Hello, this is KAMUI.
In this article, I will talk about “Why do 90% of Forex traders lose money”.
Do you have any of these problems?
“I started Forex but I can’t win at all.”
“How can I win?”
“Is there really anyone who is winning in Forex?”
“I don’t feel like I can win at all, as if I am being set up to lose.”
It is said that 90% of those who enter the world of Forex lose and exit the market.
Although most of them cannot keep winning in this world of Forex, there are 10% of all traders who keep winning consistently.
What did these people do to become winners?
What makes them different from the 90% of traders who lose and exit the market?
I think many people would like to know these secrets.
In fact, the difference between those who are winning and those who are losing is very small.
By reading this article, you will learn two things;
- The clear “difference” between losing traders and winning traders
- What you should do to become an ever-winning trader
By the way, all of my methods are available in a free report. This report is 135 pages in length and is richly illustrated, explaining the four entry points that have a very high winning rate.
“It was an eye-opener to see how to look at the charts.”
“The content was shocking. I will definitely use it as my technique.”
“I am very impressed with the clarity of the content.”
I have received a number of positive feedbacks like this one. It’s totally free, so please sign up for the newsletter using the link below.
Now let’s talk about “Why do 90% of Forex traders lose money”.
Why 90% keep losing: lack of trading skills
The conclusion is that the reason why 90% of people lose and exit the market is because they have no trading skills. That’s all.
The 90% of traders who keep losing, without a single exception, do not have the skills to win.
They may be mistaken because they may win by a fluke, but they do not have a reliable skill to keep winning consistently.
It’s very simple: they just don’t win because they don’t have the trading skills.
Forex traders are technical professionals
Being a forex trader is a technical profession. It is the same as programming, playing a musical instrument, being a cook, being a doctor.
If someone does not have programming skills, it is impossible to create an application or tool.
Someone who cannot play the piano cannot suddenly play a solo on a big stage.
Someone who has not learned the art of French cooking surely cannot cook a full course.
An amateur without medical knowledge cannot find cancer from an x-ray and cannot cure a patient.
Forex is no different.
In a world where top traders in your country, top foreign traders, hedge funds, and other financial professionals are competing against each other, it is impossible for an amateur who has not acquired sufficient trading skills to win.
Traders are professionals who understand the market and make money from it.
Just as unskilled professionals cannot survive in any world, it is impossible for those without trading skills to survive in the world of Forex.
Some people mistakenly believe that Forex is a gambling game, but this is completely wrong and I would like to take this opportunity to make them aware of it correctly.
Forex is not gambling, but a technical profession in which you can win consistently if you master the skills.
And here is the important thing, all skills can be acquired through study and training.
If you learn programming properly and acquire skills, you will be able to create apps and tools.
If you learn to play the piano from a teacher and acquire skills through practice, you will be able to play a song.
If you develop your French cooking skills in the demanding cooking world, you will be able to create delicate dishes that will impress people.
If you study medicine professionally and acquire skills, you will be able to prescribe and operate appropriately and save the sick and injured.
The same is true of Forex.
If you acquire trading skills, you will be able to judge and deal with market price fluctuations appropriately and win consistently.
Therefore, if you want to win consistently and become rich in Forex, you must acquire the skills.
As I have said many times, Forex is not gambling. It is a skill. It is a technical profession in which you will be able to win consistently if you master the skill.
I have said this over and over again because it is the most important thing.
If you can change your mindset right now to the understanding that forex traders are technical professionals, and that you will never be able to keep winning without acquiring skills, I think you will be one step closer to becoming a winning trader.
How do you acquire the skills?
So, the next thing to know is how skills are acquired.
When learning any skill, the following two steps are always taken.
Step 1: Study and acquire the correct knowledge
Step 2: Practice based on knowledge
Simply put, “correct knowledge and practice become skill”.
This is the equation in acquiring skill.
For example, if you want to master the piano, you need two things: basic piano knowledge and practice.
To begin with, you need to be able to read music to play, and even if you can read music, you need to practice and develop your skills to a level where you can earn money to live on as a professional.
In other words, when you learn a skill, you need to have both the correct knowledge and practice at the same time.
You cannot learn a skill with only one of them. You can only acquire a skill when you have both of these two steps.
Even if you have the correct knowledge, if you do not practice and make it your own, you will not acquire the skill, and conversely, if you do not learn the correct knowledge and know-how and act in the dark, you will not acquire the skill.
90% of traders who lose and exit the market are unable to do either or both of these things.
