A study of over 10,000 forex traders showed that most fail due to one or more of the following reasons: lack of discipline, poor money management, not sticking to a trading plan, revenge trading, and letting emotions influence decisions. Lack of discipline is by far the most common reason for failure among forex traders. It manifests itself in many ways, such as taking too much risk, holding on to losing positions for too long, chasing after losses, and ultimately failing to stick to a trading plan. Poor money management is another common reason for failure. Many traders do not have a proper risk-to-reward ratio or take on positions that are just too large for their account size. This can lead to blowing out their account when the market moves against them.