why majority of traders lose money?

[Reticular]

Traders who lose focus. This focus can be the focus on the market or focus on themselves. Focus on their trading strategies, focus on their trading plan, etc.
While focusing on the market, a trader should know their capital, their strategies, risk-reward ratio, leverage, etc. Education helps in learning all of that. If a trader does not have proper education about the market, a trader fails to trade and profit. A demo account helps a trader learn too. If a trader does not practice on a demo account, a trader fails due to that reason, too. Focusing on oneself means focusing on one's emotions while trading. This is crucial, and if traders journal and observe, traders might be able to control their emotions in the right way.
If they do not focus on any of these, they lose.

 

[Someecat]

This is a serious truth but still not all new traders take it seriously. All they care about is profits and when they don’t make money, they leave the market and blame it for not turning out to be a treasure for them. Had they read real stories of trading before taking the risk, their situation would have been different.

 

[Gumshoe]

Failing to adapt to the changing market conditions is a major reason why traders fail in the forex market. It’s good that you believe that you have a profitable trading strategy but if you don’t update with time, even it will fail to give you good trading results.

 

[Shaner3]

No understanding of the market. They just rush in with a half baked understanding of indicators and think they can predict which way the price moves.

 

[Descrive]

There can be many reasons why traders lose their money in forex trading. Either they are not consistent with their strategy, or lacking technical analysis. It can also be due to improper risk management. Whatever it is, a trader must be serious, patient, conscious and reflective of himself so that he can find out his mistake and correct it soon, before losing too much capital.

 

[Tomfoolery]

The majority of traders lose money because of a lack of knowledge, patience, skills, discipline, consistency, poor emotional balance, poor risk management, falling prey to ‘getting rich overnight schemes’, etc.

 

[Factualism]

It's not the forex market that's difficult, but the way people approach trading with it. There are 5 basic things that successful traders do, while most of the unsuccessful ones don't do them. They are: 1) Learn how to trade 2) set your goals right 3) find the right mentor 4) develop good trading habits 5) be disciplined and never give up.

 

[Meamonk]

It’s not easy to understand the market and determine how it will behave in the next moment. As you can get it wrong, you can be wrong at predicting the market moves and hence, making profitable trades.

 

[Semantology]

There are not many reasons why traders lose money. The most common reasons include no or lack of knowledge, wrong idea of the concept, greed, and market fluctuations. Now that everything is not in your hands, you better not expect to make profits all the time.

 

[Balshine]

Forex trading is not like any other career and not every trader is able to make it with it. What makes it even more difficult is the fact that the market is ever-moving and you can never be sure about its direction. So, it’s best to first learn and then think of making money.

 

[Eusorphia]

That’s unfortunate but true. A lot of things count for the failures of traders in the forex market like no knowledge of what they are doing, not planning how they should move ahead, following other traders and not working on improving their skills. If traders learn to find mistakes in their own trades, they will never lag behind in their careers.

 

[Isthmus]

Losing money is normal and I don’t see it as something that traders should feel disheartened about. Your losses are someone else’s profits and vice-versa. So, let other traders have some winning trades until you prepare for your next winning trades.

 

[Serimeter]

Inadequate forex trading knowledge is the primary cause of loss in forex trading. Forex is a profitable business, but like any other job, you must first understand the basics before you can get started. Many people enter the forex market because they need quick money and are unwilling to learn for an extended period of time before beginning live trading. Demo account practise is available in the forex industry, and any newcomer must master it before moving on to live trading. Many forex traders practise with demo accounts for a few days before moving on to live trading, and such traders will continue to lose money in their trades.

I agree! But the traders need to start with small accounts after practicing on the demo so as to develop the right trading psychology.

 

[Acetarious]

I don’t think it is something that we can’t think of. Making money in forex trading takes a lot of hard work and money. It becomes more difficult when you know that the market’s motion is unpredictable and you can be wrong at any time which would cost you money.

 

[Cradere]

I don’t see that as a surprise since trading is a risky business and not every trader is capable of making money. You are always at a risk of losing money and you better be prepared for that.

