The Reason Why Traders Lose?

[JamesForexSlayer]

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]

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]

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]

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]

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]

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]

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]

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.

 

[Chiyo]

There is not one single reason but can be many reasons why traders lose such as- overtrading, having too much expectations or may be risking too much per trade.

 

[Oswald Franklin]

I think poor risk management or no management at all can also be one the reasons why forex traders lose money.