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reasons why traders lose

  • #41
  • Sep 20, 2014 2:53pm Sep 20, 2014 2:53pm
I have to agree as well.
  • #42
  • Sep 25, 2014 3:56am Sep 25, 2014 3:56am
Quoting WaveFX
After many years of trading experience I think that I can indicate the main losing factors: I always lose too much when I wasn't patient (when I breaking the rules) and when I risk to much. If you do not want to waste Your money, You must build really good trading plan for many (sometimes irrational) situations. In this plan You must specify many rules ike: trade Entry/Exit points, Risk Management. Finnaly, You must define how You can earn much more when You have a good trade and how to minimize Your loss size when You have a bad trade . It's...
In spite of all of these rules I doubt I will find your name in the Forbs list, will I?
Although good rules generally speaking must lead to the top of the list, right?
No people become reach just trading Forex.

I insist, right now there are no good rules for Forex trading at all.
In order to be successful one has to have good intuition (vision), i.e. to be a kind of a profit.

Right now nobody has a good definition of Forex and so when trading on Forex nobody actually knows what he is really doing.

First lets find a good definition for Forex if you want to know why Forex traders loose.
  • #43
  • Sep 25, 2014 6:44am Sep 25, 2014 6:44am
Quoting KyrForex
First lets find a good definition for Forex if you want to know why Forex traders loose.
In my opinion the forex market is a probability business where did You manage a risk. If You a good risk manger then You have a profits in long run, otherwise - You loss money in this business... Risk value defines how fast You loss all Your cash or... how fast You double Your account. You define the Risk!

If You want to earn any money You must learn anything about risk control. You need to stop focusing on the perfect market analysis, perfect entry or try to predict the next market move - it's not much important at all.

Forex is a probability business. Take control of the risks and create an market edge!
Professional EA Programmer (JForex, Metatrader)
  • #44
  • Sep 29, 2014 9:49am Sep 29, 2014 9:49am
Sorry I would have started a new thread but I'm new.

I've been at this 3 years now alongside a full time job and don't feel like I'm getting anywhere. I'm a mix of paper trading and very small lots on FTSE NAS and EURUSD and sometimes swing trade UK stocks. But still I'm inconsistent win a few then give all profits back then some, rinse repeat.

I'm just paper trading a new strategy which seemed to be working great for a few days but then last few days every trade has gone against me racking up more losses than it made. At this point I'll just go ballistic and trade randomly out of frustration or give up and try another strategy once I've recovered from the disappointment.

Also I have a lot of trouble hanging onto winners, when I hold on they go against me, when I get out quick they carry on up without me.

I was determined to trade with the trend today and did so, every trade went against me so I thought stuff it and bought moves counter the trade and they worked out. Just feel like whatever I do I can't win.

Thanks for reading
  • #45
  • Edited 11:04am Sep 29, 2014 11:00am | Edited 11:04am
the one that makes traders often lose out because of the spike, but the spike is a friend to me in my trading techniques
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  • #46
  • Sep 29, 2014 1:56pm Sep 29, 2014 1:56pm
Quoting Forexnuts
{quote} Yup, there should be a bar against allowing newbies to trade shorter time frames..but then again, when do newbies ever opt for the safe route..

Man I love this quote.

There are some very intelligent quotes in this thread and some are just non-sense. You should NEVER open a new account with anything over $1,000 (IMO) as a newbie. More than likely, you will lose your first account due to lack of experience. You want to put $9,000 or more in your account, then thank you. My family thanks you as well.

Remember this saying..."good judgment comes from experience. Unfortunately, experience comes from bad judgment."

A new trader cannot help it. The new trader has BAD judgment for a period of time. Until he has used his DEMO account to relieve himself of overall bad decisions and emotions he should not open a live account. Failure is certain.
Everything easy was hard at first
  • #47
  • Sep 30, 2014 11:00am Sep 30, 2014 11:00am
Quoting dikz9
the one that makes traders often lose out because of the spike, but the spike is a friend to me in my trading techniques {image}

Demo statements make no sense. You can get profits in Demo accounts. But it is hard to earn profits from Real money
  • #48
  • Sep 30, 2014 12:47pm Sep 30, 2014 12:47pm
Quoting Parox
{quote} Demo statements make no sense. You can get profits in Demo accounts. But it is hard to earn profits from Real money

Not to be mean but care to elaborate on that last sentence? Other than a trader with no control of his emotions or a really poor choice in brokers with too much lag this sentence is not valid.


