Investigating the failure factors of Forex market traders in prop firm companies

Proprietary trading, or prop trading, presents lucrative opportunities for traders to leverage a firm's capital for profit generation. However, a significant number of traders fail in this competitive environment due to various factors. This paper identifies key reasons for their failures, including inadequate education and training, poor risk management practices, psychological challenges such as emotional decision-making and burnout, and the absence of a well-defined trading plan. Additionally, overtrading and ineffective capital management further exacerbate the risks faced by traders. By understanding these pitfalls, aspiring prop traders can better prepare themselves to navigate the complexities of the market and enhance their chances of success.

کلیدواژه ها:

Prop firm ، Forex ، Financial markets ، Trading