Why do Forex Traders Lose Money

[Swayam]

Usually the newbies think that FOREX trading is very simple and easy where they can earn money quickly. So they enter in to this business without having proper knowledge about trading. It results them to lose in the beginning. Some traders also take their plans into a smart category where they think that they can earn well in FOREX. So they just move on too fast that in the long run they face loss.

[salina]

Good question by my friend, answer is simple to all I think. Forex trader lose because of greed, fear, frustration and also very low education level. When greed eats a man, he can't go long as we can see. Fear & Frustration are also harmful for a trader. Without good education power its hard to success. After all I want to say we also need to work very hard. Thanks!

[powerz]

In my opinion, the reason why most traders lose in forex is because they don't respect the rules because most of them can't wait for success and choose to break some rules in order to make money the quickest possible, but this often backfired because forex is not a safe business, that's why they end up losing everything.

[janknoah]

Losing in forex is caused by many factors ranging from the attitude of the trader, up to the psychology of trading, even things which can't really be considered can cause serious losses. The common part of which is wrong analysis thereby leading to wrong entry, even there are times when your analysis might still be correct, but the entry point becomes a problem.

[rizal83]

still a lot of traders who trade the forex like doing a gamble, and there are many traders who rely on their good fortune to be able to get profit from forex trading, and this is one factor that causes many traders to lose in forex trading, because they never do trade forex with a good knowledge and they prefer to bet money that they have to be able to generate profits from forex trading, and they also never thought of all the risks that would occur

[waseem]

Forex business is not easy for everyone because we have much need skill and experience to get knowledge about this business without knowledge if we spend much money we can not earn profit main techniques is earning profit from this platform and that is possible when you have knowledge about this business.

[ayushsrk]

Losing in forex is caused by many factors ranging from the attitude of the trader, up to the psychology of trading, even things which can't really be considered can cause serious losses. The common part of which is wrong analysis thereby leading to wrong entry, even there are times when your analysis might still be correct, but the entry point becomes a problem.

Majority of the traders here in the trade market are losing and that is due to one common factor and that factor is the lack of knowledge that the traders have here when trying to trade.If a trader does not even understand the market well then there are always going to be high chances for the traders to be facing maximum losses too.For any traders it is always necessary therefore to firstly understand the market well before even trying to get involved into the trades.

And if unfortunately these traders get involved into the trades without even understanding the market properly then there will be high chances for the traders to face high risks as well.So a trader always needs to consider to analyze and study the market movements prior to trading here in the trade market.

[Rajonbd]

Actually here people always loss their money because they are always unable to control their emotions and greed and while they start forex trade then its start without learning this forex properly and they also not able to do hard work on their demo account . So if people want to earn profit from their forex trading life then always people need to learn it properly .

[fxscalper]

There are so many reason to lose money in forex trading. When somebody don't have the proper knowledge about trading and don't have the proper experience about forex trading they become loss in forex trading. If you maintain the amount of money and get the prefect knowledge you will not be lost in trade. Thanks all.

yes my dear friend, i do agree with you, there are some reasons will affect us at this business to reach the goals, and all come up from us as internal problem, because all depend to us for how to manage our forex trading and do something right in the market, and of course, everything will work with good and if we know for how to manage them with well

[yogesh]

yes my dear friend, i do agree with you, there are some reasons will affect us at this business to reach the goals, and all come up from us as internal problem, because all depend to us for how to manage our forex trading and do something right in the market, and of course, everything will work with good and if we know for how to manage them with well

I agree that we as a trader are responsible for any losing trades we make like we are for any profit generated for our trades. It for sure have impact on our trading performance as to how much efforts we put in analysis, and how much disciplined we remain to our trading plan. But still market in itself being highly unpredictable and uncertain we may get losses despite taking all cares and putting in full efforts so always apply appropriate risk management to our trades.

[debian]

I agree that we as a trader are responsible for any losing trades we make like we are for any profit generated for our trades. It for sure have impact on our trading performance as to how much efforts we put in analysis, and how much disciplined we remain to our trading plan. But still market in itself being highly unpredictable and uncertain we may get losses despite taking all cares and putting in full efforts so always apply appropriate risk management to our trades.

That is great solution, Forex traders lose money is usually due to trading psychology problem because if psychology traders is bad then it will be difficult for them to be disciplined by the trading plan while as you said discipline is the key to successful trading to not loss anymore

Many trader has felt and experienced of lose money but most of them can not improve their selves be better as long as they don't improve their good psychology, we must know that psychology is the source of all the problems of our trading results, whether we are greedy, emotional, over confidence, anger, fear, disbelief, and sometimes assume that this is just for the game business in which only excite emotion and pleasure. so that is most reason why forex traders lose their money

[Biplob]

Fx market has no character.But again has lots of characters!So you have to locate the first step of the Fx
market and monitor for at least two weeks to see how market fluctuates.Maximum traders trade with out
analyzing power.That is why traders lose money.

[hashaam]

well the simple answer is they do not know how to trade they can not trade well because of fear , greed and emotions so they should have to leave these habits for making good money and if they do not do this they lose the whole amount in a short time that is why they lose they should have to practice more for avoiding loss in their trading career ...

[anowarul]

it is true that many forex traders lose money. some traders loss a huge money. but it is also true that all the traders don't loss money. i think who loss money, most of them are newcomer. there are so many reason for losing money in forex trade. 1. the new traders don't learn forex trade properly. without learning properly, they start their trade and get loss at last. 2. most of them become greedy. they use more capital at first. so they lost their capital. 3. they use big leverage to be rich quickly and can not understand pips. so they get loss.

[powerz]

Most of people want to become a rich overnight with forex trading they trade without any knowledge of forex trading hence they end up in a loss. This is one case some time people trade just because they want to trade they don't see any setup they just trade blindly. Third and worst is gread that is responsible for death (margin call) of many new traders.

That's right my friend. A lot of traders are greedy and impatient and look for the quickest way to make money. That's why they take some short-cuts, which are dangerous in forex trading because they are against forex trading rules because they can cause them to lose their accounts even more quickly.