HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
NordFX information and reviews
NordFX
86%

Why forex traders lose money?


In the era of high technologies and financial prosperity, many people dream to earn more and do less. Many of them are qualified specialists. They are ready to take risks and in chase of profit try to work in the forex market again and again. But why do some people succeed in their deals and others lose constantly?

Statistically, about 90% of traders incur losses and the 10% become really good forex brokers. What do the last never do while trading?

The reasons of losses

  1. Perhaps, one of the crucial reasons why traders fail is that they have too little of self-control. They cannot resist the temptation of excessive trading and using high gearing.

  2. Traders try to go against trends for some reason, even if they know that according to analyses they have more chances to win by following a trend before its close.

  3. The rejection of failures and mistakes. Many people tend to shuffle off their blame on to somebody else. However, only a trader himself is guilty in bad trading. If you notice that you lose money with an enviable constancy, there is not your broker’s fault, nor the result of bad quotations or false recommendation, nor hardware error. There are no mysterious “they” who steal your money. That is why best binary options brokers always win, as they take full responsibility for their actions.

  4. Excessive trading or its absence during major time frames also leads to losses. Traders, who just jump in the market and go out full of emotions and avidity, suffer not only the quantity of lost deals, but also bear big spreads’ costs or commissions during a year. The secret of success is in self-discipline and patience. There are too many “noises” and “debris” among shallow time frames. So, if you want to improve your trading you have to go beyond your borders and start to work with bigger time intervals.

  5. Gambling. Many traders accept excessive risks: after several successful deals they want more and risk more and this leads only to the loss of what was won. This happens usually with those who do not know yet that they should take chances with the same amount of funds in every deal. Over-emotional people also cannot resist gambling. Forex is no poker. That is why a gambler never becomes a good trader: his way of trading is not one of the best forex strategies. The main point is in honing the skills to know what to search for in the market every time when switching on the trading platform. So, if a trader is confident in every deal, there is no reason to risk with bigger funds. They should be approximately the same in the ratio with the whole investment.

  6. Bad management or its absence during trading causes constant losses in money. Every trader after some practice can forecast a short-time market movement, at least to enter an open deal and receive some profit from it. Afterwards difficulties occur. Most of the traders have no trading plan how to manage positions. This plan of actions should be made before a trader enters the market. Besides he should also think over the exit. The more considered decisions are, the better work will be. The trading plan should be written and followed.

  7. An accidental entrance in the market. Every trader should work out a good reliable trading strategy to avoid fortuitous deals. If you start examining and using one strategy, stick to it and do not jump from one to another, because you will lose your time and money in the end.

  8. Expectations vs. reality. A trader expects sometimes too much and supposes that if his funds are 400$ he can earn twice more in a very short period of time. Or a trader may think that he is very experienced because he has higher financial education and he knows what and how to do to attract luck and profit. All these are vain dreams and have nothing in common with reality. Only practice and labor can make experience.

Everybody has the same chances to succeed. Every trader can make money in the market and enter the Forex Advisors Rating. If there is a trading account and incoming profit is constant (even if it is not big), it will lead a trader to success. The habits and succession of actions should be trained every single day.


RELATED

Why Do Central Banks Have No Power Over Inflation?

Fighting global inflation, now at its highest point in decades, has become a number one priority for major central banks around the world. Monetary policy measures...

How much do day traders make?

The trading world encompasses a lot of different styles depending on how long traders hold positions open for and how often they are willing to trade at all...

Who has lost the most money ever on the stock market?

Who has lost the most money on the stock market? Continue reading today's article to learn more! In the world of markets and trading just as profits take place on a daily basis, losses are also recorded on a daily basis...

What Makes Bitcoin Valuable?

The digital currency Bitcoin has a dedicated following, regularly makes headlines and inspires countless investors to consider making...

Navigating Ethical Challenges in AI-Driven Trading: Bridging Wealth Inequalities

AI-driven trading has undoubtedly introduced numerous advantages for traders. Its ability to swiftly process vast data, formulate solutions, and execute trades within milliseconds...

Deciphering the World’s Foremost Economic Calendar

When discussing the world's principal economic calendar, one cannot bypass the US. The reason behind this is twofold: the supremacy of the US dollar in global transactions...

Deciphering Market Corrections: A Guide to Identification and Trading

To navigate the intricate realm of financial markets successfully, one must possess not only a profound understanding of market trends but also the ability to discern subtle indicators that herald significant shifts...

Should I Have A Trading Plan?

A trader without a trading strategy is not a trader. Whatever the strategy is, it will help you make sense of the chaos in the markets. In this article, we will tell you what a trading strategy...

Federal Funds Rate vs Discount Rate

In 1913 the USA government passed a law, according to which...

Correlation, Portfolio Returns, and Strategic Hedging

The dance of correlations within a portfolio is a crucial subject for both experienced and budding investors. At the heart of investment strategies, understanding correlation not only protects the portfolio...

The Importance of Fundamental Analysis in Forex Trading

In this article, we discuss the importance of fundamental analysis in forex trading and provide an overview of some key economic indicators.

Using leverage safely in Forex trading

The use of leverage is undeniably popular in the forex space. This is largely due to its ability to increase a trader’s potential return on investment...

Cross Hedge-What Is Cross Hedging In Trading?

In the world of finance and investing, where uncertainty and risk often reign, savvy traders seek innovative strategies to mitigate potential losses and maximize returns...

Weekend trading

The forex market typically operates 24 hours a day, five days a week, from Monday to Friday. However, some brokers offer the option of weekend trading...

Stock Buybacks: Why Do Companies Buy Back Shares?

In recent years, buyback programs have become one of the growth drivers of U.S. stock markets, creating demand and reducing supply. Corporations have proved to be quite prominent buyers...

The Gold Standard: A Comprehensive Look into the Advantages of Gold Trading

From ancient empires to contemporary financial systems, gold has long been recognized as a potent symbol of affluence, security, and durability. Its timeless allure has established it as an instrumental asset for traders and investors...

Conquering Emotional Barriers To Profitable Outcomes

Investing is an essential part of personal finance, providing an opportunity to grow wealth over time. However, many people are deterred from investing due to perceived...

What Are Market Trends?

Have you ever wondered what a market trend is and how to spot it? If so, this article is what you need. A market trend refers to the general direction in which a particular market or asset moves over time...

The Evolution of Copy Trading: A Comprehensive Guide

The financial markets, long regarded as an arena reserved for seasoned professionals, have been democratized by technological advancements. At the forefront of this revolution is copy trading...

Pegging in Crypto: Navigating Stability in the Digital Asset World

In the ever-evolving world of Cryptocurrencies, understanding the nuances of terms like “pegging” is crucial. Pegging in the realm of Crypto refers to anchoring the value of a digital asset to another asset or a basket of assets...

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.