In today’s quest for quick money, individuals are drawn to many shortcuts without fully grasping the complexities and risks involved and one of the popular shortcuts is “online investments”. The allure of rapid profits often overshadows the complexities and potential pitfalls of such endeavors.
When making any kind of investments, we often see a disclaimer “ Investments are subject to market risk, please read the terms and conditions carefully before investing”. But the question is do we really take this disclaimer seriously? My experience says most investors – DON’T. A significant drawback of these disclaimers or warnings have no quantification if you can lose 5% or 50% or 90%, these are very general and do not really hit home.
Among the various online investment avenues, FOREX TRADING stands out as one of the most popular choices. Studies suggest that there are over 14 million active online traders participating in a market valued at around $7 quadrillion per day. One might think, given the liquidity in the forex market, it will be very easy to make money but reality is quite the opposite. Day traders, in particular, face a daunting failure rate of around 90%.
Despite being aware of the harsh realities of the forex market, investors often plunge into these risky ventures without hesitation, ultimately risking their hard-earned capital. The question then arises: why is the failure rate so high? Several key factors contribute to this alarming trend and some of them are:
- Emotional Trading
- Risk Management
- Education and Knowledge
- Discipline
Addressing these factors requires a commitment to ongoing education, the development of sound risk management strategies and the cultivation of emotional resilience. By acknowledging and mitigating these challenges, investors can enhance their chances of success in the forex market. So, are you one of these investors? Leave a comment to share your trading journey!
Read our Next Blog for insights about high failure rate in the forex market!
