Why Do Most Traders Lose


Why do most traders lose on the markets..
Is it a down to no discipline
Fear of losing money

or just bad luck .. but how can you have bad luck all the time



Master Sergeant
Why do most traders lose on the markets..
Is it a down to no discipline
Fear of losing money

or just bad luck .. but how can you have bad luck all the time

They place risky trades at the worst possible entry price(large lot size/wrong time) Use sound money Management.

They use Stops incorrectly-IMO(I dont set Stops(OCO)until trade shows decent profit)

They dont have Bullocks of IRON when the trade moves against them. Let the trade live and prosper. This is a trait learned over time-not instinctual.

Greed is NOT setting a Stop(or OCO) when your trade shows a decent profit. News release events for the USA/Europe/England happen almost everyday and Price can turn on a dime(and usually does!)Better to profit(even a few pennies)than to lose money.

Bad luck DOES happen-accept it-stop trading that day-Pray hard-Reenter the next day when the bad mojo subsides.

Though the Trend-is-your-friend, it WILL end and retrace no matter what time frame you trade. I like to Swing Trade daily in Forex.

Eric Alyea

Master Sergeant
You young whipper snapper’s

Listen to cowmad & ernest
You young whipper snapper’s, you don’t listen (well read??).
Do you plan all day for “1" count it “ONE” trade and think your going to make money. Off reports that the “Troll/Banker’s” know an hour before they are released. Get real. Go technical and practice the charts for the day, every day (you might be able to use a report) but practice "Market order" & "Close order" some how daily. Train that trigger finger.
(Oh, You still have to read those reports though, they are very usefull)
I have lost 16 pips on a fat finger moving the curser off “Submit” because I wanted to disarm the trigger.. And it went off.
What kind of one shot with real money life are you living.
Get in to your demo’s and pactice lot size and entry.....
The bottom of the candle for buy
The top of the candle for sell.
Time the pulse beat.
If it hangs... shoot it.
Use the cross hairs (candle body - eyeball,top-bottom,{look for the most that line up} then middle ..not what wicks are doing{well, maybe some times}) rather than the calculations to figure out what the “Troll/Banker’s” are doing.

Don't stand on the line you pick, choose one side or the other and go for the conservative win
did I stay on topic that time???
Good luck
{disclaimer, some think I'm a nut case}
but I win alot
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Many traders lose due to greed and being uninformed. Lots of newbie traders think that forex trading is just as simple as buy low and sell high.

Basically yes, but it is not as simple as that. Many factors affect the very volatile forex market and newbies tend to invest a huge some of their money at once. They must read and observe the market first before embarking on that huge some of investment.


Simple: because most brokers force 100:1 leverage, so they encourage excessive risk-taking so they trade more and lose more (thus feeding market makers and general broker business models).

Everyone should be contacting the CFTC in support of the new regulations that will protect amateurs who are fed a dream by flashy FOREX ads and forced to trade 100:1 or more.

So, most amateur forex traders are losing because the brokers want them to lose and have policies in place to ensure they do. Casinos have a similar business model.


Why do most traders lose on the markets???

That’s because most are impatient to make their first million and, in their haste, left their common sense and patience behind.
They enter trades without looking at the bigger picture (charts) and got caught in impossible losing situations whereby, instead of cutting their losses, they hung on hoping and praying that the market will reverse in their favor.
Before they realize their dire situation, they are wiped out by their available margin and forced to close their opened positions with huge losses.

Does that sums up the reasons?


Private, 1st Class
it is intresting that even those that are not impatient, not greedy,do place a s/l, etc.....also loose! so there is maybe another reason?


y'know...I'd like to comment on manneke's post.

I think it is important to know that even without Obama's insistence, major banks were already closing their proprietary forex trading departments.

Of course, it's simple to say that banks take more than enough risk, and just like a casino it's better to keep the number of blackjack tables low (low returns on blackjack if you didn't know), so holding positions and buffering them with calendar patterns of your corporate clients or bucketshop-ing or just disinvolving yourself by selling the position and keeping the spread makes more profit. If banks don't take spastic risks, other banks will and they'll drive the more conservative one out of business.

At the end of the day, there are definitely easier ways to make money...but as a retail trader you don't have to deal with central banks dictating to you that you have to fulfill your contracts to your disadvantage or else lose your right to be a bank...(it happens)

Fact is, if banks are voluntarily dropping their prop divisions then that shows that even those of us that have been around for a while are fighting an uphill battle. (not the CFTC battle either)