Why people lose money in Forex Trading?

marco_mmbiz posted:
Most people are just greedy. That's a modern human thing I guess (most of our ancestors were not greedy).
Even todays winners are losing, but they're not losing that much like losers do. It's achieved with money management, together with a humble, non-greedy mind.

this ^^ !!! and people get too excited by leverage, and big lot sizes. :(

gargely653536 posted:
It seems to me that most often people lose their money due to violation of the rule of money management

You are right though. That's what happens when emotions over rule.

Unrealistic expectations can also be one of the reasons why people lose money in forex.

jaredtaylor posted:
Unrealistic expectations can also be one of the reasons why people lose money in forex.

Correct. People think of forex as some child's play when in reality it requires as much patience, hard work as any other money making activity.

There are so many reasons to loss money trading Forex.
The question is why people put real money in something they dont know?
And later lose them.

Trading is a purely psychological game. Winning or losing in trading depends on your psychology. There are many people whose lack of knowledge makes them lose in trading. In the beginning, the traders do not learn anything and due to extra greed, they increase the lot and trade and face many losses. The reason for their loss is that they don't know anything at first and then greedily destroys the whole deposit with trade. Therefore, to make a profit in trading, first, you have to learn to trade, then if you work according to the plan, you can expect something good from trading.

People loses money because of not wanting to lose, by not taking loss when they are suppose to. In forex you have to accept you are wrong when you are, and take your lose, That is how you become profiting consistently, That is my basics of being successful.

From my point of view, most people want to be rich overnight when it comes to Forex trading. But their demand is never right. There is no business that will give you 100% profit. You must accept some losses and if you cannot accept then you can never survive in Forex trading. If you want to follow this method, you have to follow money management and if you don't do that, you will not be able to make a profit for life.

Most of the traders lose their money because of choosing the wrong broker. A wrong plan or strategy also can be the cause of losing money in the market.

ElliotCooke posted:
Most of the traders lose their money because of choosing the wrong broker. A wrong plan or strategy also can be the cause of losing money in the market.

Yes, wrong broker can be one of the reasons, but majorly traders fail due to other reasons like lack of risk management, no proper skills and like you mentioned a wrong plan.

I agree with you. Every trader should think about the risk factor before trading in this risky market.

You must understand that no one is insured against risks, and losses will be, no matter how hard you try.