Why Do Most Traders Lose

[cowmadagan]

Well...

The particular reason for failure really depends on your trading strategy. For example, if you like to hedge similar pairs, like going long in both EUR/USD and USD/CHF (that means you're betting both for and against the USD for those who don't know) and you get afraid before hitting your stop, you'll likely forget that you really don't know what's going to happen, and you'll close a position that might not be a loser. One big trick for not letting your fear overwhelm you to your disadvantage is to never talk to your wife when trading. Lock the damn door. Soundproof it.

On the other hand, I really guess that the vast majority of casual traders completely lose out due to innumeracy (like illiteracy, but with numbers). This would come up anywhere from undercapitalisation to 'hey..there's no way the pound could ever drop fifteen cents, so I'd rather wait without a stop loss'

Last, I guess that proprietary trading in most banks is done by graduates, and they treat their trades the same way as many people do on their demo accounts.
I know Forexwatchman recommends going to a nanolot account basically ASAP so that you take it seriously, but I think the baby in his thinking is that you have to really feel like the money in your demo or live account is real money. You lose 1K and that means you could've had a 37" TV in your bathroom, but you don't cuz you f'd up. The bathwater is when these prop traders at banks treat it like it's not their own money.

It's a simple enough mistake, and fear has a lot to do with why many people will be successful on their (fear-free) demo and then crash and burn when going live.

 

[Froso@FXNET]

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.

Greed is being top reason why almost trader loss more of this business expecially for among beginner traders , they think can get hundreds of dollar or even more just within few times, they will have high greediness in their mind that make them forget about the riskiest of this business then trade with brace taking high risk without realize when make once mistakes will loss all investment

 

[nahiyar]

More expectations are also a reason for loss .Trades forget money management and take high risk to make maximum profits. Some times they loose all their amount. It is not money making machine it should be done as a normal business.

 

[downtrend]

The majority fails in forex because they are not serious in forex trading, they are waiting for a jack pot and have decided to take forex seriously after that with funds they will get if a jack pot is hit.

 

[EURUSD]

The majority fails in forex because they are not serious in forex trading, they are waiting for a jack pot and have decided to take forex seriously after that with funds they will get if a jack pot is hit.

There are traders who are not serious in learning about forex but hoping for luck only in trading and this caused loss possibility more than win possibility. But loss is not only happening to beginner traders or traders for luck only, but it can happen to anyone in forex market. There are many reasons which can cause loss but we didn't need to know all of those reasons. The most important is learning from our own mistake to be better in the next transaction. So, don't be afraid to face loss especially if there is proper money management and risk management to limit the loss but it is still necessary to make evaluation when you lost in trading.

 

[Whitesnake]

Most of the traders lose their hard earned money to the forex market because of their own repeated mistakes which they commit while trading in the forex market. One should be knowledgeable enough to manage their account efficiently such that they do not lose their hard earned money to the forex market.

 

[iMusingKiMi]

Lying to themselves. They thought their knowledge and strategy/system is good enough for trading but actually it is not. Many people doesn't want to admit wrong and accept their reality, keep and keep making the same mistakes.

 

[Froso@FXNET]

Most of the traders lose their hard earned money to the forex market because of their own repeated mistakes which they commit while trading in the forex market. One should be knowledgeable enough to manage their account efficiently such that they do not lose their hard earned money to the forex market.

Poor in understanding about management will be have bad mistakes for among traders , but its always repaeate again and again where among trader just have profit oriented in their mindset . so its will hard to solves this problem

 

[downtrend]

Lying to themselves. They thought their knowledge and strategy/system is good enough for trading but actually it is not. Many people doesn't want to admit wrong and accept their reality, keep and keep making the same mistakes.

Lack of proper practice is also a common mistake by many traders. They don't practice well on demo account and tend to start live as quickly as possible which causes loss in their real account.

 

[Froso@FXNET]

Lack of proper practice is also a common mistake by many traders. They don't practice well on demo account and tend to start live as quickly as possible which causes loss in their real account.

as ironically so many trader just jump in real account as directly with less understanding about many thing of forex business and also still in poor experience about hw make profitable from this business . its will make them just fails and fails with loss result in the real trade