Why do Forex Traders Lose Money

[muhammadlakhani]

It's commonly known that most forex traders fail. In fact, it's estimated that 96 percent of forex traders lose money and end up quitting. To help you to be in that elusive 4 percent of winning traders reply with your personal view

[muhammadlakhani]

1. Low start up capital
Most currency traders start out looking for a way to get out of debt, or to make easy money. It is common for forex marketing to encourage you to trade large lot sizes and trade highly leveraged to generate large returns on a small amount of initial capital. You must have some money to make some money. It's possible for you to generate outstanding returns on limited capital in the short term. However, with only a small amount of capital and outsized risk, you will find yourself being emotional with each swing of the market and jumping in and out and the worst times possible

[muhammadlakhani]

Risk management is key to survival. You can be a very skilled trader and still be wiped out by poor risk management. Your number one job is not to make a profit, but rather to protect what you have. As your capital gets depleted, your ability to make a profit is lost.

[muhammadlakhani]

3. Greed
Some traders feel that they need to squeeze every last pip out of a move. There is money to be made in the forex markets every day. Trying to grab every last pip before a currency pair turns can set you up to lose the profitable trade that you are sitting on.

[muhammadlakhani]

4. Indecisive Trading
Sometimes you might find yourself suffering from trading remorse. This happens when a trade that you open isn't immediately profitable, and you start saying to yourself that you picked the wrong direction, and then you close your trade and reverse it, only to see the market go back in the initial direction that you chose.

[muhammadlakhani]

5. Trying to pick tops or bottoms
Many new traders try to pick turning points in currency pairs. They will place a trade on a pair, and as it keeps going in the wrong direction, they continue to add to their position being sure that it is about to turn around this time. If you trade this way, in the end you end up with much more exposure than you planned, and a terribly negative trade.

[muhammadlakhani]

6. Refusing to be wrong
Some trades just don't work out. It's human nature to want to be right, but sometimes we just aren't. As a trader, sometimes you have to just be wrong and move on, instead of clinging to the idea of being right and ending up with a blown account.

[muhammadlakhani]

7. Buying a System
There are many "forex trading systems" for sale on the internet. Some traders are out there looking for the ever elusive "100 percent accurate forex trading system". They keep buying systems and trying them until finally giving up deciding that there is no way to win.

[mh9]

According my opinion forex business is a great opportunity for us and we can earn huge money form forex business if we have proper knowledge of forex trade and must be careful about our forex trade

[habib]

Yes, the money's nice to get out of in the proper way The question arose whether, in order to park the United States. Forex general purpose is to encourage you to trade with a great amount of traffic and a lot of topics to generate high returns with little in the beginning of the chapter. To pay the money. In order for the city to generate returns in the short term than the coaching of basketball. However, with a small amount of capital and the risk of outsized, you will find that you are in the market and the movement of the swing between the leaped up, and very bad, and times to be made