Should you quit forex thinking it’s a zero-sum game? Is forex a game, Or business? Is losing essential for winning? Why do I keep losing forex?
It would be unfair to call forex A GAME. It’s a BUSINESS where both winning and losing go side by side. This post aims to give arguments against and in favor of the statement: Forex Is Losing Game.
Yes or No both, it’s losing for traders who join it without a plan, discipline, and self-control. Using high leverage kills. It’s not losing for those who consider it a business rather than a game. It’s winning for those who struggle on the right track with discipline and consistency.
It all depends on how well you understand forex. To be a loser is half more in your own hands.
It’s up to you to make it winning or losing. Let’s read out the logical arguments that go against calling it a losing game below.
Why Forex Is Not A Losing Game: 3 Arguments
There are few arguments in favor of the statement that forex is not a losing game.
Let’s discuss them briefly:
Forex Is Not A Game; It’s A Business
First of all, let me clear this confusion that forex is not a game. It’s a business. When traders consider a game, it behaves like a game.
As a result, they lose it blaming forex. The reality is that if you consider it a business, you can better understand its business model.
Not all traders are failing.
One more argument in favor of forex is that not all traders are failing in it. Many traders are earning a decent amount.
Some professional traders are even living on trading. If it is a losing game, it must be a loss for everyone. Why are some traders not losers?
Your Failure Is in Your Hand
In forex, many options stop you from failing, such as stop loss and take profit. It’s up to traders to use such options smartly.
When you can stop your money from losing, how can you blame forex as a losing game? Your success is 75% or more in your hands.
Why Forex Is A Losing Game: 7 Arguments
There are so many reasons for saying forex a losing game. Those who think it is a fast-money-making scheme always consider it a losing game.
Let’s read the arguments that makes forex a losing game:
Forex Is Losing Game When Traders Use Leverage Carelessly
Leverage is a factor that’s not bad itself. But how traders use it makes it worse, actually. If not used smartly, it can wipe off your account in a moment.
You may not be able to trade if you use high leverage. As compared to stocks, people don’t use leverage here. If you love your account, don’t risk more than 1% or 2% of your average trading capital.
Forex Is a losing Game When Traders Ignore Risk.
Every expert trader knows that to protect his reward, he must have to control risk factors. Not every trader tends to overtrade. When inexperienced traders overtrade, they lose money instead of making more rewards.
This is because overtrading pushes traders to risk too much. The greed factor also gets uncontrolled in trading frequently. Moreover, many traders don’t recover from consecutive losing and do not know when to stop trading. So, they quit saying forex is a losing game.
Forex Is Losing Game When Traders Don’t Follow Plan.
Fresh traders are mostly impatient. They want to make fast money. They spend little time on demo and developing trading disciplines. They enter into a real money account without having a proper trading plan.
They don’t have a clear picture in their mind about when to enter the trade and when to exit. They even don’t have any plan about growing their money. In turn, forex behaves such traders badly. They have too quite unrewarded.
Forex Is Losing Game When Traders Fail to Find Authentic Broker
The most unfortunate reason for failure in forex is falling into a broker’s scam. This type of failure ratio is increasing day by day. Many traders fail when brokers manipulate prices and start trading against them.
Brokers can make traders lose money by not executing stop-loss orders at the right time. They use software that can slow down the server right when the trader wants to put stop loss.
When this happens, traders never trust forex. They give up and stop trading. They blame forex for this scam instead of the broker.
It’s Losing When Trader Consider It Quick Rich Scheme
Time and patience are keys to success. In forex. Those who consider forex as a quick rich scheme may fall in frustration soon.
When they give it a try and find that the reality is quite the opposite.
They fail to understand the trading business. They don’t accept that success in forex is a long way. Such traders would quit sooner.
Forex Is Losing Game When Traders Lacks Disciple
Discipline in trading schedule and trading style is vital for success in forex. It’s challenging to develop such a disciple. The trader has to fight his emotions for a long time.
By discipline, we mean to do what you need to do in trading at the right time. It’s not about competing with what others are doing. It’s all about moving yourself in the right direction, knowing what is right for your trading style.
Forex Is Losing When Traders Fail to Control Emotions
Trader’s psychology makes this game losing or winning. When traders fail to get mastery over emotions, they fail. Two things such as greed and fear, are a major threat to your trading plans.
Most traders with plans lose as they fail to control emotions. When you are trading on the surface, your emotions are your worst enemy.
Why Do I Keep Losing Forex
Many traders ask why do I keep losing forex? There are many reasons for continuous failure in forex. Maybe you are repeating the same mistake.
Maybe your strategy is not right. Maybe you need a mentor to guide you about the mistake. Maybe your broker is making you lose. Maybe it’s your emotions that are responsible for consecutive failure.
What to do to avoid losing? First, analyze your performance and try to find out what’s your mistake. If you fail to pick your wrong point, get the help of an expert mentor.
They will guide you about your weak areas. If you think you can self-analyze your weak points, it’s good to do it yourself.
Can You Lose All Your Money in Forex
Yes, you as a trader can lose all your money in forex. Your account can turn in zero profit. All of your capital can wipe off with your mistakes.
So, always try to be on the safe side as it’s risky. About 70- to 80% of traders tend to lose money every year in forex.
Is Forex Going to Last?
Yes, forex trading is going to last forever. It’s a huge marketplace that can never end. As long as world markets are there, forex will be there forever. It can shut down, crash but it will never go away.
In the light of both arguments, you can guess the right situation. There are so many arguments that hold forex as a losing game.
On the contrary, many arguments still hold that forex is not a losing game.
I would say it’s both losing and winning business. If you say it’s not losing entirely, you are wrong.
Similarly, if you think it’s losing at all, you are also wrong. It’s something in between losing and winning. That’s waiting for success, and keep trying. Best Luck!