We all make mistakes sometimes, especially in trading. Because of that, we sometimes lose money. I've written about the most common mistakes that I sometimes make myself and I think a lot of you.
Discipline problems.
The grossest mistake that a trader can make is to let his emotions influence his trading decisions. The key to success lies in several large successful deals and a lot of small failures. However, it is very difficult to cope emotionally with constant losses. This is a real test for a trader's patience and confidence. Emotions can be awakened if trading is carried out in accordance with a carefully considered plan, which helps to maintain trading discipline.
Lack of planning
No matter whether you trade in Forex or prefer a different type of asset, the first step to success is to create a plan and follow its points. A successful trader works within a documented plan that includes risk management rules and specifies the expected return on investment. Following a strategic plan helps investors avoid the most common trading mistakes. The lack of a plan means that you simply underestimate your ability to trade the market.
The inability to adapt to the market requirements
It is already necessary to have a plan for each trade before opening a trade. As market conditions change, new opportunities and risks appear. Therefore, there is simply no universal and reliable system that would work for a long time. The most successful traders adapt to changes in the market and modify the existing strategies accordingly.
We all make mistakes sometimes, especially in trading. Because of that, we sometimes lose money. I've written about the most common mistakes that I sometimes make myself and I think a lot of you. Discipline problems. The grossest mistake that a trader can make is to let his emotions influence his trading decisions. The key to success lies in several large successful deals and a lot of small failures. However, it is very difficult to cope emotionally with constant losses. This is a real test for a trader's patience and confidence. Emotions can be...
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I agree and also making the wrong choice while selecting a broker and over-leveraging.
Hey! Let me share my sad story, I was still losing because of the wrong strategy I chose. And I though that if I will push it hard enough - eventually I'll succeed. But it didn't happened haha (sad laugh).
There are countless strategies out there - you need to find the best for yourself. Try them on demo, not on live smile
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Joined Mar 2020
|170 Posts
When people start losing in Forex trading then they mainly leave trading and never look back to it. So if you want to be successful then you need the courage to stand in the market and learn it again and try to avoid your mistakes in your next trade.
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Joined Dec 2015
|3,529 Posts
A lot of people do do that. Usually the end results are two - either they lose all their savings and then don't know what to do or they learn to profit, but there is no guarantee one would be among the latter and not the former.
I agree. Even if you primarily one uses technical analysis, it's good to also be aware of the fundamentals.
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I agree. I am a technical trader who is aware of hot zones on the financial calendar. I don't know what half of the data means, aslong as I stay away from FOMC, NFP etc
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Joined Jan 2020
|265 Posts
Lossing money is a common thing in this market. But there is an obvious reason for your loss. I think most of the traders lose their money because of the wrong strategy.
A lot of people do do that. Usually the end results are two - either they lose all their savings and then don't know what to do or they learn to profit, but there is no guarantee one would be among the latter and not the former.
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True, for every successful trader there many who have lost their savings and quit. Sadly, people enter trading focusing on the winners while completely overlooking the losers.
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Joined Jul 2020
|130 Posts
For me its emotion. I have not fully mastered my emotion. Recently I stop out manually couple trade which later have not hit my SL. I think fear of losing make me do that.
Surprised to see that this thread gained some interest. Disappointing that some of it's the usually squabbling.
You guys really need to look within yourselves if you want to even attempt to call yourselves traders. It's almost nauseating to read these forums with all the vicious infighting. The market will easily beat you in no time if you haven't been already.
I've never seen so much hostility in a trading forum as here. It's like an internet fx ghetto of people that want to crossover but are nothing more than addicted.
I can't say this enough, if you don't have the mental fortitude to know your inequities you are going to be in a place you don't want to be if you aren't already there. Perhaps that's one of the reasons for all this bickering.
With trading forums less is more. Practically all I see here don't demonstrate the abilities.
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Joined Jul 2020
|130 Posts
There are lot of reason to lose in trading lack of knowledge, skill, emotion, good trading strategy. Trader should find their own mistake and avoid it in future to make profit.
The strategies are all rudimentary here and the majority are useless. There are no skills here. Saw someone with a coveted red flag take a ninety pip loss on euusd and everything was A-Ok. Yet they continue to post every trade and people are supposed to care? If you want to be a trader then go out and start acting like one. Go watch the market, problem solve, use freaking common sense or grow one applicable to trading. Get off forexfactory for a day. Know when to move on instead of being the guy gambling a micro account forever. A lot of it is inherent,...
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I agree. Most ready made strategies do not work. In fact no strategies work unless we make it customized for our trading personality. Every person is different psychologically. That's why they react differently even if they are using same strategy.
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Joined Mar 2016
|641 Posts
i am doing loss still , because of my personal reason which is same mistake , actually there is no same mistake , its all about personal choice, people do mistake due to bad habits , we have to fight with self first of all if we want to come back real life feeling.
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Joined Apr 2018
|459 Posts
traders loss because they only focus on only acquiring good knowledge and experience , but in spite of having real knowledge the result of trading can be useless if there is no money management plan, so we have to focus on there.
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Joined Aug 2020
|109 Posts
Trading is not a place for gambling that you can easily earn money. You need to get proper education about trading. It is not possible to make a consistent profit in trading without Forex training. Have an idea about money management and risk rewards. Most traders have steel in their losses because their money management and risk rewards are not good. And they never follow discipline.
Trading is not a place for gambling that you can easily earn money. You need to get proper education about trading. It is not possible to make a consistent profit in trading without Forex training. Have an idea about money management and risk rewards. Most traders have steel in their losses because their money management and risk rewards are not good. And they never follow discipline.
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If they gamble they can make money which is also false confidence eh.
