Why Following the Crowd destroy Most new Forex traders?
Why Most new Forex traders prefer Following the Crowd? Most new forex traders prefer following the crowd for several reasons, driven by psychological, emotional, and practical factors. Here are some key reasons: 1. Lack of Experience and Knowledge New traders often lack the experience and knowledge needed to analyze the forex market independently. They may not yet have the skills to interpret economic indicators, technical charts, or market news effectively. Following the crowd can seem like a safer option, relying on the perceived wisdom of the majority. 2. Fear of Missing Out (FOMO) The fear of missing out is a powerful motivator. When new traders see others profiting from a particular trend or trade, they feel compelled to join in to avoid missing potential gains. This can lead them to follow the crowd without fully understanding the risks involved. 3. Confirmation Bias People naturally seek out information that confirms their existing beliefs. For new traders, seeing many others ma