Why do Forex Traders lose money?

[Froso@FXNET]

I think that the reason is that these people do not have enough skills and experience, just deposit huge sums with a hope to get luck and win and in most cases, of course, they fail. Another reason is scam brokers who will never allow you to earn anyway, in any case....just stay away from them, the scam list which is presented here will help you.

Many times many traders just trade and entry position without logic reason while their decision not use strong analyze . they make order just use feeling and speculative mode . so skill and experience not use for trader who loss in forex trade

 

[nahiyar]

It happens to many traders they do not know right entry point just open trading platform and start buy or sell . They do not do hard work to watch and analyze market . Every pair is different in its movement . They should spend time to understand market so that their loss will remain less.

 

[iMusingKiMi]

Some of them are deluded that thought they can predict where the market direction was. They trade according what they think instead of trading what the market behavior are.

 

[downtrend]

Some of them are deluded that thought they can predict where the market direction was. They trade according what they think instead of trading what the market behavior are.

And especially in such situation they try to make big money by just hoping that market will do something they think it will do. You need to trade what you see and not what you think.

 

[FxMaster]

I wonder how I missed this thread

Let me add my opinion,

There are few points why Traders lose money,

* Lack of Forex knowledge.
* Live trading without enough practising on Demo.
* Greediness (One of the main reason to lose money).
* Unreasonable Expectations.
* Trading without Strategy.
* Holding too many open trades.
* Big winning mentality.

 

[EURUSD]

I wonder how I missed this thread

Let me add my opinion,

There are few points why Traders lose money,

* Lack of Forex knowledge.
* Live trading without enough practising on Demo.
* Greediness (One of the main reason to lose money).
* Unreasonable Expectations.
* Trading without Strategy.
* Holding too many open trades.
* Big winning mentality.

Yes, mostly reasons have been explained here although there are some other reasons which can cause loss in trading. It is good to know the reason of traders to lose money but it is more important for each trader to realize that there is no one who can trade without loss. So, lose money is common thing in forex as long as there is proper money management and risk management to limit maximum loss which can happen.

 

[ForexVerified]

Choosing a poor broker might also be the cause for trader's losses.

 

[downtrend]

Mainly because of greed, most of the traders use very high lot sizes and they keep on doing such in anticipation to get a big win, which never happens and they get margin call one after another.

 

[Whitesnake]

Mainly because of greed, most of the traders use very high lot sizes and they keep on doing such in anticipation to get a big win, which never happens and they get margin call one after another.

The concern is that even after people being aware of the factors which leads to losses, they are still unable to eliminate those risk factors because of the emotional attachment and this can be bad for good trading process.

 

[Froso@FXNET]

The concern is that even after people being aware of the factors which leads to losses, they are still unable to eliminate those risk factors because of the emotional attachment and this can be bad for good trading process.

Yes, then traders should pay attention to these risk factors. I suggest to make a good plan in trading.