A demo account serves no other purpose other than training a trader. That training though is invaluable. The alternative to demo accounts are only two:

1. paper trading like in the dinosaur era

2. live trading. One who learns with a live account will truly pay for his education

It is highly recommended that a trader use a demo account on any new method or system until he is blue in the face, until his wife threatens to leave him, until his friends ask where he's been...then confidence and the rewards of successful trading comes to him.
Everything easy was hard at first
  • #49
  • Oct 6, 2014 6:15am Oct 6, 2014 6:15am
Quoting ocd
{quote} Man I love this quote. There are some very intelligent quotes in this thread and some are just non-sense. You should NEVER open a new account with anything over $1,000 (IMO) as a newbie. .... A new trader cannot help it. The new trader has BAD judgment for a period of time. Until he has used his DEMO account to relieve himself of overall bad decisions and emotions he should not open a live account. Failure is certain.
LOL, Blowing up that first account is part of the learning process, and the newbies would just have to go through the same initiation process. And there's nothing that beats actual trading experience..so chances are the newbies would learn NOT to repeat the same mistakes..
  • #50
  • Oct 12, 2014 8:44am Oct 12, 2014 8:44am
if you want to minimize your losses JUST trade higher time frames . thats it . its makes you take less trades and thus less losses. but try to tell that to a newbie.........
  • #51
  • Oct 12, 2014 10:21am Oct 12, 2014 10:21am
As still a losing trader, I probably can't answer this question. I'm trying out another trading strategy now, 2 weeks paper trading to get a "feel for it" and it's losing already. Yet backtesting it's a winning strategy, I'm trying to stick with it though. I'll give it a go as a swing strategy as well though on the day chart on stocks rather than forex so I have more thinking time before entering.
  • #52
  • Oct 13, 2014 12:47am Oct 13, 2014 12:47am
Quoting Proximus
{quote} Wow thats sooooooooo true, also here on FX factory you can see the TE's aggregated positions which are long and which are short are also not realistic as it most of those trades were just set an arbitrary order, and if they win they can trade another day, if they lose they cannot trade anymore ,so the "population" is ever changing as one trades will run out of money very soon. Just check the top 10 real accounts of the week,memorize the guy who is in the 1st place, come back in 3 weeks and you can probably see him with -99% return just about...
I noticed that a lot though. They had a good time getting something like 400% profit, then jumped down like -250% in a few weeks after.
If you ask me to code/fix your EA... it's probably not for free...
  • #53
  • Sep 15, 2015 5:39am Sep 15, 2015 5:39am
It is not a secret to someone that when a beginner comes to forex with great wish to make easy money, market turns out to be somewhat different from their first imagination. So as one more reason why they fail is inability to concede that it is hard working but not an easy earn up, and continuing to open and close deals carelessly.
  • #54
  • Sep 15, 2015 8:57am Sep 15, 2015 8:57am
Besides the standard advice.... at fulfillment of trading operations trader should not strive to win too easily. Otherwise, an attempt to take part in high-risk operations certainly won't be successful and quickly devastate your deposit. You should not resort to too big Forex leverage - it's not a guarantee of successful trading on the foreign exchange market.
  • #55
  • Sep 20, 2015 10:05pm Sep 20, 2015 10:05pm
clicking the wrong button and chasing the trade.
  • #56
  • Sep 21, 2015 12:17am Sep 21, 2015 12:17am
been trading for only a year and lack of discipline is one i'm trying to overcome. Start the day usually with a decent trading plan only to find myself revenge trading and chasing price should my early planned trades fail.
Therefore knowing how to take a loss is hard and sticking to only planned trades
The more i lose the more i go to lower timeframes and it basically becomes gambling...
  • #57
  • Sep 21, 2015 7:16am Sep 21, 2015 7:16am
I think the worst think what usually happens to traders is that you don't want to accept the loss or you want to cover loss immediately by opening larger amount of lot's than you should.
  • #58
  • Sep 21, 2015 12:43pm Sep 21, 2015 12:43pm
Quoting Trung
I think the worst think what usually happens to traders is that you don't want to accept the loss or you want to cover loss immediately by opening larger amount of lot's than you should.
This is part of a big issue for most traders, like it or not, around 90% of retail traders are losers, not a big surprise when you see how many Brokers are now in the Retail FX space.

Psychology is a big part of trading and being able to close your losers early is a major part of becoming a successful trader, unfortunately many traders struggle to achieve this goal. As a trader it is key to determine your risk/reward ratio and to know when it really is time to get out of your trades, both winners and losers.
  • #59
  • Sep 21, 2015 5:57pm Sep 21, 2015 5:57pm
Sorry to say this but been stupid is one of the major issue why we lose. I am including myself into this because I have lost so many times just because of silly and obvious mistakes and the most common one is been impatient!
  • #60
  • Sep 22, 2015 1:31am Sep 22, 2015 1:31am
Too large leverage with too small deposit. Chances to earn are proportionally reduced in this setup. Another issues many traders come across is inability to control emotions, but it's been discussed many times and rookies are still prone to this mistakes.
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