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Why do Forex Traders lose money?

Discussion in 'General Forex Talk' started by shaunna75, Feb 6, 2011.

  1. shaunna75

    shaunna75 Private

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    There has been an estimate that more than 90 percent of Forex traders lose money and end up quitting, but there is always a reason for that loss. Usually those with only a small amount of capital and outsized risk, end up being emotional with each swing of the market and jumping in and out and the worst times possible. Those who does not know risk management would be in big trouble because the main goal right now is to protect what you have and not make profit. Being greedy would get you nowhere so try not to grab every last pip before a currency pair turns because this can set you up to lose the profitable trade that you are sitting on. Don't be indecisive because switching back and forth will just make you lose little bits of your account at a time. Learn to admit mistakes and learn from that so you can move on and trade better.
     
  2. Froso@FXNET

    Froso@FXNET FxNet.com Representative

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    You are right , loss don't mean we can not success in future , but with loss we can do move on be better again . don't think ever despair , depressed or stress from loss trading , but most important we can do be better again from time to time
     
  3. Whitesnake

    Whitesnake Corporal

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    While loss doesnt necessarily mean that we may become failures in the forex trading business, it is also a true fact that even the frequent losing trades will not benefit the traders on long run. Thus, make sure to gather good trading skills such that avoiding losses is evident.
     
  4. nahiyar

    nahiyar Private, 1st Class

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    Regular losses dis heart trader. One should start trading after frequent practice so that they do not loose their actual money . Frequent loss can kick them out . They can do trading on micro accounts to make them a sensible trader, Main reason for trader,s loss is less knowledge and trading practice.
     
  5. Whitesnake

    Whitesnake Corporal

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    Some times traders lose money even after being knowledgeable enough because they are very much greedy and are in need of making quick money which quite often leads to huge losses and thus traders end up in depression.
     
  6. md.rasel

    md.rasel Recruit

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    losing is the key to success but on Forex its not same because if you are not experienced and well learned about Forex then you will loose your money. when i start to trade on the market i was lost many times but now i am not losing big but sometime i loose because of my greediness which is bad.
     
  7. Whitesnake

    Whitesnake Corporal

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    Failure is certainly the stepping stone of success provided the failed person realizes his mistakes and implement it for his/her benefits. But if the same mistake is repeated then for sure failures tend to happen.
     
  8. downtrend

    downtrend Sergeant

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    Most forex trader lose money because they don't accept the reality that they need to control their risk while trading. Don't look at profit potential, instead check how much you will lose if your trade goes against you.
     
  9. Whitesnake

    Whitesnake Corporal

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    Speaking in real terms actually most of the professional forex trader would calculate the losses that which they may have to incur when the trade is placed. But most other traders would calculate the money that which they intend to make which is bad way of trading and managing the trading accounts.
     
  10. Froso@FXNET

    Froso@FXNET FxNet.com Representative

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    This bad thinks , we must know profit and loss always go hand by hands , we are impossible can earn forever and must remember we are trade in the market that have unpredictable condition in certain moments and also we will find there are times that unsure moment when our analyze goes wrong also
     

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