A common factor in the forex trading community is that 90% of traders do not trade currencies. Not sure what a "failure", but I think that means they have finally after losing money trading stopped. So why should encourage learning about a market where 90% of traders lose money? Well, to answer this question, let's two reasons why most traders fail.

1 Live Trading with little experience.

I know many, many forex traders fail because they start trading live soon. In fact, I was almost one of the dealers in the category of failure rate of 90%.

When I was 24, I got a bonus check of $ 5,000 from the company where I worked. I learned about forex 3-4 months before, and had never traded real money before. But, in my ignorance and arrogance, I decided I was going to make money in Forex without problems and now I must start making money. I opened a live account with my $ 5000 and began negotiations. Less than a month later, was $ 800. I closed my trading account and decided I prefer more about Forex before I tried again. However, it was $ 4,200 a lesson that many traders simply can not afford to learn the hard way.

2 Debt.

The great thing about Forex is that it is the control of normal people like you and me lots of money. Without this benefit, you have millions of dollars (such as banks) forex trading before investing at all. But the result of leverage allows us to trade Forex negative leverage took money from many aspiring traders.

Many traders have the idea that risk 10% - 20% of your investment in a trade. Their thinking is that if only a handful of it is profitable, then they will double your money in no time. Unfortunately, most companies are beginners tend to lose money, even if its first operations are profitable only encourage short-term gains, the deadly practice of debt.

Therefore, the amount to risk their capital when you are in for each trading Forex? Well it depends on your trading style, winning probability, sampling, and many other factors. But professional traders can usually less than 1% of capital per trade. Why not professionals and we do not risk more?.