Forex investing is as popular as it is today because of the low barriers of entry, almost 24/7 access to the Forex markets, and the ability to capitalize on huge amounts of leverage – turning small amounts of cash into big profits.
At the same time, though, if you’re not smart, if you’re not strategic, and if you’re not deliberate with your Forex trades it’s not hard to find yourself blowing through hundreds, thousands, tens of thousands of dollars (and maybe even more) faster than you ever thought possible.
This leaves a lot of new – and some seasoned veteran – Forex traders thinking about quitting the game altogether. Are you wondering “should I quit Forex” right now?
You should only quit forex if you have truly exhausted all possible options when it comes to progression. The choice to give up on forex trading is very personal and depends mostly on situational factors, such as other commitments and financial situation.
Should I Quit Forex?
Making the decision of “should I quit Forex or not” is a very personal decision – but there are a couple of things you can ask yourself to make heads or tails of your situation right now.
Have You Been Trading for Years and Still Aren’t Making Any Money?
One of the most important things you need to ask is whether or not you been having any real success in the Forex markets.
Some people (like we mentioned above) get pulled into Forex because of the promise of easy access and almost unlimited profits.
They jump right in with both feet, never really understanding that Forex success demands strategic investments and a lot of dedication.
If you’ve not been having any success in the Forex market – especially if you’ve been in for a couple of years and have yet to turn a profit – this might not be for you.
With that being said, it’s important to understand how long it takes to learn forex and manage your expectations. It actually takes on average over a year to learn the ropes, let alone reach large levels of profitability.
Do You Plan Your Trades, Journal Your Wins and Loses, and Adjust as Needed?
Another tip that Forex investing might not be for you is if you sort of fly by the seat of your pants, trading Forex on a whim without ever planning your moves, journaling your wins and losses, and adjusting your strategy as necessary.
The most successful Forex investors are incredibly deliberate and intentional with their trades.
They think everything through from start to finish, execute their strategy, and then record whether or not their decisions were profitable.
More importantly, though, they adjust on the fly using this information to better inform their next investing decisions.
I’d highly recommend using one of these top forex trading journals to better understand your behaviours within the markets.
Are You Bouncing from One Trading Strategy to Another with Little Rhyme or Reason?
One reason that a lot of Forex traders question “should I quit Forex” is because they bounce from one trading strategy to another without any real rhyme or reason.
If you don’t have a rock solid foundation of reliable fundamentals to build your trades off of it can sort of feel like you are swinging in the wind a little bit.
Don’t chase every new Forex trend.
Don’t bounce from one strategy to the next – at least not without any thought or reason behind the shift and pivot.
You’ll want to quit Forex altogether when picking a single path or approach to trading and then executing for a few months (or even a few years) might have made a world of difference.
Are You Still Having Fun Trading Forex?
While Forex can be incredibly demanding and time-consuming, it can also be a lot of fun.
There’s just something about watching currency markets around the world shift and change based off of the goings-on of the world around us. There’s also a ton of money that can be made in Forex, too.
If you aren’t having any fun trading anymore, and instead have found yourself beginning to dread opening up your Forex broker account, and might be time to pull the parachute and get out.
Should I Change Forex Strategy or Quit Trading?
Before you make the decision to quit Forex altogether, though, first consider changing your strategy.
It might make all the difference.
No, you shouldn’t bounce from one strategy to the next (as we mentioned a moment ago). But if what you’re doing isn’t working – and hasn’t been working for a while – it may be time to shake things up before you abandon Forex altogether.
How Effective is Your Strategy Right Now?
The first thing you want to do is really track and measure how effective your Forex strategy has been up until now.
If you realize that your Forex strategy hasn’t really been working for you (or that you haven’t really had a Forex strategy at all up till now) it’s probably time to give something new a try.
Are You Getting Closer or Further from Your Goals?
Secondly, you need to think about whether or not you are actually getting closer to your goals or are getting pushed further away.
Every move you make in Forex may not be a winner. But it should inform your trading, help you make smarter moves in the future, and inevitably get you closer and closer to your Forex investing goals.
If that’s not happening it’s time to try something new, too. There are a huge amount of good forex courses out there to find and implement new trading strategies!
How Many Forex Traders Fail and Quit?
At the end of the day, a lot of Forex traders are going to fail – and a lot of them are going to quit because of it.
In fact, some research into Forex trading behavior shows that 70% of all Forex traders are going to drop out of the market within the first five years.
If you don’t want to be part of that statistic, though, you’ll want to make sure that you are doing the right things.
- Undisciplined trading and trading on a whim
- Unplanned trading, trying to jump from one Forex fad to the next with no rhyme or reason
- Locking yourself into a static approach with the Forex market, forcing you to have an inability to move is the market does
- Unrealistic expectations that could have you wanting to quit Forex when you are on the verge of a breakthrough
- Unrealistic or poor risk management, not recognizing bad trades before you make them – and especially not learning from bad trades after you make them
… And at the end of the day remember that Forex success depends largely upon you, your strategies, and how you would just to the realities of the Forex market.
Keep these things in mind and you’ll never have to worry about whether or not you should quit Forex trading!
In Summary – Should You Give Up On Forex Trading?
In conclusion, you should only really give up on forex trading if you’re sure that it’s not for you, or your personal circumstances require you to remove yourself from the industry. Otherwise, you should always be willing to try a new strategy if your old one isn’t working, and constantly reevaluate your progress towards your goals. Finally, remember that most traders do fail – but that doesn’t mean you can’t be one of the successful minority. Just make sure you’re doing everything right!
Have you thought about giving up forex trading before? Let me know in the comments below..