There is a lot of reasons why traders lose money, one of them not discussed so much is not sticking to your trading system, in my case I had a lot of trading ideas, thats all I could think about and that made me switching from one trading system to another running them all a very short time, if I lost a few times I would disregard it and move on to another, or testing out my ideas I tought would work, same thing there, I didn’t give it enough time, I didn’t realise at the time that it takes a lot! of trades before the probability starts to level out. so my advise is find a system test it first, if it’s profitable, stick to it. I would say this is a emmotional thing or problem, having a lot of patiance is important, if I had given all of my systems and ideas the time they needed, allmost all would have been profitable, but thats over the long run, trading is not about making fast money.
Common mistakes especially for newbies is trading without enough knowledge.
the following are the most common mistakes traders in forex make:
- Using Too Much Leverage
- Over Trading
- Picking Tops and Bottoms
- Buying Systems on the Internet
5.Taking Profits too Early
The very first mistake especially for beginners is greediness and believing that when they trade they could earn double, triple and more. And didn’t see the disadvantages and risks involved.
I totally agreed with you, truly real money is not involved in demo account so it make newbies to trade with less emotion. when it come to real money, traders tends to trade with real emotion. Since losing in forex is normal and in every trade there is bound to be loses, every trader should learn to have self control over his or her trade. If at all a new trader wants to trade via live account, He should start up with little money, I mean he should trade with what he can afford to loss.
Yes and i am one of them , i am join this business because i see forex will give big money as instant . then i start this business with bad mindset which i can reach man in short times , but it is not true instead this is bad mistakes that happen very common for every trader
Like your thinking, I think sticking close to the underlying trends has to be worth morte of a look. I am a newbie also, but I would be keen if anyone can recommend reading on this kind of trend. Thanks!
Certainly emotion plays a vital role in a traders career. Thus, one should be well in control of their trading emotions such that they can excel with the planned trade. We need to ensure that we are well versed with the market action and play according to the technical aspects with strong reasoning rather than emotional flow.
Start Forex without knowledge about Forex
Play with emotions
I think that is most common mistakes.
No doubt about that , but between start forex without knowledge and play emotion , i think majority traders will face emotion is common mistakes for them , and i am sure almost of them know it but unfortunately they hard to solves this problem
1 word, 4 letters, LAZY
How many newbie threads on BP along these lines…
“What is quickest way to make big money”
“What is SL and TP”
“Need free EA that is always right”
“Looking for mentor”
People who cant be bothered to learn and expect to be spoonfed, really grinds my gears
the most common mistakes that i have encounter on fellow traders are: Greed. Lack of knowledge, impatience, and the illusion that they can buy a supercar the next day. no. trading the fx is not a gambling or whatever. its an investment. a buissness. and it must be treated like one otherwise it will cost you!
The thing is, that in order to succeed over time you need ALL elements to work well. If even one of them is not in place you will probably lose. For example, you can be self disciplined with a winning trading and risk management strategies, but you choose a bad broker - you will probably lose. Or you can have the best broker, a winning strategy to enter/exit the market, the best broker in the field. and be free of emotions, but you don’t know how to apply a proper money management system - you will lose. And there are many other factors… So dedicate the time to learn all aspects of trading. Otherwise, you will always find another reason for losses. The good news is that once you’re on the track its really really worth it!
For me the common mistake here in forex is for not using stop loss and lack of knowledge on how can we avoid difficulties while we trade.
What is a good broker? I’m currently using Traders Way?
Money management and good plans for trading or lack of knowledge about forex, these must be the reason why traders fail and encounter loss on forex trading. we must remember that learning all about forex trading is important to know for us to have profitable trades.
Hello, I believe that Market Timing is the most important expertise you must master to become a successful trader. This is where the majority of traders fall by the wayside. Study your own trading weaknesses then form a plan to combat them. Perhaps one of your weaknesses is to have no plan ready in the first place. I recommend writing down your plan before you trade, as once on paper you are more likely to adhere to it.
Hello, I think that there are some traders who are not well familiar with forex trading and its working, have great wish to make huge profit in short time, greed and fear also play role to lead loss in trading. These are some common reason and the question is “WHY DO TRADERS LOOSE MONEY” The real why is that they violated the rules of equity management and took on too much risk and overtraded their account. So, my suggestion is to get really familiar and make a research about forex trading and then start trading with real money!!!
if you think about what money in its real world terms when trading you will fail
when you walk up to the screens and trade …its just chips (poker chips - worthless)…disconnect its worth or you will fail over time …especially when you can take the stakes higher …your subliminal mind will confuse you as it will panic over what “things/assets” you are potentially losing
ive met a lot of good potential traders that couldn’t make the jump…nothing wrong with it …depends how you are wired inside
I was kinda lucky as I saw a lot of money moving around from an early age …my family were bookmakers …so gambing / speculation / risk was part of growing up to me and normal
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