Why do Forex Traders Lose Money

[emonsikder]

Yes friend i think that 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.

[featurelion]

This business is full of risk and that is why traders are losing their equity in this field. Earning money in this market is very difficult and it takes months or years of practice and learning. People enters into the business without thinking of learning and without learning they doing bad trades without any strong reason and which result big loss, so this is not easy business as it looks. Learning is important in this business.

[nsawork]

Yes friend i think that 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.

After we get LOSS in our trades we fell low in CONFIDENCE and since the loss is in the terms of the real money most of us would need income to support our family. If that is the case then you must always create some BACKUP FUNDS that can be used when the income from the Forex trading is low or in the extreme of the cases we have no income from trading.

But even in that scenario we will need to SURVIVE in the Forex markets by making Profits equal to the Loss so that we can continue doing Forex trading and also have some hope left within us. We can always find one or the other reasons for the Loss but still we must understand that it is the income that matters to us

[imran16115]

There are too many reasons of facing loss . The most important reason is lack of knowledge and experience,mostly traders think Forex is easy way to earn money and without having knowledge and experience they start to trading at real account and they have to face loss .Other reasons are over trading,emotional trading too so first of all learn Forex properly and also do practice at demo account to become a successful trader and in my opinion almost 90% traders fail to earning

[shahin.bd02]

Main cause of loss for all traders is lack of knowledge. bcuz if we have small trading knowledge then we may become victim of emotion greed and fear and get loss. so increase our knowledge can reduce loss.

[livana]

In this market we know here are 95% of trader are losers and maximum of the trader loss their money for the reason of greedy mind and lake of knowledge trader.

[sekiryutei]

Well, it's not like that they want to loss their money on purpose. Most likely it's because they just lack the experience when they trade. Lemme give you a simple example, a trader know that the market will went up so he bought the pair. But the market got manipulated so it went down. At this time the trader too scared and he closes and sell the pair. At that time the manipulation ended and the market went up. He got a margin call after that event. It's simply because the lack of experience after all.

[sakib2k9]

i think every trade must has loss. so loss is a common element of trade. loss is a part of trade. if we get loss of some trade and after that we can make profit of some trade, then it is not a loss. we may consider it as a general matter. but if we loss every trade or most of the trade and lost our money then we call it loss. we can loss our capital for shortage of knowledge, experience, bad money management, for emotion and more greed.

Loss and profit are both the part and parcel of the business,but we can't say that we may lose every trade.In Forex all should know that it is high risk and high gain market.That mean we may lose everything or huge in trading or we may earn huge profit.
So,we should experience this matter where is the risk in Forex,how this risk cab be minimized and if we loss how to recover this loss.I think when we open position we don't think about loss or how much loss can be happened,but this answer can be found from past market analysis,this is called technical analysis.Most of the trade try to scalping without technical analysis and that's why they lose money.But i will think we should analyze market before opening every trade.

[radex78]

lack of experience is one reason why trader loss , but in my opinion loss is part from learning , if trader get loss in trading so they will learn why they get loss , recognized mistake is important to overcome the mistake not repeating again for future trades , if their loss because still bad analysis , so they can learn about system trading , if their loss because emotion , they chould built up psychology

[poncoez]

Dropping within currency trading is attributable to a lot of components which range from the actual mind-set from the dealer, up to the actual psychology of investing, perhaps issues that cannot actually be looked at might cause critical loss. The common component of which can be completely wrong examination and thus producing completely wrong gain access to, perhaps there are occassions when your current examination might always be proper, nevertheless the access point gets to be a challenge.

[shiz]

yes it is true that majority of the forex traders are facing the losses through the business of forex trading and there is not just one reason behind their losses. loss in forex trading may be due to their lack of skills that are required for controlling their emotions like greed or fear at the time of trading and also due to the improper management of their trading capital.

[ashifrahaman007]

there are so many reason to losses money in forex.i think that on of the major thing that causes traders losses are emotions we all need to control it.among many cause getting loss lake of skill is one of them.we all need to become skilled to protect loss in forex trade.learn forex trade then trade in market can stop loss money in forex.

[Mohit]

Its reason all clear that mostly people dont get the knowledge and they dont play on the demo account without this they go to the trading after one the major work which they dont do is the they never get the experience first they just comes the air and comes on the real account for the trading...

[Nikhil]

Main cause of loss for all traders is lack of knowledge. bcuz if we have small trading knowledge then we may become victim of emotion greed and fear and get loss. so increase our knowledge can reduce loss.

I am fully agree with you and its really true . due to lack of experience and proper education most of the newbie traders fails in forex and revenge , greed , emotion no doubt works behind such . and specially when loss occur most of the traders unable to keep themselves and unable to keep cool in mind which leads to another loss.

[Phoenix_2013]

There are several reasons as to why a trader lose money in this business. It can be attributed to the timing of the entry... maybe you entered too late or too early. It can also be because of the market condition because even the best trader can still lose money due to the dynamic nature of the market. It can also be because the trader is not ready to trade psychologically speaking.

Find out the reason yourself, mark it down, fix it. That's how you deal with this business.