90% of people trading forex will tell you that they are making losses in their forex trades. Out of this 90%, 85% of the victims are newbies {beginners}. As most people are making real great money in forex, lots of hundreds of people are also losing money. Being a volatile and high liquid market, forex trading is both a risk and great money making venture.

There are many reasons why you may not be making money through forex trading. Few of them will be discussed below:

1) Trending

Most successful traders will tell you that trading into a trend is the most and preferred forex strategy to make money online. The use of fundamental analysis for a long term trend works very well. The use of technical analysis tool in trending is also very good. Trending is the creative and detailed intuition in knowing which direction the market is going. Once you get the signal of a trend, it’s time to trade.

Most people that losses money (80%) in forex do not trade into a trend. In order to minimize your losses and to make more profits, always trade into a trend.

2) The use of High Leverage

The use of leverage is like a two edged sword. Its both a risk value and a high making means. The rule is the higher the leverage, the higher the money you make (if the market favours you). However, with this higher leverage that you have done in anticipation for great money revenue, the higher the chances to lose great amount of money also. So, my advice is to always go low on your leverage. I’d suggest that “slow and steady” makes sense than “rush and lose”.

3) Active Days

Though, forex market is a 24 hours a day market. But not all the days are active days. Most especially if you are a day trader, it’s important to realize active days.

The active days are Monday, Tuesdays and Thursdays. Other days are quite good but chances are that you will lose significantly on those days. To make consistent and steady profits, then always trade during active days i.e. Mondays, Tuesdays and Thursdays.

4) Your forex Broker

They type of forex broker that you are using matters so much to your successful forex trade I order to make money. I will not want to mention the name of any broker here, but do your research through forums and blogs.

Why? Some forex brokers uses unstable platform. Some of them do not allow quick execution of closing trade. It’s a serious issue, so make your research very well.

Failure to Demo Trade for at least 4-6 months

This development is very important. Always demo trade first.