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

Comprehensive Guide to Gold Trading: Strategies and Considerations

Gold, with its intrinsic allure and historical significance, has captivated humanity for centuries. From adorning jewelry to serving as currency, gold's rarity and lustrous beauty...

MT5 in Copy Trading and Social Trading

MetaTrader 5 is a leading trading platform with many trading opportunities, from providing technical analysis tools to creating trading group chats...

Everything You Need To Know About Investing In Crypto In 2025

Cryptocurrencies are quickly becoming one of the most dynamic investment opportunities going into 2025. With regulatory frameworks shaping the market and innovations taking over, staying informed has become more critical than ever.

How Much Money Can You Make Trading Forex? A Comprehensive Guide

Forex trading has witnessed a surge in popularity as individuals seek opportunities to profit from financial markets. However, it's paramount to approach forex trading with realistic expectations...

Mastery in Forex Trading: The Path to Becoming a Forex Expert Trader

In the intricate world of foreign exchange (forex) trading, the term "forex expert trader" refers to an individual who has not only mastered the basics but has also developed...

Why Is Inflation So High?

You may have noticed that the prices of your favorite products have recently increased quite a lot. The reason is the incredibly high rates of inflation impacting economies of countries all around the world...

Copycats: How social trading is changing the game

The landscape of investing has undergone a remarkable transformation. Traditional investment strategies are being challenged...

Can you trade forex forever?

Forex trading has become increasingly popular as a means of becoming financially independent. This is largely due to how easy it’s become to access the forex market...

Ten Forex Trading Tips for 2023

The foreign exchange (forex) market is the largest and most liquid financial market in the world, with a turnover of more than USD 5 trillion every day...

How to Trade Gold: A Comprehensive Guide

Gold has long been a highly prised precious metal, known for its lustrous appearance, unique properties, and historical use as a form of currency. While many global currencies...

A Complete Guide to Social Trading

Social trading has been rising in popularity among young traders due to the transparency that comes with this option. Like its name suggests, social trading can be thought...

The global financial trend of the hour: Forex investments

Quite the confusion is afoot in the financial markets. Tighter regulation, rising inflation, energy sector disruptions, social unrest and wars have taken a toll on the world's economies. How come Forex, as a means of investment...

Top 5 Black Friday scams and how to avoid them: make your holidays stress-free

OctaFX has prepared a list of security tips that will come in handy during this year’s Black Friday and Cyber Monday...

CFD Trading: Everything a Trader Should Know

CFD trading - where the financial markets buzz with opportunity and the potential for growth is as vast as your ambitions. At its core, CFD, or "Contract for Difference", trading is more than just about speculation on the price movements of various assets...

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...

Behind the headlines: questioning the reliability of financial media

If you’ve been performing both fundamental and technical analysis of late, you may have noticed that some financial media and mainstream news channels...

What Is The Best Way To Invest Money When You Don't Have A Lot?

As we know, trading is impossible without starting capital as with 0 on the trading account, your profit will equal zero too. So, what can be done if a trader doesn’t have a sufficient amount to start investing...

Random Reinforcement: Why Traders Lose Money

Are you having trouble with trading? Have you started losing money after a long period of successful trades? Many traders experience the same problem and can’t understand...

Understanding Lot Sizes: Balancing Risks and Rewards in Forex Trading

The trading arena operates in a complex ecosystem that is constantly balancing between potential gains and inherent risks. At the core of this delicate equilibrium is the crucial concept of lot sizes...

Common Emotions that affect trading psychology

A trader’s psychology can have a significant impact on their trading success. This is because psychology is driven by one’s emotions and behaviours, all of which drive trading decisions, good or bad...

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.