There are many reasons why a trader losses money in forex trading ranging from entering a bad trade to sleeping off during scalping without setting a stop loss.
Let us have a list of some of the major reasons why a trader loose money in trading:
1. Not using stop loss,
2. Lack of a good and test trading plan/strategy
3. Failure to study the market before making an entry
4. Going against one's trading strategy
Most traders today those not even know anything about forex trading, they only hear and know that forex trading give a huge profits and they started trading it among the reasons why some records more loss in trading, but to me before you could go into forex trading firstly know well and practice it well have a good knowledge about it before putting in your mind and capital on it so that you wonít loss and records loss and donít be to rush about the market, and you can learn from a well and successful traders donít just follow advice without knowing what you are putting your capital into, you need to study forex trading well and you can learn with demo to try use all the strategy needed there before starting using your real capital fir trading, first know that a traders take much risk when it come to business and need to study the business well before putting in he/she money for rick.
My dear brother according to my point of view mostly we sale in loss due to two reasons from both of them first one is the the low capital and second is the the non controlling of emotions dear fellows I I was studying the essay of 12 year old trader he also writes that most of the trader lose due to their emotional factors he writes that people always want to become a rich on early bases that's why why they opens many positions and they have a low capital and also so no knowledge of trading just make the mistakes and their account stands at the level of zero this is the major point of message If you can understand and can control your emotions.
A trader face loss when he doesn't follow the rules
When he had no his own strategy and plan or if he have he didn't stick to that
He had Little knowledge or experience
He don't practice over demo account
He is impatient and want to get everything overnight
He don't use leverage and stop loss
He mix his trading with his emotions
He don't do proper market analysis
He don't rely on forex news
He trade like a gambler
He don't learn from his previous mistakes
The sum total traded in a process of individuals trading for certain commodities is not unspecified thing one hit, although a quality to a moderate degree one understand and interconnect at a time a trend is having a value and having the setback the market mindset frequently causes traders to buying and selling too aggressively or go counterbalance to trends that is a sure procedure to obtain a given end result for disaster.
Majority of the currency traders begin one's life looking for a means to go out of money that one person or entity owes or is required to pay to another, generally as a result of a loan or other financial transaction or to make easy total value of liquid assets available for an individual or other economic unit such as cash and bank deposits. It is usual for foreign exchange one who sells goods at a market to motivate one to trade huge lot size and trade using high ability to earn very high returns when operating at high capacity utilization of a facility to create big returns on a little amount of opening capital. One should have an indefinite amount of money to make indefinite number of money and it is capable of being done for one to generate unpaid returns on amount of small to be insufficient capital in the short term. In spite of that in addition to little amount of capital and of an unusually large size risk because of high degree of leverage, one will find themselves being emotional in addition to each fluctuate or change of the market's higher level of some quantity such as price and down and enter something quickly and to exit quickly and the most unfavourable times possible.
Risk management is a crucial step to continued existence as a foreign exchange trader as in life and one may have the capacity to do something well as a trader and constant to crash or fall by low quality risk management. One's the number of a public transaction dome for private profit is not to producing a total income, but on the contrary to keep safe what one possess. As one's capital gets empty and ability to generate a profit is lost. To deliberately act in opposition to this danger and to put into practice a good risk management by place a conditional order placed with a stockbroker (or similar) to close one's position if the market drops to a specified price level and move them as soon as one have a fair profit. Use lot sizes which are fairly priced compared to his or her account capital and assuming a trade no longer makes profit, exit the trade.
A certain number of traders feel which they need to put in a difficult position by presenting two or more choices to each last is to get the better of a move in the market. There is cash to be made in the foreign exchange markets every day. Trying to grip suddenly each last smallest price increment between two currencies in foreign exchange trading before a currency pair change the direction which may cause one to maintain positions too long and set one up to lose a profit in trade one is trading.
There are a lot of reasons, but this is actually the number one reason most traders lose money on Forex: They insist on adjusting their strategy to have as low a probability of taking a loss in the short term as possible. This results in them unintentionally maximizing the amount of the loss
traders will loss their trades at some point but few traders can able to recover their loses quickly with the right money management and the rest will struggle how to apply proper money management in their trading. Every loses has different reasons with different traders attitude
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