The Reason Why Traders Lose?

EuroTrader

Sergeant Major
Messages
1,052
Traders are more focused to make profits rather than finding ways on how to save them from loss. They do not work for strategy development and risk planning thinking of handling market situation without any skill and practice. After some time when they are failed and lose in forex business, realize the reality of the business and try to find out what they should actually do.
 

bigdolly

2nd Lieutenant
Messages
1,194
Traders are more focused to make profits rather than finding ways on how to save them from loss. They do not work for strategy development and risk planning thinking of handling market situation without any skill and practice. After some time when they are failed and lose in forex business, realize the reality of the business and try to find out what they should actually do.
I also noticed that sometimes I care more about profits rather than losses. That's why I use advanced techniques for risk management with Hotforex including trailing stops and tracking Sharpe ratio of trading.
 

JamesForexSlayer

Sergeant
Messages
219
I think people believe it will be easier than it is(maybe down to marketers making them believe this). They then don't put the hours of study in that is required to win long term.
 

Notati

Recruit
Messages
114
I also think that one of the main issues might be too much focus on profit which can lead to actual loss quite easily, exactly as Bigdolly explained. I would just add that major focus of all new traders should be learning and making solid grounds for future trading and profitability
 

Tahntaman

Private, 1st Class
Messages
63
I believe that the main reasons for losses in trading are a trader's inexperience and greed. In trading, your understanding of the market and making the right decisions play a very important role. Obviously, because of greed, you will not be able to make the right decision and are likely to lose a trade.
 

Manalmeena

Private
Messages
31
The main reasons why the vast majority of traders lose are their naivety and inflated expectations from trading I think. They usually come into trading with thoughts like "yeah im a trader thus i will make lots of money", but, of course, it's not true at all. The true is that you will make money, however without learning and practicing you just dump your deposit. I believe everything because of advertisements which always shout like "go invest and trade and you'll be the richest person in the world". Nevertheless, we shouldn't accuse ads of traders losses I guess. It's not their blame. It's the blame of naivy traders.
 

Talar

Corporal
Messages
80
Well, I don't know why the survey was required in order to determine that losses take place because traders lose more than win. I think that it is quite an obvious thing. However, you didn't mention the reasons for the losses, what you provided us with is just the definition of the losses. Surely, if I deposit the money on my trading account and avoid trading during a month, then I will have no losses because the amount of win =0 and the amount of loss =0 will be the same. This post attracted my attention because of the fact that I wanted to know the most common things which are made by the traders and which lead them to the losses. However, I got just the definition of the losses which was quite obvious to those who have common sense.
 

sebking1986

Recruit
Messages
369
While there is no single reason as such I would say a contributing factor present in a lot of new traders is planning how much they will make rather than what they are prepared to lose. A lack of emphasis on capital preservation is chronic among new traders.
 

liability

Private, 1st Class
Messages
60
Personally, I think traders come into forex trading with high expectation thinking that they will make a lot of money only to get hit by the reality when trading live. And once they are this close in blowing up their account, they gave up.
 

Gholis

Recruit
Messages
41
There are plenty of reasons as far as I concerned, which affect the success of traders in trading activity. The main here is high expectations from trading I guess. People, who have come to trading activity recently, are sure that trading activity implies fast money, nevertheless it's not like that. If you have already boosted your deposit, then the doors for the world of money is already opened, however it also depends on your expectations from trading activity. Some traders are sure that the growth of 100-200% of their initial deposit opens these doors, while others claim that it's not enough 1000% for them to start feeling comfortable with trading. Everything is pretty individual in this case I believe.
 
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