Monday, April 9, 2012

Why do Forex Traders Fail ?






“Failure is a man who has not learnt from his blunders. If you are able to cash in on that experience you are
on the path to success”
– Jay Lakhani, Forex Trader
It is a sad fact that 90% of traders fail, and many very quickly give up. Why? When I went
through a phase of losing trades I treated it as a temporary setback and went back to the
drawing board. I analysed the reasons of my failure and I sought the guidance of Top Traders,
Mentors and Coaches to put me back on the path of success and profitability.
In my opinion the high rate of failure for a new trader can be related to the six major obstacles
that a trader faces, which are summarised as follows -
1. Poor Skills
1. Lack of adequate capital
1. Setting unrealistic targets and goals
1. Lack of Patience
1. Lack of discipline
1. High risk aversion.
If we look at the list, it becomes apparent that the failure is as a result of trading without having
in place a proper Trading System and a Trading Plan– One that includes mind training, quality
Forex education and strategies and sound money management rules.
So what are the Characteristics of a Successful Trader? All we have to do is to reframe the
liabilities listed above;
1. Adequate trading knowledge and understanding. You should seek services of good quality
mentors and a trading coach.
1. Adequate capitalisation – Don’t be fooled that you can earn thousands every week from a
starting capital of $500
1. Realistic Goals – don’t expect 100% profit each month, it simply is not possible.
1. Have patience – don’t trade if you don’t have to. You should wait for a set-up according to
your trading plan and system.
1. Have Discipline to follow your rules
1. Understanding and Managing Risk
1. And lastly the most important is having a Trading System and a Trading Plan. Virtually
90% of Traders that I have coached have never had one!
If you look at the advice from the world’s most successful people or traders today, you will notice
that they follow the guidelines as identified above.

“Define first the level of risk you dare assume. Start with a small position, and then build it up if it
works” – George Soros
“Give me a stock clerk with a goal and I’ll give you a man who will make history. Give me a man
with no goals and I’ll give you a stock clerk” – J.C. Penny
“ If you go to work on your goals, your goals will go to work on you. If you go to work on your
plan, your plan will go to work on you. Whatever good things we build end up building us.” – Jim
Rohn
In this course, I will attempt to turn you from an amateur trader to a master trader. All you have
to simply do is to follow the simple ideas and strategies put forward in this manual. It is only
YOU who is responsible for your success or failure.
“I can show you the path to successful trading – but YOU have to make a choice to follow it or not.”
– Jay Lakhani, Forex Trader.



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