Tag: Retail Traders

By Mehrullah Jamali | Founder, MJ Forex Academy | Forex Coach & Analyst The retail forex market offers one of the easiest gateways into the world of trading — but behind that accessibility lies a brutal truth: more than 85% of retail traders lose money. As someone who has spent years coaching traders and closely observing their patterns, I can say with certainty: there’s no single reason for this widespread failure. Instead, it's a combination of psychological, technical, and systemic issues that gradually destroy potential before it matures into consistency. At MJ Forex Academy, we’ve worked with hundreds of traders, and our analysis points to three primary categories of retail traders — each facing its own challenges. Category 1: The Instant Dreamers These are individuals who come into the market without any background or preparation. Motivated by flashy advertisements and stories of quick riches, they install MetaTrader 4 or 5, fund a $100–$1,000 account, and start trading almost immediately. They treat forex like a lottery ticket — not a financial profession. They lack a strategy. They have no trading journal. They chase profits blindly. More than 50% of failing traders fall into this group. Their trading is based on impulse and hope, not data and discipline. Category 2: The DIY Learners This group comprises beginner traders who are a bit more serious. They’ve watched countless hours of YouTube tutorials, joined signal groups, and followed social media influencers. They may understand support/resistance and trendlines, but lack a structured roadmap. These traders expect to double their accounts in a short period — and end up blowing their capital instead. Common traits include: Blindly following signal providers without understanding why. No backtesting or forward testing. Ignorance of risk management. Roughly 30% of traders fall in this group, and about 80% of them fail due to lack of mentorship, poor expectations, and inadequate system development. Category 3: The Strugglers (The Real Traders) This is the most promising category — and also the most misunderstood. These traders have invested in education, taken courses, and are often part of a trading community. They understand market structure, candlestick patterns, risk management, and even psychological traps. Yet they struggle to reach consistency because of internal and behavioral flaws: Overtrading due to FOMO (Fear of Missing Out) Revenge trading after a loss Lack of confidence in their system No trade journaling or post-trade analysis Emotional decision-making under pressure This group needs more than education — they need structured mentorship and monitoring. The MJ Forex Academy Approach: Mentorship + Monitoring = Mastery At MJ Forex Academy, we believe education is only the beginning. Most traders don't fail because they don’t know technical analysis. They fail because they don’t have discipline, accountability, and emotional control. That’s why our approach includes: ✅ Ongoing Monitoring After the Course We monitor our students for at least 6 months after course completion. This includes: Weekly trade reviews Strategy performance audits Risk exposure evaluations ✅ Weekend Community Sessions Every weekend, we hold live community discussions focused on: Trading psychology Strategy setup and refinement Weekly P&L analysis Live Q&A on real challenges ✅ Dual-Journal System for Traders We assign two types of journals to every student: Strategy Test Journal Tracks trade ideas, reasons for entry/exit, win/loss ratios, and R:R evaluation. Psychological Mistake Journal Students must document every mistake: Was it emotional? FOMO? Revenge trade? Rule violation? By forcing traders to reflect on their behavioral patterns, we help them gradually develop emotional discipline and self-awareness. ✅ Weekly Journal Submissions Students are required to submit both journals every week. This builds accountability and encourages them to stay focused and honest with themselves. Conclusion: It’s Not a Market Problem — It’s a Discipline Problem Forex trading is not a scam. It’s not too difficult. The market doesn’t “target” retail traders. The truth is: most traders set themselves up to fail — by skipping the hard part: discipline, structure, and mentorship. If you want to beat the odds, surround yourself with the right people. Be part of a community that holds you accountable, and commit to developing both your strategy and psychology. At MJ Forex Academy, that’s exactly what we do — we turn dreamers into disciplined traders. Author: Mehrullah Jamali Baloch Founder & Chief Coach – MJ Forex Academy 8+ years of experience in Forex, commodities, and capital markets Need help with your trading journey? Join our next mentorship cohort — and let's build consistency together.

Tag: Retail Traders

Why 85% of Retail Traders Fail in Forex: A Coach’s Insight from the Frontlines

Quick List

Resources

support