My 2 cents worth is people lose at forex because they underestimate how terribly difficult it is. It's not unusual for very smart people to blow up several accounts and take 10 to 15 years of study and practice before they can trade forex consistently for profit. Having an Engineering degree, I'd say it's harder than Aerospace Engineering (rocket science). It's probably closer to Neurosurgery. Being consistently profitable in Forex is not impossible, it's just very very difficult. Anyone who has been consistently profitable for a good period of time is welcome to correct me. Happy trading! - G
These points which you noted in your article really explain why plenty of trader lose. I guess that the main reasons are unserious approach to trading activity, neglection in trading psychology, low deposit and neglection in various fundamental things. I'm convinced that there is nothing more important in trading than risk management and money management practices, as well as trading psychology. Novices often think that it's easy to distrivute risks and just trade, however if it would be easy then all trader would become billionaires. Low deposit is kinda mediocre reason, because there are cses when traders reached heights starting from the very low deposits.
Most retail traders do not understand how the markets move. They tend to stick with something gives red light to "short" and green light to go "long". Understanding intuitional sentiment takes time and many retail traders have a very short attention span.
There are plenty of reasons why rookies lose, not only rookies actually, professionals tend to lose too. The main reason is chasin for money. Traders think that trading activity is quite easy and are convinced that it's also easy to make money here, however it's not like that. Trading activity as any other kind of activity requires lots of knowledge, skills, experience and practice. Traders often neglect practicing or learning, that's why they have losses. I suppose that we shouldn't neglect such things mainly because they teach us a lot. Nevertheless, traders should never be disappointed because of losses. It's just a part of activity.
