If you have tried forex trading before you know how hard it can be to be a profitable trader. The Forex market is the largest financial market in the world and attracts traders from every corner of the world. Many end up failing and losing money constantly, but they never get to understand why they lost and why it is so hard to be a profitable forex trader.

In this article, we will explore the main reasons why forex trading is so difficult so that you know where you need to keep your energy and focus in order to be a successful forex trader.

Is forex trading very hard?

While it is easy to trade forex, it is hard to be a profitable forex trader. This is mainly because the forex market is the largest in the world and it attracts millions of traders. 

There are several forex trading challenges that explain why it is so difficult:

  • It requires extreme trading discipline
  • It can lead to overtrading
  • You need to have a well-funded account
  • Unless you use margin, your returns will be low
  • It requires a strong trading psychology
  • You need to pay attention to macroeconomics
  • It requires a good strategy and plan 
  • Your forex trading strategy always needs to be updated
  • You need to control your emotions

Trading discipline

One of the main reasons why forex trading is so hard is that you need to have an extreme level of trading discipline. Forex trading relies heavily on leverage to generate returns. Currencies tend to have some volatility but when compared with stocks their price tends to be much more stable.

Therefore in order to generate sizeable returns, you need to use leverage. Using leverage, and especially on forex requires you to be extremely disciplined, in how you place trades and manage them. Otherwise, trading could push you into debt.

Knowing when exactly to place a trade, and when to exist is crucial, as well as taking advantage of stop losses to prevent you from losing a lot of money. You also have to control the urge to frequently trade which can turn into overtrading.


Since the forex market tends to have smaller moves than the stock market, it is far too easy for traders to get carried away, and start putting too many trades at the same time. This is a major risk, and you should stay disciplined during your trading. You will avoid placing bad trades for no apparent reason.

Well-funded account

Another important part of forex trading is to have a well-funded account. This means that you should not risk a significant part of your portfolio into a single trade or a few. Forex trading is much more similar to gambling than regular investing and trading. 

This means that you will make money as long as over time you place more profitable trades than unprofitable ones. You also need to make sure that you cut your losses early. Therefore you need a sizeable account so that you do not have to use that much leverage, and you can make enough trades. Make sure you do not risk more than 1% of your own capital on any given trade.


You can trade forex without leverage, however, due to the nature of the market, and how currencies tend to be very stable your returns will be low. The need to use leverage to boost the returns forces some people to either take too much leverage or do not apply the best risk management.

Leverage is always a double-edged sword, and if you are using it you need to be extra careful not to blow up your forex trading account.

Trading psychology

Not only does it require an extreme amount of discipline, but forex traders also need to have the right trading mindset. Due to the nature of the forex market, and the use of leverage you need to be able to deal with consecutive losing trades. Make sure losses do not affect the way you are trading and your strategy.


In order to be a successful forex trader, you need to pay attention to the news. Constantly reading what is going on in the world, will give you trading ideas, and you start to understand it better you will see why some currencies go up and down. 

This is a lot more demanding than trading stocks, where you just need to pay attention to some companies, and how the broader market is doing. 

Good plan

The forex market is the largest financial market in the world, with millions of participants. This means that in order to be successful you need to really be on top of your game. That are countless professional forex traders that will eat your lunch if you do not have a good enough plan and strategy. 

Besides the plan, you need to have an edge. This means knowing something that most of the other market participants do not know. Eventually, you can also predict movements, but all of this requires a lot of hard work and dedication.

It is also open 24 hours a day, except on weekends. It is also extremely difficult to predict how a certain currency will move in relation to another, especially in the short term. Here are

Updating your plan and strategy

Due to the high level of competition among forex traders, you need to be able to constantly update and revise your strategy and plan. Adapting it in the best way possible, to avoid strategies that are being used by other traders.

Control emotions

Another reason why forex trading is so difficult is that you need to always control your emotions. This requires an extreme level of commitment, and discipline that only a small percentage of traders is able to apply.

Is trading forex stressful?

Forex trading can be extremely stressful, and you always need to be disciplined and keep your emotions in check. Your trades should be carefully planned, and according to your plan strategy. Do not let your emotions take over, as it can spiral into several losing trades.

How hard is forex trading?

Forex is extremely hard, and it is one of the reasons why it is estimated that only 10% of traders break even or make money. This means that in 9 in 10 forex traders will be losing almost on every trade. Although there is no way of actually confirming this, and the percentage of successful forex traders might be slightly lower or higher, it is still very difficult to be a profitable forex trader. So, that could be a reason why many traders look for the top Forex brokers on topbrokers.com or another reputable source. Brokers have a wealth of knowledge and expertise in the forex market and can provide invaluable insights and advice on how to trade successfully. By working with a top broker, traders can gain access to cutting-edge trading tools and platforms, as well as personalized support and guidance to navigate the complex world of forex trading. However, whether you use a broker or not, forex trading is still not easy.


We have seen how hard forex trading can be, and it shows that it takes a lot of effort, studying, and dedication to be successful. This should not deter you from trying, but it should warn you to be cautious. 

Image source: Unsplash