Why do 80-90% of beginner Forex traders lose ALL of their money?

[nahiyar]

Basicly because the natural habitat of humans is to plunge into something without carefully learning the ins and outs of something.
forex was hyped a few years ago and after it got accesable to everybody with an internet connection people started trying it out.
As a results allot of people just started to gamble instead of figuring out a good and tested system.

Yes these days people want to earn online they think forex a best way in this contest. Forex is not as easy as they think that they will use internet and make money .Forex need `proper learning and trading practice otherwise they loose as most of the traders do.

 

[downtrend]

Yes these days people want to earn online they think forex a best way in this contest. Forex is not as easy as they think that they will use internet and make money .Forex need `proper learning and trading practice otherwise they loose as most of the traders do.

No one can become a good trader just by owning some device and having access to internet, it takes time. A lot of practice and experience is needed but most people don't spend time in learning proper trading so the number of losers are very high.

 

[carnelian]

Majority of traders that enter forex market don't get proper knowledge about trading. They think its easy and they can start making money easily once they get going on. But in reality opposite happens and they fail badly.

 

[EURUSD]

Mostly beginner they lack in experience and knowledge, which they thinking forex is easy, making trading is simple and just need to buy at low and sell at high, but in fact as trader they still make mistake which somerime they let floating loss with hope movement will turn around back to early track.

 

[ForexVerified]

Mostly beginner they lack in experience and knowledge, which they thinking forex is easy, making trading is simple and just need to buy at low and sell at high, but in fact as trader they still make mistake which somerime they let floating loss with hope movement will turn around back to early track.

And if you get a lucky start you become overconfident, eventually leading to your account getting blown up.

 

[mlawson71]

Or, on the other hand, they don't have enough confidence and second-guess all their decisions, which also leads to losing one's account. Trading with real money has an added psychological pressure that isn't there when doing so with a demo account, and most newbies aren't prepared for that.

 

[bigdolly]

Its because they calculate trading risks incorrectly, trading 1 lot trades with 200-300 bucks deposit what naturally ends up in account wipeout. Firstly newbies should understand what is volatility and leverage and how it affects your trading risks.
Good luck

 

[dianajs]

It's crazy to trade 1 lot or more, unless you have a large account and you have the experience to know when to be certain about a trade. I've never done that, especially as a newbie. It's amazing that people really do it.

 

[EURUSD]

It's crazy to trade 1 lot or more, unless you have a large account and you have the experience to know when to be certain about a trade. I've never done that, especially as a newbie. It's amazing that people really do it.

Trade with big lot size also need to look on our capital, if we only have small capital hence better only use smallest lot size it will more safe than trade with high risk taker, many trader fail also because they greedy in trading.

 

[dianajs]

Trade with big lot size also need to look on our capital, if we only have small capital hence better only use smallest lot size it will more safe than trade with high risk taker, many trader fail also because they greedy in trading.

Well, the smallest lot size is what, 0.01, I think? You can't really make money with that lot size, but it's probably good if you want to practice live trading. My point is, you should adapt your lot size to the size of your account. It doesn't necessarily have to be the smallest, but it should be proportionate to what you have.