Here are some insights into the commonly cited reasons why forex and CFDs traders may lose money based on historical information. It’s worth noting that individual trading outcomes can vary, and these reasons are not applicable to all traders. Here are some factors that contribute to the reported high failure rate: Lack of Education and Knowledge Forex trading requires a deep understanding of market dynamics, technical analysis, fundamental analysis, risk management, and other essential concepts. Traders who enter the market without sufficient education and knowledge may struggle to make informed decisions, leading to losses. Join our community and get help and support. plus we provide free weekly trade setups to help you understand and navigate along your journey Ineffective Trading Strategies: Many traders employ trading strategies without thoroughly testing or understanding them. Relying on hunches, rumours, or unreliable sources can lead to poor trading decisions and losses. Successful traders typically develop and follow well-defined strategies based on research, analysis, and back testing. Its important to have a well defined trading plan before you start.  Emotional Factors Emotional decision-making can significantly impact trading outcomes. Greed, fear, and impulsive behaviour can lead to irrational trading decisions such as chasing losses, overtrading, or holding losing positions for too long. Emotional discipline and the ability to manage emotions are crucial for success in forex trading. Insufficient Risk Management Proper risk management is vital in forex trading. Traders who fail to implement risk management strategies, such as setting stop-loss orders, position sizing, or using leverage responsibly, may experience large losses that can wipe out their trading accounts. Lack of Adaptability Financial markets are dynamic and subject to constant changes. Traders who fail to adapt their strategies to evolving market conditions may struggle to generate consistent profits. Flexibility and the ability to adjust trading approaches based on market trends and volatility are essential for success. Trading Addiction or Overtrading: Some traders develop an addiction to trading or become excessively active in the market, resulting in impulsive and poorly planned trades. Overtrading can lead to increased transaction costs, reduced focus on quality trades, and ultimately, losses. Start today with a demo account and learn these principles 

There have been studies and research conducted on why humans tend to prefer learning from experience rather than from readily available information or existing knowledge. This phenomenon is often referred to as the “experiential learning bias” or the “experiential effect.” Here are a few key insights from relevant studies: These studies, among others, highlight the role of cognitive biases, subjective experiences, and the limitations of human decision-making processes in driving the preference for experiential learning over readily available information or known knowledge. It’s important to note that these studies provide general insights into the topic, and individual preferences and behaviours can vary. For a more in-depth understanding of this subject, I recommend exploring the specific research articles mentioned above or conducting further research on related studies in cognitive psychology and behavioural economics. click here for a list of highly regarded books in this topic for free trade setups join our weekly newsletter Subscribe * indicates required Email Address * /* real people should not fill this in and expect good things – do not remove this or risk form bot signups */