The Rule of 90: Why Most Forex Traders Fail—And How We Avoid It
One of the worst rules of the forex market is the "Rule of 90." This rule says that 90% of all new traders lose 90% of their starting capital within 90 days of their first trade.
On the Edu Matrix YouTube channel, we eliminate this rule almost entirely by doing one thing.
We use old-school techniques.
We buy, we take possession and we hold until the currency yields a profit.
Then we exchange our currency.
Here's the entire article:
The Rule of 90: Why Most Forex Traders Fail—And How We Avoid It
One of the worst rules of the forex market is the "Rule of 90." This rule states that 90% of all new traders lose 90% of their starting capital within 90 days of their first trade.
Why does this happen?
Most traders fail because they chase quick profits, over-leverage their accounts, and trade based on emotions rather than solid strategy. The forex market is fast-moving, and many new traders make decisions based on hype, fear, and short-term price swings instead of a disciplined, time-tested approach.
How We Break the Rule of 90
On the Edu Matrix YouTube channel, we eliminate this rule almost entirely by doing one thing:
We use old-school techniques.
Instead of treating forex like a casino, we focus on patience, discipline, and long-term strategy. Our approach is simple but powerful:
✅ We buy carefully. We don’t chase price action. We wait for undervalued opportunities and enter the market strategically.
✅ We take possession. Instead of constantly flipping trades, we hold onto strong positions, just like smart investors do in the stock market.
✅ We wait for profit. Time is our ally. Instead of panicking over daily fluctuations, we hold until the currency strengthens and yields a profit.
✅ Then, we exchange. Only after securing a calculated gain do we make our next move—without unnecessary risk.
Why This Works
This method removes emotions from trading and prevents the common mistakes that cause most traders to fail. By following this strategy, we protect capital, avoid reckless trading, and flip the odds in our favor.
Want to learn more? Subscribe to Edu Matrix on YouTube, where we break down forex trading strategies that actually work.