That is why they never learn the skill and never win.
Just to be clear, I am not talking about whether you are a full-time trader or a part-time trader.
Even if you are a part-time trader, you need to be a professional trader to keep winning even small amounts of money.
Many people misunderstand this as well, so you should understand it well.
Regardless of the amount of money you earn, you need to acquire professional skills in order to win.
Then, I will explain in detail the two steps for acquiring skills.
Step 1: Study and acquire the correct knowledge
Anyone who hasn’t studied is out of the question.
The first step in acquiring skill is to study and put in the right knowledge.
In the case of Forex, there are three main types of knowledge that need to be learned.
- Knowledge necessary to read charts
- Knowledge of money management
- Knowledge of mentality
For example, the knowledge required to read the above 1) chart is as follows.
- Dow Theory
- Moving averages
- Horizontal lines and trend lines
- Chart patterns
- Candlesticks
- Multi-time frame analysis
- Mass psychology
First of all, you need to study these carefully and input them into your mind.
Without this knowledge, it is obvious that you will not be able to read and understand the charts, and therefore you will not be able to continue winning.
Now let me ask you here, when you look at a chart right now, can you tell the following?
- Which direction is the majority looking in at the moment?
- Are the buying forces prevailing, are the selling forces prevailing, or are the two sides competing against each other?
- Is there a high or low probability that the price will go up after the decision is made?
- Is now the time to consider buying? Is it time to consider selling? Is it a wait-and-see phase?
If you have the knowledge necessary to read a chart, you will know all of these things.
If you do not understand, it means that you “cannot read a chart” because the knowledge necessary to read a chart has not been input into your brain, and you will never continue to win in such a state.
I don’t know if it is because FX has a strong image as a side business, but there are so many people who trade without much study and without understanding even the basics as mentioned above.
“how they can trade with their own precious money at such a skill level…”
In a way, I admire their guts, but it is not a good thing, because we are not volunteers who are hanging out our money.
‘I’m a first-year medical student! I want to be a good doctor someday!”
I mean, can you trust the person at this stage of career to do your surgery?
Even if this person is better than those around them and has studied medicine a bit and has knowledge about it, it still doesn’t qualify as professional enough to be entrusted with a life, does it?
Please be aware that you are doing the same thing.
The world is not so easy that an amateur who does not study anything about Forex can win, and it is arrogant and mistaken to think that you can win without studying.
Just studying knowledge is not enough to win
We have been talking about the need to first study and input all kinds of knowledge about the market in order to acquire trading skills.
I think there are a lot of people who say, “I do a lot of studying.”
“I’m planning to start trading Forex, so I bought three books on Forex to start with.”
“I regularly buy books on Forex at bookstores.”
Many people are thinking of studying and acquiring knowledge for now in order to make money with Forex.
However, as you may have guessed, it is impossible to win by just reading a few books and gaining knowledge.
As I explained earlier, the formula for acquiring skills was correct knowledge and practice, right?
The next step in becoming a forex professional is to repeat the practice and make it your own by using the knowledge you have studied and practicing it in the actual market.
Many people lack this practice by far.
For some reason, when it comes to Forex, most people think that they can win with just a little knowledge and challenge the market as amateurs without any training.
A person who wants to be good at soccer;
- Practice more than anyone else while getting advice from the coach or manager
- Practice in practice matches and tournaments
- Practice daily to improve your weaknesses exposed in games
- Kick the ball every day
- Practice at home
A person who does not practice daily just because he reads a how-to book on soccer cannot become a good soccer player.
Also, don’t forget that there are many professionals in the FX world who are at the level of Messi in soccer.
They are professionals who move huge sums of money.
And these professionals are legitimately taking your money and making huge wealth by taking your money as amateurs who enter the market without any skills.
Whose money do you think is their wealth?
That’s right, your money, the money of amateurs who enter the market without any skills.
Since Forex is a zero-sum game, the money of the 90% of traders who lose and exit the market is all taken away by the 10% of winning traders.
Therefore, in order to prevent your money from being taken by such financial professionals, or more specifically, in order for you to keep winning consistently and become rich by consistently increasing your assets every month, you need to improve your studied knowledge into a reliable skill that you can use in practice.
Now let’s move on to the most important point of this article, which is how to put the knowledge you have studied into a solid skill that you can use in practice.
Step 2: Practice based on knowledge
Self-improvement through the PDCA cycle
Earlier, I said, “In order to acquire the skills to keep winning at Forex, you must repeat the practice by using the knowledge you have studied and practicing in the actual market, and make it your own skill.
