The Reason Why Traders Lose?

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.
 
It's matter of luck .. either trader is lucky or not .. sure if not lucky will loss whatever you do or learn ..
 
Yes!
If there's any luck associated in trading, it is just Beginner's Luck. And it's not gonna help in the long run.
 
Yes!
If there's any luck associated in trading, it is just Beginner's Luck. And it's not gonna help in the long run.
Absolutely!
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.
 
Well, I believe that it is the greed of traders which makes them to overtrade and ultimately lose in forex.
 
Basically, we can divide reasons for losing into two categories: lack of knowledge and lack of discipline.
Some traders may claim that they were just unlucky and the market behaved in an unpredictable way, so this made them lose the biggest part of their budget. It is a total BS. Because of the fact that losses are integral part of trading.There is not a single trader who has never had losses. However, professional and skillful traders do use money and risk management in their trading routine. These techniques don't allow traders to lose lots of money irrespectively of the current financial situation on the market. Some people think that they don't need to learn anything and all they have to do is just click Buy/Sell button. Surely, such people will lose eventually.
Some people cannot cope with the psychological pressure or temtations. I guess that everybody knows that trading requires lots of self-control and psychological stability. However, not all of the people expect such things happen to them. So, these people may become blind from their emotions and ignore some evident things (like risk management) in the process of making trading decisions. Of course, they lose lots of money just because of psychological factors.
 
I think there are so many reasons why traders get loss, set unrealistic target is included one reason, and there is another reason from an internal and external factor, the most internal factor reason is about control emotion and external reason like as dynamic market movement.
 
The main reason why traders lose is their own incompetence in trading and of course lack of experience or huge mistakes. Traders don't have any protection or resistance to mistakes, they are just ordinary people and mistakes are good way to improve the skills and develop as a trader. Sometimes, there are minor mistakes, but sometimes they affect your whole balance or deposit. Hence, nowadays the only way out of this situation is to analyse all the mistakes and analyse the successful deals as well. Traders should concentrate on the successful deals, because they show what did a trader do for closing this position in profit.
 
Back
Top