reasons why traders lose

Drunk and high on coke and meth during NFP with account maxed out with no stop

Great imagination! But how do you know, maybe it is just crafty strategyand will result to profits quickly?

repeating mistakes is a sure way to get your account blown

One thing, Emotion control, roots of any reckless moves. Some newbie traders might get themselves exited when they're made some profits based on their luck and they're curious to test their luck again. Without any proper analyze, it might be a boomerang to them.

I think there are two overwhelming reasons why traders lose (which, between them, I think, probably account for 90%+ of instances): the undercapitalisation/overstaking problem, and the issues of not having an "edge" (positive net expectation) in the first place.

I strongly suspect that the proportion of losing traders who are losing primarily through a combination of overstaking and undercapitalisation is at least as high the proportion who are losing mostly because their initial methods never actually had a proven edge ... though doubtless there's also quite some overlap between these two huge groups.

Successful forex trading, after acquiring the necessary technical skills and having trading methods with a provable, objective "edge", is probably about 60% money-management (including position-sizing), 30% psychology, 8% trade-management (including exits and stop-loss judgement) and 2% entries. (The losers in the game, I think, tend often to be people who imagine that it's about 60% to do with entries and some even have difficulty understanding the difference between a "trading system" and an "entry-method".)

There's also a set of "fundamental mistakes that you have to avoid", but these aren't quite so easy to explain, partly because they require experience and judgement, and partly because although they may overlap to quite a degree, they're probably not exactly the same for everyone.

I think the biggest and most important single skill at the beginning is to develop the judgement needed to be able to decide "by whom to be guided", because when it comes to "trading education", pretty often the blind are leading the partially sighted, and there are certainly huge amounts of misinformation around. And I don't mean just in trading forums.

If I may add.. there seems to be many people - obviously such as yourself - who believe, despite the obstacles and statistical facts - that there is a "way to win" if "a,b,c or d" is done when actually the reality is that there is no solution.

Is martingale system a factor cause new trader loss?

Yes; very much so, to put it mildly.

Someone who imagines that it's reasonable or sensible to determine the position-sizing for a trade according to the outcome of the previous trade shouldn't be trading with real money at all.

No system can be improved (or made to work) by Martingale staking. Either a trading method has an edge, or it doesn't. If it does, then it doesn't need Martingale staking and should just be applied to the market whenever its entry-criteria are met, with position-sizing appropriate to its profit-factor, account-size and the user's degree of risk-aversion. If it doesn't, then it can't safely be given an edge by increasing the stakes during a losing run.

The irony of Martingale staking isn't just that it can wipe out people's accounts unnecessarily (though that's obviously true): it's the fact that it's possible, using a Martingale, to lose money even with a profitable system that genuinely does have an overall edge.

It’s a risk not worth taking, not least because as a trader, you need to do everything in your power to minimise risk - not take unnecessarily large ones. In the famous words of John Maynard Keynes, "Markets can remain irrational longer than you can remain solvent." In other words, put that kind of position-sizing to the test and, sooner or later, you'll destroy your account.

Another point to keep in mind is the risk model adopted by most institutional traders. This requires them to decrease their risk exposure as their account equity falls (i.e. after losses), and to increase it as their account equity builds (i.e. after profits). That's the opposite of what Martingale-based plans do. So a question for people who want to use Martingale staking is "Do you think that perhaps all those professional experts might know something that you don't know?"

Many reasons will cause lost, such as lack of experience, skill, knowledge, bad mind, unreasonable trading strategy, some times even bad luck! But I always believe that hardwork and efforts will provide good results finally.

This.

http://www.forexfactory.com/showthread.php?t=545397

Correct me if i am wrong. In order to be a good or successful trader, you will need these basic set of qualities.

 

1. Willing to be open to different approaches
2. Beginning with an end in mind (Setting stop loss)
3. Knowing how to track your progress not just as a whole but into each individual strategies as well
4. Being disciplined and sticking to the rules instead of our gut

Is it something like that?

This is the hardest part where almost newbie traders were fail to apply it. It takes some times to be discipline (and to shape our discipline).

Reasons why most traders lose in my opinion is emotional making decisions. You have to follow a trading plan or system with discipline, otherwise you aren't allowing your edge to work for you. Without this then any form of trading in this regard is simply gambling, since it can't be reproduced reliably.

I would certainly add "emotions" to your list. It's a bit about greed, but I mean it in a broader sense. Trading is too psychological not to depend on emotions and feelings.
Then, I'm sure that being too conservative is another problem. Like, trading according to a few strategies and disappointing if they don't work. Trading is a risk, so you have to risk and try new things.
Another idea is that the lack of experience point can be further developed: unwillingness to udecate yourself and learn. Some traders are so self-sufficient, thinking that they can rely on luck only.

Trying to make up for your losses can really go downhill also

Especially for young trader, if they expected to make some fast money in this business, it's better to erase that passion. Even a good trader couldn't make their first buck one the first 3-6 months learning forex trading...

Some of the most common mistakes as for me.

1.Moving stop loss orders or take profit. Take such action as is necessary, only if it is part of your trading system.
2.The increase in losses by increasing the lot transaction - common way how quickly left without a deposit. Unnecessary risk and poor trading decisions.

This is all in addition to other errors. Of course, a great role played by the human factor that causes people to trade again and again. Greed, passion are the main factors that people use in the trade. As for me Forex - a game on the psychology of people.

Add to the list of reasons traders lose:

9. Focusing on reasons to lose rather than reasons to win.

If you think you can, or if you think you cannot...you are right.

This is the most problem I've always seen in many new trades, they were afraid to open an order because they are focusing on reasons to lose which is a problem in his psychology...

You just need to have a trading plan and stick to discipline of strict money management rules. To make money in the Forex market it is not appropriate the word "game." Forex - is routine work, where you need to plan the transaction count options, always put the stop loss and risk less money than would be desirable.