So why do a large number of Forex Traders eventually fail? I was a failed trader, and here is why...When I started forex trading (many years ago now) I really believed that I would soon be dragging in the cash. Forex was, after all, a giant online marketplace where someone like me could hardly fail to make good easy money.

I had done my research, and I understood that over 90% of forex traders quickly fail, but I never believed for a single second that this would happen to me! If I took the time to study the best forex trading strategies and assiduously avoided the pitfalls, I'd soon be a top forex trader!

To start off I had invested a lot of money in the very best forex training course I could find, it was a complete set of 13 dvd's, and cost me in excess of $4500. I recall that there were over 13 hours of best-quality forex tuition, several useful software applications and some free forex signal software, and everything was already set up and ready to go with my passwords etc I also received an established spread-betting account.

Now that was very handy indeed, I could now take advantage of tax free trading!I also got bonuses like permanent access to the writer's own web site where I could connect every afternoon and review his daily reports. I could study his trades and hear his explanations (and sometimes his excuses), and learn how many pips he had made that day.

He usually made around 22 - 35 pips - most often trading the GBP/Dollar market. My reasoning was that anything he could do, I could do too! This was going to be very easy!The forex course covered every facet of trading, including preparation to trade, keeping records, no-money paper-trading, as well as the psychology of the forex trader.

I carefully watched the entire dvd set which took me about two days. After that, I watched some of the dvds again, mostly those covering actual forex trades and particular forex techniques. I was ready to begin.I opened and funded my spread-betting account (another $4,000 but hey, what the hell.). Oh, and I began to dream about the latest Mercedes and Ferrari cars - not long now.

That was a few years ago. So do I now have even one of the cars or the boats I dreamed about? Well actually - no! Have I made pots of money? Again, and very sadly, not so far! To be honest I've lost quite a lot of money! I do still retain the confidence I originally had in forex as a great way to make a really serious online income, because I've met and talked with such a lot of wealthy forex traders.

I still believe that I can do it because I've seen it happen repeatedly. I decided it must be my trading system, what else could it be?I stumped up even more money, I invested in the best web-based forex trading systems - after I had very carefully studied their testimonials and seen that other traders were making some serious money from them. I also bought even more books.

Forex trading books, forex training books, even books listing and reviewing forex systems. I even bought another forex training course and some financial guides, I studied day-trading systems next to longer-term trading systems - I was totally determined to succeed in making money in forex trading.

Did I make any money yet? No! But I began to suspect where my problem lay and why I'd failed so completely.

It really hate to admit it, but I felt I might be the problem! Little old me.I had come to realize that my own individual style and my own methodology, they were letting me down. Even when I was using a proven winning trading system, I would still lose money. And for a long time, I didn't even recognize it. I did even more research.

I have learned that it is possible to purchase a winning forex-trading system online for very little money, and that even a top training course can cost relatively little. There are a whole range of affordable forex resources and training out there online. It is easy to be ALMOST totally equipped to make serious money on the markets.

What does that mean in this context? What was I missing? What's the difference between a winning and a losing forex trader? How else could I become the total trader? It didn't take very long to get that question worked out!

Once I took the blinkers off I realized that it had to be me. I had to admit to myself that I am not nearly as clever as I thought - I soon identified a whole boat-load of personal deficiencies that prevented my success.

Words like resolution, concentration, dedication, honesty, self-discipline, all came into my mind. I had not used sufficient of any of them!I had got my hands on yet another book - well booklet actually. It was free (and worth every penny). It came as a bonus when I bought some trading software through my favorite forex trading software web site.

This little booklet didn't attempt to tell me anything about winning forex trading systems, it dealt entirely with the secret ingredient that is missing from the mental toolbox of many forex traders, and is probably the reason why the majority of them lose money. (Come to think of it, it's missing from the mental toolbox of traders in most other financial markets too).

So what did I learn? I learned that the problem is in my head! Like most forex traders I am incapable of sticking to any system I have learned. That's why I and most other forex traders fail. Luckily for me, my little booklet not only pointed up my problems, it also pointed out some quick (and blindingly obvious) solutions.

I'm trading profitably now.As a thank-you to the site owners, I've taken their little booklet and re-written and expanded it, and handed it back to them. They are still giving it away free to purchasers of anything from their site. The book is called The Missing Link, and as I said, it's still free and still worth every penny!


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Christopher Temple is a successful trader who writes often on Forex Currency Trading Systems his search to help newbies Learning Forex Trading Online. Try in the links to learn about his book.This article is available as a unique content article with free reprint rights.

The main function of the foreign exchange market is to support the trading of assorted global currencies. Although the majority of trades concern only a small number of currencies, including the U.S. Dollar, Yen, Euro, Swiss Franc, Pound Sterling, Australian Dollar, and Canadian Dollar, many other different types of currency are exchanged on a smaller scale. Over 90% of all exchanges on the forex markets involve the U.S. Dollar.

The forex market is, despite the popular impression, a composite of several contrasting markets, each of which sustains its own rules and regulations, with no one centred market in which all currency trading takes place. The major markets, the U.S., London, and Tokyo, open during different hours because of the different time zones. When the New York market opens, and while the European markets are still operating, is when trading is heaviest and nearly two thirds of the trading action happens during this convergence.

An individual exchange rate for a given currency does not subsist since there is no centred market. The bid and ask rates for a currency whilst normally reasonably close to each other, can, because of the over-the-counter (OTC) nature of the markets, deviate among dissimilar geographic markets and market makers.

Three letters express an international currency code for every currency and because the price of a currency must be applied in reference to another currency, it is displayed in the form XXX/YYY. The price of the British Pound in U.S. Dollars is recorded as GBP/USD, for instance. Acknowledged as the base currency, and the securest currency when the pair was made, is the first in the pair while the other currency is known as the counter currency.

Presented in decimal form the real prices themselves are normally rounded to the nearest ten-thousandth of a unit.

Close to $2 trillion is exchanged each day in the forex market and it comprises the largest market in the world. With more than three quarters of deals surviving less than a week forex trading is, for the most part, a high-risk, short-term market. It is a highly fluid market, a good deal more so than equities, with the many traders worldwide and the very high daily turnover rate.

The top ten most active traders, however, are responsible for nearly three quarters of total dealing volume. The trading activity that happens within the interbank market, which is formed by international banks, provide the market with bid and ask prices that are far closer than retail customers can get.In 1972, at the Chicago Mercantile Exchange, forex futures contracts, that are derivatives, were introduced and now make up around seven percent of the all foreign exchange volume.Something else that has also taken hold and is another popular hedging strategy is foreign exchange options.

Investors often buy these derivatives, which are contracts to purchase currency at a certain price on a future date, to counterbalance the decline in the price of a currency and any possible losses they might endure.

An additional means by which traders are capable of mitigating risk is through an exchange, in which both parties agree to switch one currency for another for a set period of time, and will then reverse the transaction after the period runs out.Amongst financial markets the foreign exchange market is without competition and is a fast-paced, international currency exchange. International companies, prominent banks and financial organisations will ensure its huge popularity continues and its growth is guaranteed into the future.

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