Why forex trading is so hard?

Before getting into why forex trading is so hard, you have to understand what is forex trading so you can clearly understand the difficulties and variables that surround the highs failure rate in forex trading.


What is forex trading?

Forex trading is the buying and selling of foreign currency to make via the forex market to make money #profit.

In Forex trading a trader must have money to put at risk in order to make money. The trader then exploited the market movement via trading strategy to make more money on what he or she had initially deposited.

This goes without saying that a trader should know “when” and “where” to buy/sell in the form of a forex trading strategy.


Is forex trading easy or hard?

A trading strategy should entail an entry and exit reasons, along with risk management. All together, doing this repeatedly over a period of time will [should] result in account growth #profit.

Bottom line is, with a profitable trading strategy, forex trading should be easy, right?


To be more precise, trading itself is easy but is what is required from a trader that makes it hard.

why is forex trading so hard?

Among the reasons why forex trading is so hard are mostly due to the mental demand it requires from an individual. This is implying that the physical interaction needed is small and meager in comparison to the mental attributes needed to be successful as a trader.

Among such attributes are: 

  1. To be focus
  2. To have confidence
  3. To be emotionless
  4. To be discipline
  5. To have patience

List not exhausted.

In today’s world, the average person struggles with at least two of the stated above, let alone the ones that were not mentioned.

5 reasons why forex trading is so hard

1. To be focus

A trader must remain focus especially when it comes to doing technical analysis for a trade setup. Overlooking the smallest detail can cause he/ her to make the wrong decision, thus leading to a bad trade.

Maintaining focus is one of the many reasons why forex trading is so hard.


2. To have confidence

Confidence is the key to successful trading. Having confidence will steel your resolve about a particular trade setup. This unwavering mentality will not allow the false movement (#fluctuation) of the market to tempt you to close your trade unnecessarily without a valid reason, whether it is in profit or not.

Having confidence in knowing what you are doing along with your trading strategy will pave the way to become among the top 1% successful traders.

Because of this, market movers will always be testing your resolve by temporarily pushing the market against your favor creating candlestick reversal patterns for traders to opt-in the wrong trade or close it in a loss. This can result in a series of loss, thus making lack of confidence one of the reasons why forex trading is so hard.


3. To be emotionless

This is one of, if not the biggest reasons why forex trading is so hard. It is of utmost importance that you [as a trader] can control your emotions or they will force you to do things that you will later regret such as entering (opening) and closing trades you were not supposed to mostly in the form of revenge trading due to anger. 


  • fear of loss (due to losing streak)
  • Greed (from a winning streak)

Also, one of the main reasons why traders are so emotional when trading, is because they’ve invested money that they are relying on such as their life savings, tuition fee, grocery money, loan, etc. As such, losing it can put them in debt or an even more dire state.

PRO TIP: To avoid this, it is HIGHLY RECOMMENDED to only trade money that you are comfortable losing.


4. To be discipline

Being discipline carries as much weight as being emotionless, which also is one of the biggest struggles traders struggle making it one of the reasons why forex trading is so hard.

To be more accurate, being discipline in forex trading means requires a lot of mental fortitude which will prevent you from doing this you are not supposed to. In addition to that, it forces you to remain within the boundaries of your trading strategy


5. To Have Patience

People often believe that profit is made overnight, while most if not all traders wish that to be the case, they are sadly mistaken (unless they are talking about binary options).

A trader must remain patient and allow the market price to do what it does best, which is to move and down.

Think of the market as a living organism. As a living being, it needs to inhale (impulsive move) and exhale (pullback). With that analogy in mind, the market cannot remain in an upward/downward impulsive move forever. 

It has to relax (pull back) at one point before making another push in the desired direction.


Why do most forex traders fail

Most forex traders fail for a lot of reasons, most reasons are general while a few are specific that only affect that himself. Among the general reasons why most forex traders fail are:

  • Over leveraging their account
  • Improper risk management
  • Too emotional
  • Their strategy needs revision/ adjustments
  • Stop-loss too big (falls under the category of improper Risk Management)
  • Lack of patience

List of reasons why forex traders fail

1. Over leveraging their account

Leverage is a double-edged sword, it can double your earnings while at the same time double your losses. Speaking from experience, a 1:500 leverage should be the maximum leverage to choose, especially for a beginner.

2. Improper risk management

Risk management makes up the majority of a trading strategy, if not used properly, a trader may blow his/ her account before realizing any profit.

why forex trading is so hard
Trading multiple correlated pairs. #Improper Risk management

3. Too emotional

Greed, fear, anger are some of the few main emotions that tend to come to play in forex trading. Regardless of the winning or losing streak a trader is on, it is best to remain within the boundaries of his/ her trading strategy no matter what.

4. Their strategy needs revision/ adjustments

A trading strategy should entail the place of entry and exit for any given trade. If your strategy is causing you to enter buys (long) at a resistance, and sells (short) at a support, then it’s best to revise or change that strategy completely.

Chapter 29: How to create forex trading strategy of the free online forex trading course is a guide that will help anyone create a profitable trading strategy.

Video: How to create a profitable trading strategy part 1

How to create a forex trading strat...
How to create a forex trading strategy | break and retest forex strategy

5. Stop loss too big (falls under the category of improper Risk Management)

Those it is not mandatory that your stop loss is always bigger than your take profit, but having too big of a stop loss can be a serious problem. If your take profit is smaller than your stop loss, then you need to maintain a very high accuracy. The bigger the stop loss, the higher the accuracy should be.

6. Lack of patience

A trader needs to have patience at all times. There will be trades that will hit take profit with the same day, while there are trades that will take days to weeks before closing.


Why is forex trading so easy?

If you are academically inclined, it can be easy to grasp the knowledge and the “know-how” that is needed to be a successful trader. In other words, while learning forex trading, the theoretical part is easy, but the practical hard is what makes forex trading so difficult.

How long does it take to learn forex?

For the theory part of forex trading, it takes less than a month to fully understand and grasp it all, however, getting the hang of it is another story by itself.

Some people have been practicing for years and still yet to be profitable. However lucky for you, the course mentioned above is simplified in a manner that will lessen that learning time tremendously.

Additionally, Investopedia.com provided valuable insights on why forex trading is so hard complementary to the information provided here.


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