why most traders lose money ?

[Andromathis]

They fail, because most often their trading decisions are not based on reliable research or proven trading methods.

 

[Pretty6]

They fail, because most often their trading decisions are not based on reliable research or proven trading methods.

That's right. Traders often skip the research part and out of hurry and greediness, take irrelevant decisions.

 

[Andromathis]

Many lack patience, and there is a lot of greed, and in the end there is disappointment

 

[Grace wilson]

why most traders lose money ?


Some one please give answer of this important question.

It is quite possible for traders to lose money when they are acting upon emotion and they have a lack of patience.
Timing is very important in trading and sometimes you have to wait a long time until you get a profit out of your trade. People often can’t control their emotions and if they start losing money at the very beginning they are more likely to close a trade with a small loss than to wait for the right opportunity to earn profits.
One should learn to be more patient. Don’t panic if you start loosing money straight away and always have a budget that you are ready to lose. Nothing good comes over night.

 

[Meztijar]

Because really not ready for the difficulties that this has arisen.

 

[Brayden]

Impatience and lack of knowledge can be major reasons

 

[galaxy]

• The ability of unable to take control of the emotions
• The lack of knowledge or skill
• Ignoring the potential of demo trading
• Poor level of patient
• Unable to overcome the greed

 

[Brayden]

• The ability of unable to take control of the emotions
• The lack of knowledge or skill
• Ignoring the potential of demo trading
• Poor level of patient
• Unable to overcome the greed

Yes those are major reasons. Lack of knowledge is the one of the most dangerous ones for me.

 

[maureen lewis]

When you are not having proper knowledge of forex trading, Impatient, lack of strategies and dicipline. You have not done analysis of the market, You tend to loose money.

 

[lawrencefx]

why most traders lose money ?


Some one please give answer of this important question.

Most traders dont follow proper risk management.

 

[galaxy]

Yes those are major reasons. Lack of knowledge is the one of the most dangerous ones for me.

Yes, I think this is the first and foremost when it comes to why traders lose money, imo

 

[Torinnarat]

because many who lose money on trading are newcomers who rely only on their ambitions

 

[Torinnarat]

I would say lack of experience, trading requires a lot of experience to even become a professional in it.

I started trading using demo for a long time, then read several topics on trading strategies before live trading.

that’s all right, but many people simply think that having started doing this without any preparation, they will immediately start earning, oh, these ambitions

 

[Uaredaty]

There might be a lot of reasons why traders lose money. Sometimes it might be just wrong judgement or false signal from market. On majority of cases it would be luck of experience

 

[Finarm]

Well, there are a lot of reasons for that. Consider a situation in which everyone could become a surgeon in one day. How high would be the risk of failing the surgery? Similarly just because you are allowed to trade, doesn't mean that you are going to be successful. "Most" traders are not professional but those who think that they can earn some easy money (which is not even true) and the rest are the experienced ones who invest a lot of time and effort into learning.

 

[Sheldon56]

There might be a lot of reasons why traders lose money. Sometimes it might be just wrong judgement or false signal from market. On majority of cases it would be luck of experience

True! Lack of experience and lack of proper knowledge as well.

 

[lenon]

I generally agree with everything noted in this thread. But, lets look at topic from positive side. If you use your lose deal as your best teacher, than you will probably end up in a row of winning deals after some time. Right?

 

[Trader Tom]

KIS is the secret to success in trading ; Knowledge, Intuition, Skill. Knowledge can be gained both by reading & by doing a lot of trades. When u do plenty of trades, not only knowledge increases, but intuition & skill too will improve. What people normally do is , they open a demo or real account , & risk , lets say, 10% per trade. , blast the account to zero, get frustrated & opens another account & blasts that too or even quit trading. On the other hand, if that person had risked only 1% per trade, he would have given himself oppurtunity to trade atleast a 100 trades in that account, thus he would have improved his knowledge, intuition & skill from those huge number of trades, instead of getting frustrated & leaving trading.

 

[vicjon1995]

When the trader acts upon emotions and loses patience , there are high chances of losing money.

 

[Dora_WalletInvestor]

Well, there are a lot of reasons for that. Consider a situation in which everyone could become a surgeon in one day. How high would be the risk of failing the surgery? Similarly just because you are allowed to trade, doesn't mean that you are going to be successful. "Most" traders are not professional but those who think that they can earn some easy money (which is not even true) and the rest are the experienced ones who invest a lot of time and effort into learning.

I love this analogy. You're right, it's no wonder so many inexperienced people come to the market - after all, a little over 20 years ago forex trading wasn't even available to the general public.