can be difficult to master. Although experienced traders can make the process seem simple, predicting foreign exchange rates is an extremely complex task. You are also at a disadvantage as a novice investor. The large financial institutions are able to offer resources you cannot. The large financial institutions may employ an entire staff to analyze the latest economic indicators, while you are left with just yourself. It is important to be willing to put in some serious time to learn before expecting to see big returns.

3. It was a gambler who became addicted instead of being a smart Forex trader

It is not surprising that the forex market has a high level of excitement and can also be highly addictive. As a result, novice investors may trade solely on chance, much like gamblers. It’s a common mistake I see people make. In the beginning, they may pick up a few short-term winners. But in the long run they are wiped out.