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reasons why traders lose

  • #141
  • Edited 6:10pm Dec 24, 2016 2:36pm | Edited 6:10pm
Quoting WTrade
Every other thing is BS. The only reason trader are unsuccessful is because they can not manage their draw downs properly. This has two components: 1. They can not keep their losses for 2% or less 2. They have string of 2% of losses that exceeds above 5-10 trades
The streak of 10 2% losses will take only 16.625% of initial capital.
  • #142
  • Mar 7, 2017 8:51am Mar 7, 2017 8:51am
There are many specific reasons for losing in Forex and from all the most is having the tendency to earn money very rapidly without learning. We the traders who are particularly newcomers can take demo trading seriously for acquiring exact basic fundamental knowledge which is very supportive to continue a live trading in a proper way, but by and large beginners don’t believe the importance of this trading place at all.
  • #143
  • Mar 7, 2017 7:14pm Mar 7, 2017 7:14pm
I would add PATIENCE. It takes patience to set at the computer and not trade when there are no winning setups. Most people OVERTRADE because of this simple fact.
  • #144
  • Mar 8, 2017 12:40am Mar 8, 2017 12:40am
the trader who often lose certainly do not have a science maximum, and experience that few possess, business is always at risk are very high, so to be able to be a trader that could benefit not often happen to lose it should do so clever in trading by learning all the time and with patience
  • #145
  • Mar 8, 2017 4:16am Mar 8, 2017 4:16am
Quoting Proximus
{quote} 1) Incorrect, low capital is the way how new traders should start, but at the same time scale your position accordingly to your balance 2) Agree 3) Not properly defined, as greed is also a good motivation tool, so i dont think greed itself is bad, but greed caused indiscipline, that is bad, so wrong there too pal 4) Definitely Agree -you missed number 5 6) Agree 7) Agree 8) Agree 9) You missed the most important one which is: LACK OF KNOWLEDGE OF THE MARKETS!! Without lack of knowledge how the markets work, why price moves, etc, one is not...
Impressive! i like your way of thinking

As for number 3, to me greed is somehow become a good motivation like u said. therefore greed itself should be controlled by both patience and discipline
Greed is good, as long as patience and discipline walk together with it
  • #146
  • Mar 8, 2017 4:40am Mar 8, 2017 4:40am
I agree with the basic outline of this...

I would also like to point out the common 90% statistic that gets thrown around so much. That is, 90% of traders lose. I have heard this so many times, on so many forums, and so many videos. I don't know where it originated, or how it could possibly be an accurate statistic. As far as I know brokers don't release their info.

The legendary options trader Dennis Richard said about his system,

“I always say that you could publish my trading
rules in the newspaper and no one would follow them. The key is consistency and
discipline. Almost anybody can make up a list of rules that are 80% as good as what we
taught our people. What they couldn’t do is give them the confidence to stick to those
rules even when things are going bad.” – From Market Wizards, by Jack D. Schwager.
  • #147
  • Mar 8, 2017 12:11pm Mar 8, 2017 12:11pm
From all reasons one of them is due to lack of exact money management, and despite of good trading knowledge it is not probable to make profit with great consistency , if you don’t know how to manage money, can someone explain more about what actually money management in Forex trading ?
  • #148
  • Mar 8, 2017 8:13pm Mar 8, 2017 8:13pm
Traders lose because they pay for systems and indicators that don t work.

Traders are lazy to learn and they are looking for fast way money earning system.
  • #149
  • Mar 9, 2017 2:42pm Mar 9, 2017 2:42pm
another mistake i do is spending more time testing hundreds of indicators instead of learning price action
  • #150
  • Mar 10, 2017 1:42am Mar 10, 2017 1:42am
Quoting DanielAr
another mistake i do is spending more time testing hundreds of indicators instead of learning price action
Some systems and indicators are worth their weight in gold, but it is also true that price action must be your foundation, the two work hand in hand, and when mastered are a lethal weapon, GW.
IMPROVISE ADAPT OVERCOME
  • #151
  • Mar 10, 2017 7:37am Mar 10, 2017 7:37am
The emotional way of trading; the leading cause why traders lose. When you do whatever your emotions tells you, on the drive of the moment, you are doing precisely what the ‘other traders’ are doing, and this is not considered usually helpful. In addition, Most of the traders I know lose simply because they have not a winning approach. Hence, they trade without defense.
  • #152
  • Mar 11, 2017 8:26pm Mar 11, 2017 8:26pm
Because they focus only on the technical trading method and forget about other important factors like Money Management and Psychology.
Vtayha7788 has suspended me and Twee is missing!!!
  • #153
  • Mar 12, 2017 1:36pm Mar 12, 2017 1:36pm
Not knowing the dynamics behind market.
  • #154
  • Mar 12, 2017 11:55pm Mar 12, 2017 11:55pm
lost in the forex business it is to not have the skill trading skills possessed, everything there is a process that we must absorb and enjoy whatever it is therein, love or sorrow, good and evil continue to endeavor to become better, as well as in forex trading business must do in learning to do as much as possible if the benefits to be obtained
  • #155
  • Mar 13, 2017 7:03am Mar 13, 2017 7:03am
Many traders lose simply because of having trouble executing trades. This is, as a result, of the amount of anxiety you have at the moment you need to execute your trade. However, If you are a beginner, trade with a sum of money that is sufficiently small so that you can stand to lose it, but huge enough so that you will sense the pain if you do. Otherwise, you are misleading yourself.
  • #156
  • Mar 16, 2017 3:52am Mar 16, 2017 3:52am
FX is an expensive game. Before you enter a trade, you are subjected to high cost.

If you don't have at a few grands for trading, it is pretty hard to keep up with the cost of platform that you are using.

If you trade the majors, spread is ok. Take note if you trading the cross pairs. Its ard 50 pips additional on conversion rate for entry trade and exit trade.

Broker's quote is also 2-4 pips.
  • #157
  • Mar 16, 2017 5:22am Mar 16, 2017 5:22am
I want to advice very good article about this. There are good explanation about why traders loose at the first time and what mistaces you shouldn't do. For example do not change strategy often, do not seek for big incomes: Spending < Income = Enough! This article gave me good understanding of how is right trading should be. Here is it: http://www.tradeciety.com/become-a-profitable-trader/
  • #158
  • Mar 16, 2017 5:57am Mar 16, 2017 5:57am
Quoting Nt86
FX is an expensive game. Before you enter a trade, you are subjected to high cost. If you don't have at a few grands for trading, it is pretty hard to keep up with the cost of platform that you are using. If you trade the majors, spread is ok. Take note if you trading the cross pairs. Its ard 50 pips additional on conversion rate for entry trade and exit trade. Broker's quote is also 2-4 pips.
Spot FX is cheap as hell. Plattforms are mostly free and with a good broker you have overall costs (Spread + Commissions) of 1-2 pip per Trade for most pairs.
"Men Who Can Both Be Right & Sit Tight Are Uncommon" ~ Jesse Livermore
  • #159
  • Apr 2, 2017 11:00pm Apr 2, 2017 11:00pm
the reason for the loss in the main business by not having the ability and the knowledge of the maximum. And to remind you of forex risk, so do not be surprised right in the loss in forex if it does not have the knowledge or experience.
  • #160
  • Apr 3, 2017 9:03am Apr 3, 2017 9:03am
Do you know that the most common reason why traders lose is a lack of Forex education? That is why it is fitting not to start Forex trading first without getting some good education. You will receive the benefits cutting your losses short and also avoid making huge mistakes while trading. Many traders also lose in forex because of having no good trading strategy.
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