Do you know? At least 90 % of new Forex traders lose all their money within their first 3 months of trading. This means that they have no idea what the heck they are doing! They just jump into the market blindly with only hopes and dreams and rely on the flip of a coin to determine their success. 90% of Forex traders are uneducated and lack the basic knowledge of how the Forex really works. They rely solely on luck without LEARNING ANY OF THE BASICS AT ALL! And reliable sources suggest that up to 10% of these under- informed Forex traders end up losing their entire trading account!

So do we assume that most losing traders are just ignorant? Of course not. Most losing traders are quite intelligent. In fact, most people who inquire about Forex trading have above average IQ's. So why do they FAIL...? They simply lack the discipline required to learn about how the Forex actually works. They are initially overconfident and consider their quick 5 minute market analysis to be 100% correct. More often than not they are 100% WRONG!

Automatic vs Manual

Trading currencies for profit is always a tough practice and traders must be certain about many things. Traders can trade currencies manually or using automated trading systems which follow specific rules or can take a mixed way. Each of the above trading methods holds their own merits and demerits depending upon trading style, brokerage, leverage, currency pair trading, etc.Automated forex trading is done using robots which are created by high-level developers. These trading systems automatically generate signals, executes trades and place stop-loss orders. No human emotions like greed, fear, lack of confidence and hesitation interfere with the decisions; and all calculations are done using sophisticated mathematical functions. Other advantages include fast trading, around-the-clock trading, no need of trader’s physical attention, can execute multiple trades simultaneously, etc. Automated forex trading really favors day trading and swing trading as profiting from these trading styles require fast trading. But these systems must be programmed well to reap the success. Any malfunction of the program can seriously harm the trader.Manual forex trading is good for traders who are really experienced and can calculate things very quickly. Manual trading favors long-term traders who don’t want to interfere much with the short-term currency volatilities. Combination of both manual and automated trading is always a good option, as traders can program systems to finding trading opportunities and to generate signals and he can then manually decide, whether he wants to got for it or not.