Why people lose money in Forex Trading?

Stonesong posted:
Often, beginners start trading with large first deposits, as a result they lose it.

True! That's one of the major reasons why they loose.

I think there is lack of experience and knowledge about this market, most of the people do Forex just for thinking they will win by not having great strategy, they trade for luck not for strategy.

kaatib posted:
I think there is lack of experience and knowledge about this market, most of the people do Forex just for thinking they will win by not having great strategy, they trade for luck not for strategy.

Fully agree! They don't understand that trading on Forex is a certain kind of art. And you have to find the perfect strategy for you, not just luck.

I think they lose because of discipline not willing to do the hard things that require success.

Get rich Quick mentality is a biggest killer of many forex accounts

It is necessary not to spread out and use all trading methods at the same time, a sequence of actions, a cold-blooded approach to trading.

Dictiony posted:
According to the my point of views mostly trader's loss their money in Forex due to the lack of knowledge and confidence also greed is the main factor of lose money, for that reason everyone must give enough time to proper analyze the market and trade with less risk, then sure have much benefit in this business.

The question is why should they be profitable out of nowhere
You can't be dentist or rocket sience engineer without years of study
Why should be Forex any different?

I agree the beginners who come to trade on forex think they'll be sprinkled with mountains of gold. Because of their self-confidence and inexperience, they lose all their initial capital and get disappointed. They cannot initially understand that trading is quite complicated and that it takes a lot of effort to make a profit. Therefore, I advise all beginners to open a demo account and feel the principles of trading.

kaatib posted:
I think there is lack of experience and knowledge about this market, most of the people do Forex just for thinking they will win by not having great strategy, they trade for luck not for strategy.

Yes, agree with you if you have no skills, knowledge and experience then it will be difficult for you to make money in Forex and you can face loss in the trading.

kaatib posted:
I think there is lack of experience and knowledge about this market, most of the people do Forex just for thinking they will win by not having great strategy, they trade for luck not for strategy.

You are right. People have huge misconceptions regarding forex.

First of all, people lose money because they do not fully understand what they are doing.

Most often, blame is lost due to human greed

People lose money in forex and especially the new traders because they join forex with the wrong idea. If there is one thing I am sure of it is that forex will never make you rich. The ads ake it seem simple but the reality is quite the opposite. If al you can think about is that when you join forex then you will lose a lot of money.

People lose money in forex becaue they do not take their time to learn. Someone joins forex ad a week later they are already trading. That is a very big mistake. If you do not have knowledge in forex then you will not make it far. People fear learning because there is so much to learn and it is very complicated in a way.

People lose a lot of money in forex because they take big risks. Trading with high risks guarantees high returns but not in all situations. Those who are not ready to trade patiently with less risks are the ones that have to face these losses. If they take their time then they would not make such losses. Do not rush because things rarely work out that way.

The market is so arranged that many people lose their accounts

Akos53435627 posted:
The market is so arranged that many people lose their accounts

can you elaborate more on this
what does mean market is arranged?

I lost money because I just wasn't patient. The mistake was putting in more money to get back those losses too haha. The hardest thing to understand was that you dont have to trade everyday or hunt for trades every session. Nowadays I dont even trade everyday, it's like a part-time gig that earns great returns. Ignore the noise from social media.

There can be many reasons behind a trader losing money like lack of skills, poor knowledge, impatience, etc. A trader has to work on many things to earn good in forex.