After spending nearly 2 decades of trading and losing nearly $2000.00 I've learned the reason why 95 percent of all traders fail. It's exactly the identical reason for virtually any company, why a few of these fail. Well here is what I learned.

1. Traders allow their feelings, greed, hope and assumption to consider over their trading. This is probably the toughest thing for a trader to do is to eliminate those items while in the Forex business. Did I state firm? Oh it is a company.

2. Lack of Eduion. Most traders (myself included) are extremely arrogant when they first begin trading. After a couple transactions they figure they understand all of it, but they've not gone through any course or school like http://www.babypips.com/school/. They have not gotten the proper eduion in any way. Well allow me to remind you, always get your eduion first, and eduion never ceases.

3. Undercapitalization. Most traders believe all they need is $100 or $200 dollars to begin the company but they're sadly mistaken. If you would like to start a company with Forex, I strongly advise that you begin with a MINIMUM of $2000.00. Oh, if you would like to use $100 or $200 to begin, then just use that as demo money. Consider it gone. But most brokers will allow you to begin with $5000.00 virtual currency (play money) to exchange with.

4. No egy. I know that some traders believe that they can begin a company with no egy in mind. I did that. That is one of the reasons I lost money. I had no plan, no goal. What the trader needs is a egy about how best to trade, when to trade, what time frames to use, etc. etc.. Without a egy there is nowhere that you go.

5. No rules. This is very important. Perhaps equally as significant as all the others, but the trader also has to earn a set of principles and then write them down. Without a set of principles you will most likely be making blind transactions and hitting stop-losses or margin call.

6. No discipline, no consistency. This was a big problem for me. At first it was difficult to follow all the rules since I had been so excited to earn money and that I was rushing to it all. The trader needs consistency and discipline to generate money in forex. Also, the trader needs patience. Do not worry, the money will come.

7. No money management and overleveraged. This can't be stressed enough. As it has been said many many many times, manage your risk while trading. I know I risk a bit more while trading, but my system tells me if a good trend has started. As long as that rule is followed by me about my trading money management principles are followed. But that doesn't mean that you can risk that percent too. A trader MUST risk hardly any when starting, perhaps 1 to 2% only. Once you get decent expertise in trading then and ONLY THEN you may increase your risk SLIGHTLY.

If anybody else has some suggestions or reasons why 95 percent of traders fail, please respond to this thread. Thanks.

Pierre (RedRobin)