Earlier this month, David Schwartz, CTO of Ripple (XRP), was asked on Quora, why do Forex traders lose money by and large. In most quarters, it is frequently mentioned that the odds of being successful in the foreign exchange market are extremely negligible. This is because a bigger percentage of forex traders tend to fail in the industry. Regardless of this likelihood, all forex traders who aspire to be successful need to have a plan in mind for every forex trade they engage in.
It is to be noted that there are numerous grounds why a trader might lose their money in the forex market. Most common among these reasons is not having a considerable experience, the maltreatment of trading signals, and below standard money management. Interestingly, David Schwartz, CTO of Ripple (XRP), has shared his stance on the subject. Schwartz asserts that his answer is worth taking a look at, even if one is not engrossed in Forex trading.
Ripple (XRP) CTO’s Reply
It is to be noted that David Schwartz is an accomplished forex trader and investor and now he is working as an executive at Ripple (XRP). As per him, there are plenty of grounds why traders might lose their investments. Nevertheless, the most general reason that might lead them to lose their money is fine-tuning their plan to have a low likelihood of facing a loss in the short term as possible. This subsequently leads to involuntarily maximizing their likelihood of making losses.
He wrote on Twitter:
“Someone on Quora asked why most forex traders lose money. I think my answer is worth reading, even if you aren’t that interested in forex trading.”
As per the Chief Technology Officer of Ripple (XRP), if traders do not cautiously comprehend the perils of ruins for the plan they are taking into consideration, the anticipated sum, and the loss prospect, they should not be in Forex trading. Considering and understanding these principles is a must, according to David Schwartz.
What are your views on Ripple CTO’s reply to the question? Let us know in the comments section.