Why Most Amateur Traders Fail

There is a consistent theme that seems to derail and is one of the reasons why most amateur traders fail. Forex traders fail over and over again and is has to do with the complexity of the method. The many reasons why most amateur traders fail one is because they need the system or method to be complex and if it is not they discard it.

Usually when a trader gets a new method they look for the big part that shows them the Holy Grail and the thing to show them how to make a fortune. At the same time the trader throws out risk, and money management, discipline and every other thing necessary to make the method work. Another valid reason why most amateur traders fail.

The amateur trader fails to see anything but the “secret” they think is in the method somewhere they believe the mysterious Forex market will be revealed and they will be in charge of every trading pair.

Of course you can imagine the disappointment they set themselves up for as they work through the system and some of it is stuff they have heard before and wouldn’t practice. Amateur traders then look at the method and say something like this: it’s too simple so it must not work at all.

Sometimes the trader will look at the method and decide that the indicators are simple and used in an uncommon way. So they must not be any good because it is simple and the trader is looking for it to be complex and expects it to be complicated to work. So when the method is simple they often say “I could have done that” and then they give up on the method.

Why most amateur trader fail because he/she makes this mistake don’t you make it because it can lead to ongoing of evaluating method after method and never recognizing a good one because you over complicate them. You need to take the time to learn how simple trading can be.

Most trading methods are not complicated they are simple and everyone can apply the few rules that make it up and are applied in an uncommon way. Computer geeks and big banks use and like things complicated so if you are neither then forget it take the simple method that works nice and easy. Remember if you have a hard time understanding a method or system how are you going to apply it anyway.

The thing about trading is you want it simple and proven then all you have to do is take action and make it work for you. When you are acting don’t skip ahead to things that look juicy be sure to master the setup, entry, and exit rules. Learn how to protect your capital with stops and trade management. If your method is proven, powerful, simple and you take action by following it precisely then you can expect to achieve success in your Forex trading.

The key to getting and edge in the Forex markets is having a simple powerful rules based method using just a few indicators in an uncommon non text book way. Now you know why most amateur traders fail and you should be in a position to correct the issue.