However, just accumulating practice in the dark without knowing what to do will not help you acquire skills no matter how long you stay there.
“What should we do then?”
By finding areas for improvement by yourself through the PDCA cycle and practicing while overcoming those areas for improvement, you will acquire skills.
In the case of Forex, what we do specifically is to analyze our own trades.
Analyze every single trade you have made, including real trades, demo trades, and trades made using trading practice software.
In particular, analysis of losing trades is essential, but it is also advisable to analyze all winning trades as well, since in the case of Forex, winning trades can be won by a fluke, even though theoretically they are wrong.
- What went wrong?
- What can be improved in the future to eliminate losing trades like this one?
- What are the common patterns in my losing trades?
- Even in winning trades, is there anything theoretically wrong?
You will identify areas for improvement that need to be corrected in future trades.
Things that were overlooked during the trade will become clearer when analyzed later.
You may think to yourself, “Why didn’t I figure this out?
I am often surprised at my own stupid trades.
As you eliminate areas for improvement and reduce your weaknesses, you will inevitably lose fewer trades.
The fewer losing trades you have, the fewer losses you will incur, so even if the number of winning trades is the same as usual, your total profit will be positive.
Let’s aim for this first.
- Trading
- Self-analysis
- Grasping the weak points
- Study and improve them
- Next trade
- Self-analysis
- Grasping the weak points
- Study and improve them
The PDCA cycle, studying and improving one’s weak points while trading day after day, is the way to acquire skill.
However, this method has a very difficult part.
- Can you discover the areas for improvement on your own?
- Can you figure out how to correct those areas for improvement?
These are the two points.
As I have been telling you all along, this method involves doing your own trade analysis, finding your own improvements, studying them, and correcting them yourself.
However, this method has the following problems.
- What if the points to be improved are off the mark?
- What if the point to be improved is correct, but the method to correct it is off the mark?
- What if we don’t even know what was wrong and what was right about this trade?
There are problems like these, and we frequently hit these “walls” before we can analyze and improve.
- You miss what should be improved and leave it alone.
- Conversely, we mistakenly think that we need to improve something that does not need to be improved.
- The method to correct the point to be improved is wrong.
- You don’t know what to improve in the first place.
If you do the analysis and improvement by yourself, there is a very high possibility that these mistakes will be made, and if this happens, you must be aware of the problem that it will not lead to growth as much as you would like.
This is probably the point where many people get tripped up in acquiring skills.
“Oh no!! I want to improve my weak points for sure, and learn skills the fastest possible way!”
For those who want to learn skills in the shortest and fastest way possible, there is another way.
That is the method I will explain next, which is to have a coach watch you one-on-one and correct your mistakes as you improve.
Improve mistakes with the coach’s guidance
This is the fastest way to learn a skill.
If you think about it, people who become professionals in any field always have a teacher or coach.
In the world of sports and music, of course, but even in other skill fields, it is normal to go to school or to be taught by someone in a teacher-like role.
If you have enough sense and talent to become a professional, you should be able to find areas for improvement and correct them by yourself, as explained earlier…
However, I have never seen a person who has become a professional who has done everything by oneself without a coach.
Why don’t they do it by themselves?
The answer is simple: there is a limit to how much you can improve your skills on your own.
Even if you study and train on your own;
- Can’t find the improvements on your own
- Both the improvements and the ways to correct them may be wrong
- Hence, your growth will be significantly slower.
It is difficult to survive in that world if you keep doing things on your own.
If you have a coach look at you, the coach will point out at once what is wrong with you. Also, the coach will be able to give you the correct remedial measures to correct your mistakes.
The speed at which you acquire skills and grow is much faster than if you had continued to practice on your own.
It is the same with chefs, for example.
Even if you graduate from a cooking school and train at some restaurant, it takes a long period of time until you can actually serve food to customers.
As long as you are taught a recipe for a dish, you should be able to make it to some extent, but you still won’t be allowed to make it for customers.
Why is this?
The reason is that the restaurant has judged that you have not yet reached the “professional level of skill” to satisfy the customers.
Therefore, the chef in the restaurant will provide thorough one-on-one coaching until the skill is at a “professional level,” and bring it up to a level where it can be served in front of others.
This is another way to have a coach watch you directly.
In other words, those who are considered “skilled” are not limited to athletes, but also go to school or are taught by someone in a teacher-like role to acquire skills.
However, in the FX industry, for some reason, everyone tries to manage on their own.
