Reasons why Forex Traders lose money

[shaunna75]

There has been an estimate that more than 90 percent of Forex traders lose money and end up quitting, but there is always a reason for that loss. Usually those with only a small amount of capital and outsized risk, end up being emotional with each swing of the market and jumping in and out and the worst times possible. Those who does not know risk management would be in big trouble because the main goal right now is to protect what you have and not make profit. Being greedy would get you nowhere so try not to grab every last pip before a currency pair turns because this can set you up to lose the profitable trade that you are sitting on. Don't be indecisive because switching back and forth will just make you lose little bits of your account at a time. Learn to admit mistakes and learn from that so you can move on and trade better.

[nick74]

There are many reasons why a forex trader lose money. Discipline is one of the common reason. Either traders don't use any strategy to trade( they don't plan their trades first) or they don't follow their strategies/systems strictly. There is a famous quote - Plan your trade and trade your plan. This explains everything.

[bestforex]

Yes, I agree with your post. Unfortunately, in trading can also result in the risks associated with losing some or all the money invested in this trade. However, the trader can limit this risk, as the losses are also limited for the amount specifically risked on the trade, instead of the entire balance of the trader in his account.

[andry777]

There are many reasons why a forex trader lose money. Discipline is one of the common reason. Either traders don't use any strategy to trade( they don't plan their trades first) or they don't follow their strategies/systems strictly. There is a famous quote - Plan your trade and trade your plan. This explains everything.

I am agree with you. It is important to plan our trading and then we should trade what we have planned. In the first time, we should make trading plan that will lead us what will we do in trading and we can use good money management. After we made good plan, then we should have good psychology to run it well no matter what will happen in the market.