Forex Trader Failure: Why Most Traders Fail?

Are you not achieving the success you desire as an aspiring forex trader? The probable reason might be that you are committing psychological errors which is contributing towards your failure in the market. Most of the traders over complicate the entire process of trading with complex trading strategy and also with over analyzing the market. If your method is technically difficult, it does not mean that it will bring about consistent profit. Keep the things simple by maintaining simple trading strategy formulated around price chart.

The errors that the aspiring traders commit:

The aspiring traders start with simple methods for trading, but gradually they unnecessarily add indicators, irrelevant analysis tools that messes up the entire scenario resulting in artistic modern art.

Complicated techniques are not the key to earning money in the forex market. In our capitalistic society, making money with little work is not possible. Many traders simply look for shortcut methods for earning money in the markets. Reading the economic release in order to analyze the market will not take you anywhere. If you are placing lagging indicators into your price action chart, then you are committing an error of serious nature.

The common psychological error that amateur traders commit is over complicating the process of trading with complex techniques and strategies. Just stick to the basic rules and abide by price action chart. The Price action chart must be devoid of indicators, volume etc. They must only include price bars and candlesticks. Price chart is beneficial for several reasons:

1. It is the most simple and straight forward method of trading. Price action contains the main information about the market. Keep it simple and free from price indicators. Keep your price action chart free from complications.

2. They are the analytical tools that need to be employed.

3. The Price action chart is the only way of keeping a check over the emotion and maintaining discipline. Emotional stability is a must for effective trading. You can use your trading method effectively with price action analysis.

Skills that needs to be mastered

Master the price action analysis trading strategy to attain mental clarity. Do not get beguiled by your own mind. Our minds conspire to function against us in forex trading. The traits that have proved successful in other professions might not apply in forex trading. Do not over analyze and study the market intensely, do not think that the approach more-is-better will apply in the forex trading as well. All these can be detrimental to your trading career.

The logic that applies in the field of medicine is not applicable in forex trading at all. A physician is guided by the fact that after studying and over-analyzing the things will bring success. This tendency is really hazardous for aspiring traders. Professional traders keep things simple to achieve their long term goals. 

Discipline and thorougher control over the emotions differentiates an amateur trader and a professional trader. Know the fact that emotions are your worst enemies. Follow the system of price action analysis to rule the stock market.