It is a mysterious custom in the FX industry to begin with, and there are many cases in which the instructor does not try to teach one-on-one instruction but only know-how, so it is inevitable to say that most people try to master it only by self-study basically.
Moreover, it is particularly difficult to acquire professional-level skills in FX compared to other technical professions because of the peculiar and troublesome phenomenon of “uncertainty of outcome.
- What went wrong with this trade?
- What can I improve in the future to eliminate losing trades like this one?
- What are the common patterns in my own losing trades?
- Even in winning trades, are they theoretically wrong?
Due to the uncertainty of outcome, these points for improvement are often misplaced. As a result, the trader is left in a labyrinth without knowing “what part of the trade to fix or what part to improve.
This is the limitation of skill improvement that occurs when you are on your own.
Moreover, FX is a very tough world where all the money goes to the 10% winners.
If you do not have the determination to become a top professional trader, you will surely end up on the losing side of 90% of the traders, and your money will be squeezed out by the 10% of professional traders.
Therefore, if you are serious about becoming a professional winning Forex trader and becoming rich by earning consistently, I strongly recommend that you not only study on your own, but also receive one-on-one guidance from a professional trader who can guide you on how to improve your skills to suit your needs.
This way, you will learn and develop your skills much faster, and you will not waste your time.
The longer you are unable to win, the slower you will be able to earn money, and the loss will be even greater when you consider the profit you could have generated.
In addition, as the term “losing habit” suggests, continuous losing causes a decline in motivation and self-image, which leads to unnecessary pressure and stress.
This is also a serious loss because forex involves mentality.
Self-taught or self-directed traders often fall into this negative spiral, so having a professional trader directly instruct you from the early stage will definitely reduce the loss of time, profit, and mentality.
However, in the FX industry, there are few people who offer one-on-one guidance and other personalized services.
I myself thought this way during the dark days when I could not win.
“I wonder if there is a teacher who can point out my bad points and instruct me on the right way to do things…”
Unfortunately, I did not come across one.
I had to go through a lot of trial and error in practice to get to this point, but in the process I wasted over $100,000 and a lot of my time.
“Why is there no one in this industry to directly mentor me?”
I wanted to do something about the questions and frustration, so I started my own free one-on-one mentoring service.
If you are interested, please read the link in the description section and then apply for the service.
Conclusion
Why can’t you win in Forex?
Why do 90% of traders lose and exit?
We hope you now have a better understanding of why.
Never underestimate the world of Forex.
If an esthetician has no skill, cannot treat customers. If a doctor does not have skill, cannot save a life in surgery.
Without trading skill, it is 100% impossible for a forex trader to make money.
It is important to have this awareness and think that you will become a professional by acquiring trading skills.
And to acquire skills, two steps are necessary.
Step 1: Study and acquire the correct knowledge
Step 2: Practice based on knowledge
The most important step is Step 2, practice.
Many people have already done Step 1, which is to acquire knowledge, but too many people do not do Step 2, which is to practice.
Good soccer players are not people who have read a lot of how-to books. They are people who have practiced a lot.
Good chess players are not people who have read a lot of how-to books. They are people who have practiced a lot.
The same is true of forex trading.
Only those who have input knowledge about the market into their heads as a matter of course, and then have put it into practice to the point of professional-level skill can continue to win in this world.
Therefore, please do not stop with just inputting knowledge, but practice by yourself by repeating the PDCA cycle and making improvements.
Or, you can directly receive one-on-one guidance from a professional trader who has already won, and practice while receiving advice like;
- What is wrong with you?
- What can you do to correct your mistakes?
By doing so, you will become a professional trader who can get money from the market, and you will be able to increase your assets consistently every month.
I am very much looking forward to seeing how your life will change when your assets increase steadily every month.
- You may be able to travel abroad three times a year instead of once a year
- You may be able to give your parents a luxurious trip
- You may be able to go to a fancy restaurant every month
- You may be able to live in a bigger room
- You may be able to spend as much money as you want on your hobbies
- You may be able to spend more money on your children’s education
- You may be able to buy a luxury sports car
- You may be able to buy a luxury watch
- You may be able to quit your boring job and be free
- You may be able to free yourself from financial worries and have more time to relax
There is only one thing needed to realize such an ideal life, that is trading skill.
The good news is that it is neither gambling nor luck.
Because as long as it is skill, it means that anyone can get it if they work hard in the right direction.
Please don’t ever make a mistake and become a winning trader by acquiring the trading skill with the right knowledge and the right training to reach success.
Together, we will have a life of freedom!
