They say over 95% of Forex traders always lose. But I say it is even 99.99%, not 95%. It is the same with stock traders. They wipe out their accounts several times, and then give up on trading. What are the reasons?

There are so many reasons behind this:

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1. Many Forex traders open a live account and trade with real money, before they know the trading basics properly, and before they learn what trading is all about. They do this even before they become a consistently profitable demo trader: How to Become a Consistently Profitable Forex Trader

How can you start trading with real money while you are still losing with demo money and on your demo accounts? Why do you think that you can make money on your live account, while you can’t make money with demo account?

Even those who have become consistently profitable demo traders will lose when they start live trading, because emotions start taking the control again, when they deal with real money, especially if their live accounts are opened with the money that is important to them or they cannot afford to lose it, which is another big mistake.

This is what you must do:

You should master the trading techniques, and become a consistently demo trader at least for one year. I mean you should become able to make profit consistently, even as low as 0.5% per month, but consistently, every month, and at least for one year. Doubling your account this month, and then losing all the profit you have made the next month doesn’t equal consistently profitable. Or, making a 50% profit this month and then losing 60% the next month doesn’t mean you are consistently profitable, even if your account becomes positive at the end of the year.

Consistently profitable trader means you should be able to make profit, even as low as 0.5 or 1% per month, every month, at least for 12 months in a row. Your positive trades must be bigger than the negative ones, or at least the same size. If your losses are big and your profits are small, then your account is at risk, even if you succeed to become profitable at the end of the month.

Everything should look managed and and controlled on your account, and a professional and experienced trader must confirm that you are consistently profitable, by checking all your positions, profits and losses.

Only in this case, you are a consistently profitable trader. And, you should achieve this with a demo account first. You can’t start doing it with a live account when you haven’t done it with a demo account yet. If you don’t believe me, just do it and start trading with a live account, and you will see. You will be back to demo trading after losing a lot of money or wiping out your account.

It has happened a lot on this site that someone leaves a comments or emails and says what we say is not true, and for example, day trading with the shorter time frames is OK, and it doesn’t cause the traders to lose. And, they say they are extremely profitable. They say we are lying and we are not professional traders. But when we ask them to send us their last two years of track records that show that they have been profitable during the past 1-2 years, they disappear 😀

It has never happened that even one of them replies and sends their track records. It means it is them who are liars, not us.

So, don’t be fooled by the brokers ads and those who sell trading systems and courses. Market maker brokers are after your money, and they love to see you wipe out your account, because your money will directly go to their pockets. They don’t care, if you open a live account, before you become a consistently profitable demo trader. They don’t care about you. They care about your money that is supposed to go to their pockets.

The other group are crooks who sell trading courses, while they have never traded in their whole life. Or, they are affiliated with the market maker brokers and want to push you to open live account as soon as possible. It is not bad to be affiliated with brokers. It is bad when you push people to open live accounts while they don’t even know how to trade.

So, long story short…

Don’t open a live account before you become a consistently profitable demo trader the way I described above.

Even when you open open a live account, first it has to be as small as possible. Then, you need to repeat your success with this small live account for one more year too to prove that you can trade with real money exactly the way you trade with demo money. If you open a big live account, you will wipe it out, even if you have been a consistently profitable demo trader for one year or more.

These are the secrets that only professional traders tell you 🙂

2. Don’t try to hit the top and bottom of the markets. This is stupid. You should follow the trends. You should wait for the continuation trade setups to follow the trends. You can locate the real and strong reversal trade setups only when you are really experienced and skilled and you know lots of things about the markets, Candlestick Patterns, Fibonacci, Elliott Waves, etc.

This is what I have explained in my last video. Please make sure to watch it. Also, please make sure to Subscribe to Our YouTube Channel.

Now… let’s see what is going on with the markets 🙂

Before you read the rest of this article, please note that this is NOT a trading or investment advice and we are not trading and investment advisers. We are just sharing chart analysis techniques. You understand that you buy/sell/hold at your own risk. Also, please make sure to read our terms of use and privacy policy.

EUR/USD

Click Here to watch the video of this part that starts from 02:33. Please like the video 🙂

I hope you had the chance to watch this video that I talked about EUR/USD and also USD/CHF and some other markets.

Below is EUR/USD daily chart. Yesterday, I talked about this bearish candlestick and I told you that it has formed a strong bearish engulfing pattern, but it doesn’t mean that you have to take a short position, because the market is strongly bullish and it seems that it wants to go sideways for a while. At the same time it is trying to break above a resistance line on the monthly time frame
and that is why the market is hesitant and is going sideways. As you see Bollinger upper and lower bands are getting close to each other, and it seems that it is forming a Bollinger Bands Squeeze pattern like something that it has already formed long time ago:

Still Losing in Forex

Currently, EUR/USD is testing a strong resistance line on the monthly time frame, and as long as this market hasn’t decided about this resistance line, I mean it hasn’t either broke above it or hasn’t formed a sell signal below, we have to be careful, because one candlestick can be bullish and the other one bearish on the shorter time frames like daily:

USD/CHF

Click Here to watch the video of this part that starts from 06:08.

GBP/USD

Click Here to watch the video of this part that starts from 07:22.