8 Reasons FOREX Traders Lose Money

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Evey Forex traders lose money at some point in their trading life. Regardless if you trade stocks, futures, or forex, most traders simply lose money while trading. So you are probably curious why this is a fact? I still remember my first winning trades, but it was more luck than anything else. Like most beginners, I gained some profit, but it had nothing to do with knowledge. Statistics show that over 78% of all forex traders lose money and some quits trading. New traders especially struggle a lot to become profitable. This post to help new forex traders understand more about the pitfalls of forex trading.


To make it easy, these are the eight most important reasons why forex traders lose:

LACK OF KNOWLEDGE

This is probably the main reason why forex traders lose money. I’m trading for thirteen years and still make errors. So why people think they can beat the market after looking at a one hour webinar. I lost money for a long time because I thought the same thing (I didn’t watch any webinar, and it probably wouldn’t make a difference).

If things are not failing, you are not innovating enough
Elon Musk

Now, Most people remember making mistakes that hurt you. Either getting punished for something wrong you did or when you fell off your bike. The same rule applies to FOREX trading. If a lousy trade doesn’t hurt, you will probably forget about it and do it again.


How to fix

• before start FOREX trading, try to see “the big picture.” There are various sites where you can find a lot of information.

To be continued