The Reason Why Traders Lose?


The reasons for losses can be numerous and all of them are quite individual.
Some traders simply don't have sufficient amount of knowledge for this activity. There are thousands of people who think that everyone can come to trading and start making profits immediately. These people are lulled by the very image of trading and they tend to think that all the traders do is just clicking buy/sell buttons and nothing more. However, it is impossible to show the actual process of making decisions of a professional trader. They do lots of hard work which stands behind the process of opening the deals.
Other traders do have sufficient knowledge but they are affected by the emotional factor which distracts them from common sense and logic. Psychology plays huge role in trading and only skillful and emotionaly stable traders can make decent consistent profits.
Some experienced traders may also have losses just because of the fact that they don't update and refresh their knowledge and trading strategies. It is an open secret that market is developing all the time and all kinds of knowledge become outdated quite rapidly. That is why it is vital for a trader to be on the move all the time and constantly modify their trading strategies.
These reasons are the most common, from my perspective, but there can also be some details which are individual, so if you want to see the reasons of your losses, you should pay attention to your trading strategies and the way you take your decisions. The best way to track down all of your mistakes is to make a trading diary where you should write all the thoughts prior to the deals.
This is really something which everyone should understand.

Sherek Max

From my own experience, i can tell the reason i lost in my past my own unrealistic expectations so don't do that.


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.
Yeah this! Thinking how much they can win rather than how much they can lose. They get it all backwards. I did at first too!


Surely, I cannot but agree with the idea that the knowledge is the cornerstone of success, but it is not enough to be smart in the market.
Along with wide-range knowledge a trader should also possess certain skills and psychological stability. The skills are the implementation of knowledge on practice. I mean that it is great to know lots of things about financial markets where you trade, but such knowledge don't cost anything if you cannot make use of it. More than that, you need to be psychologically consistent in order to make sure that you use your skills in a timely manner and your trading decisions are based on your common sense rather than your feelings.
I believe that all of the above-mentioned three factors are equally important for trading success. The lack of one of them may make a trader lose their money. That is why it is of great importance to pay your attention to all of the sides of trading but not only on one aspect which seems important to you. Trading is a multi-facet activity and it encompasses lots of stuff.


Private, 1st Class
If there's any luck associated in trading, it is just Beginner's Luck. And it's not gonna help in the long run.
You start trading, you just hold and add to every losing position, lucky for you, all losing position reversed into profits. And you think you’re the special one.:D
Then a time comes, it never reverses and everything is gone.