 

[forexnews]

It is said that almost 90% of people lose money in intraday trading. Most intraday traders lose money because they cannot understand the market movements and end up making the wrong decisions.

Lack of discipline - An intraday trader must stick to a proper plan. A full-fledged intraday plan includes profit targets, factors to consider, methods to put a stop to loss, and ways to select the right trading hours.

Not setting proper limits - In intraday trading, success lies in managing the risk. You should pre-define a stop loss and profit target when entering intraday trading.

Compensating for rapid loss - This is one of the common mistakes in the trading community. When a trader incurs a loss, he/she either tries to average a position or overtrades excessively to recover the loss. This further leads to a greater loss and put them into more trouble.

Heavy dependency on Tips - Nowadays, there are ample of intraday tips flowing everywhere on digital media. It is a common phenomenon for a trader to rely on these external tips, however, this needs to be avoided. The best way to learn intraday trading is by gradually learning how to read charts, understand structures, and interpret results on your own

Not keeping track of Current Affairs - The external news, events, and tragedies impact the stock market. Hence, it is important for an intraday trader to keep a track of the Indian and global markets. Even the performance of global markets affects the movement of Indian markets. Make your trade after the news or event has been announced. Do not speculate on the market based on the news.

I recommend choosing a reliable broker where you can practice in a real market scenario before going with your real money. I would recommend CapitalStreetFX as they offer an unlimited demo account free of cost, also they publish daily market reports and trading insights that can help you learn to trade faster. When you start real trading with real money, they offer you a bonus on your deposit, with 1:1000 leverage that truly can reduce the risk exposure.

 

[Wallflower]

It is said that almost 90% of people lose money in intraday trading. Most intraday traders lose money because they cannot understand the market movements and end up making the wrong decisions.

Lack of discipline - An intraday trader must stick to a proper plan. A full-fledged intraday plan includes profit targets, factors to consider, methods to put a stop to loss, and ways to select the right trading hours.

Not setting proper limits - In intraday trading, success lies in managing the risk. You should pre-define a stop loss and profit target when entering intraday trading.

Compensating for rapid loss - This is one of the common mistakes in the trading community. When a trader incurs a loss, he/she either tries to average a position or overtrades excessively to recover the loss. This further leads to a greater loss and put them into more trouble.

Heavy dependency on Tips - Nowadays, there are ample of intraday tips flowing everywhere on digital media. It is a common phenomenon for a trader to rely on these external tips, however, this needs to be avoided. The best way to learn intraday trading is by gradually learning how to read charts, understand structures, and interpret results on your own

Not keeping track of Current Affairs - The external news, events, and tragedies impact the stock market. Hence, it is important for an intraday trader to keep a track of the Indian and global markets. Even the performance of global markets affects the movement of Indian markets. Make your trade after the news or event has been announced. Do not speculate on the market based on the news.

I recommend choosing a reliable broker where you can practice in a real market scenario before going with your real money. I would recommend CapitalStreetFX as they offer an unlimited demo account free of cost, also they publish daily market reports and trading insights that can help you learn to trade faster. When you start real trading with real money, they offer you a bonus on your deposit, with 1:1000 leverage that truly can reduce the risk exposure.

True! Now-a-days there are so many signal providers that it has become easy for traders to depend on them. Relying on these signals does not help when it comes to trading forex in the long term.

 

[Overpoise]

Due to lack of understanding of the conditions the market is involved in. Discipline and practice helps majorly in figuring out the market sentiment and psychology. If they learn how to avoid over-trading and revenge trading, they can do better.

 

[Gymnosophy]

Traders fail because of many reasons. Out of all the reasons, the primary reason behind their failure is lack of market knowledge and impulsive decisions. Moreover, a majority of traders are not committed to learning and are not consistent - a fundamental aspect required for a successful trading journey.

 

[Famished]

A majority of traders lose money because they don’t have proper trading psychology. Because of this, they are not able to control greed and anger - which leads to over trading and revenge trading. Fear also disrupts logical thinking, and leads them to make dim witted trades.