The failure rate in the Forex industry is as high as 95% for beginners in the forex market, as most traders lose their capital in their first years of trading. What is interesting to note is that the most common mistakes are avoidable.

So why exactly do forex traders consistently fail to start earning money?

They Do Not Listen to the Market.

The acquisition of skills in trading is the easy part, but if you are not able to apply them in the right context, your skills are not sufficient to generate profits. In the end, it will always be the market dictating to you the price actions. Traders who do not respect the market signs will always show losses.

For example, if you insist on a short USD / EUR position, despite of new fundamentals and buyers have already sent the pair to new heights, you need to take a step back and reassess the situation. Take the time to see if there is additional information that gives more weight to the price action instead of being stubborn and even increasing your exposure further.

They Do Not Take Pleasure

Expertise is a process that is driven by a sincere desire to learn and do better. Most traders are not motivated to develop their skills and trading strategies, they do not have the passion and the pleasure of trading.

When traders do not love the game, market analysis and the time needed to understand the markets, they will certainly feel the whole process is more of a chore. This is the reason why most traders simply decide to abandon forex trading.

They Set Unrealistic Goals

Believe me, it will take a lot of time and losses before you become a profitable forex trader. There are many things that can be done to accelerate the learning curve, but there is no way to completely avoid trading losses.

Some novice traders make the mistake of thinking that to succeed, they must never suffer any losses. They therefore, add extra pressure to themselves and do not accept losing a single trade.

To make money in the forex market, one must understand that losses are frequent and inevitable. Whether you like it or not, you will necessarily experience a series of losing trades. But you know what? Even the best forex traders in the world are still experiencing losses.

They Prefer to Be Right Than to Earn Money.

It is always difficult to be wrong. This is why so many people have trouble admitting their mistakes and move forward.

Often in Forex, traders develop a bias in one currency and the fall of the dollar can therefore sometimes paralyze traders who are not in the right direction. They persist on their positions with the hope of seeing the current change direction.

Remember, it is important not to be emotionally affected when invested in a trade. Successful traders know when to exit a losing position and they are able to do so quickly. To be quite profitable, you must accept the fact that you can not control the results.

Closing, I will briefly sum up the success in forex trading to four main points. These are: listening to the market, having a passion for trading, setting realistic goals and most importantly admitting your mistakes and learning from them.