Why 90% of Forex Traders Go Bust

Why 90% of Forex Traders Go Bust
Believe me when I tell you that 90% is a conservative estimate. Some sources have it as high as 99% of traders losing their initial starting capital and I have also read that not only do over 90% of them lose their money but also 10% actually go bankrupt.Why is it that so many traders fail? It is not because they are stupid. In fact statistics show that the majority of traders are well educated, have above average incomes and are generally highly motivated.So why do so many fail? Simple. Lack of trading education.By education, I don't just mean learning how RSI works or drawing lines on a chart. I mean thoroughly educating yourself in all aspect of your chosen profession. Educating yourself on the correct psychological approach to the market!Educating yourself in the correct money management techniques relative to your account size. Educating yourself in the correct entry and exit methods for the trading style that suits you.This friend is where I hope to be of some help. I don't have all the answers nor do I profess to be some kind of guru, but I will do my best to point you in the right direction.New traders think they can trade consistently with an 80% accuracy. They think they can turn $1000 into $100,000 in six months. They think they can predict turning points in their given market to within minutes. They think they can buy a system that is 100% accurate. They even think they will quit their jobs and make a living full time after a few months of trading.What's the reason that so many new traders believe that trading is an easy way to make money? Propaganda!We are continually bombarded in magazines, emails and the general media by claims of making astronomical amounts of money by just applying the vendor's latest method or system.Trading is not an exact science. You can't do X and get Y every time. It is as much an art as it is anything else. There is no magic formula.Trading is all about probability. It is the art of correctly applying a set of carefully thought out rules and allocating the probability of that event to result in success.Each trade is an independent event. The market does not remember if you lost or made money the last time you traded.The way you approach the market psychologically has as much to do with your success as any trading plan.Money management is crucial if you want to have any hope of becoming a successful trader.Matching a method of trading with your personality is the only way you will ever feel comfortable in the markets.An adequately funded account is necessary not only to be able to take the trades you want, but also so you don't feel every trade is a live or die situation.The journey to the road of successful trading will make you confront your deepest fears. Your armor on this journey will be confidence, knowledge and believing that you can achieve your dreams.Never, never equate your success or failure in the markets with who you are as a person!