Why Traders Lose
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    Registered user Nizar's Avatar
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    Why Traders Lose

    Why traders fail

    A recent study in America revealed that 75% of speculators and day trader lose everything in two years. The strange thing is that this ratio was fixed for nearly the past 150 years (duration and presence of speculation records ).
    Why do such a high percentage lose everything in spite of technological progress and means of technical analysis and immediate access to news ? It is an internal problem in the hearts of traders.

    Traders at the beginning tend to divide into two parts
    1-those who follow the conjecture, guesswork , recommendations and signals from here and there. Not surprisingly, this category will not be able to continue.

    2- the absolute solution (Holy Grail)seekers whether it is a trading system or the best indicator,
    The mechanism for achieving profits in currency market depends on three things and few are the ones who care about it
    1. Psychology of the trader
    2. Market Analysis
    3. Discipline and strict money management
    It is easy to open a position but your exit point is what really determine whether you will make profit or not so giving extra attention to entry points gives a false impression of control and success and lead to neglect the tow keys of success
    • Psychology of the trade
    • Money management
    Almost anything else does not matter. I am convinced that trading is a mental business so here are some advices :
    • from the beginning of your trading you must act as professional disciplined trader and not as a beginner who is not committed to trading rules.
    • don’t take losses personally and make them reason to introduce negative thought to your mind.
    • changing your stop loss point when the price approaches it will cause you many future losses even if your current trade ends profitable because by this behavior you have established a bad trading habit.
    • your vision for the type of future you want will lead to achieving it, that is a fact.

    • trading is a business, deal with it this way, you worked hard to build a good strategy so focus on one thing which is to apply this strategy to the end.
    • when you talk to yourself people will think you are crazy but that only mean that you have had a good advice (positive neurolinguistic programming)
    • You should be very committed to your style of trading.
    • In the heart of trading and investment remains a dilemma which is capital protection, a trader should never lose his capital in the same time he should seize the chances he gets, it is a balancing process.
    • trader should calculate the risks and potential profits and keep them in balance, And it is well known that if you did not run the risk you will not gain anything .
    • Hesitation leads to profit loss, also premature entry leads to loss.
    • Great wealth was achieved by staying in the trade for as long as you can during market fluctuations.
    • Those who are successful in this market make a lot of small losing trades and very few larg winning trades and those who lose in this market make a lot of small winning trades and few big losing trades.

    So, the equation leading to success can be summed up in the following: cut your losses short and let your profit run obviously traders can not apply that .
    It is easy to say and difficult in the application.
    Why do we practice acts that work against us? And why repeat them over and over again ?
    It is clear

    Things and opportunities always seem clear after they already happened , but during price fluctuations we need to experience and special skills in order to see clearly, Feelings and emotions lead to blurred vision and inability to make the right decision .

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    most of the new trader loss this have only one cause they want to make money by the short time and this is one of the cause for loss money and i think by the short time they want to make money and for this they want to make money and for this they take risky and at last they fail in loss

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    Registered user Nizar's Avatar
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    Quote Originally Posted by noman9t8 View Post
    most of the new trader loss this have only one cause they want to make money by the short time and this is one of the cause for loss money and i think by the short time they want to make money and for this they want to make money and for this they take risky and at last they fail in loss
    that could be a main reason for loss,i think if a trader wants to make money in a very short time or double his account daily then he should be a casino gambler not a professional forex trader.

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    Registered user maly's Avatar
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    which causes a lot of loss when a trader in forex transactions, for example it could be in because of too much use when the transaction lots, can also incorrect in their analysis before opening a position, and can also be caused due to too emotional when they deal in forex

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    most of the new trader think this is the money making machine by the forex trade they will be make money by the short time and for this they think by the forex trade they will be make money by the short time and this is the best for make money way and i think this is the best for make money by the forex trade

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    There are many factor are involve in the loss in the trade. Greed is the big factor in the trade
    most of the new trader over trade and not comply with the money management and risk control.
    over trading and not use the stop loss and take profit will lead to loss in the trade . we should not
    be trade over 2% of the account balance and must be use risk control in every trade.

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    Registered user maly's Avatar
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    Quote Originally Posted by noman9t8 View Post
    most of the new trader think this is the money making machine by the forex trade they will be make money by the short time and for this they think by the forex trade they will be make money by the short time and this is the best for make money way and i think this is the best for make money by the forex trade
    but if we are wrong in doing this then forex forex creator is no longer a money machine for us, instead will make the contrary, if one runs the forex forex can be a machine that could run the fastest money for us, therefore we have to be patient to learn forex gradually from the most basic

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    in my opinion traders lose money for many reasons : first less of knowledge ; many traders don't spend enough time to learn , they are in hurry to make money.
    2- less of emotions control : all traders have a big greed and less of patience .
    3-following a bad strategies
    4- they don't make a clear plan .
    5- making big risk with small capital.
    all this factors let us lose all the time in forex trading.

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    Registered user Nizar's Avatar
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    Quote Originally Posted by zdaina View Post
    in my opinion traders lose money for many reasons : first less of knowledge ; many traders don't spend enough time to learn , they are in hurry to make money.
    2- less of emotions control : all traders have a big greed and less of patience .
    3-following a bad strategies
    4- they don't make a clear plan .
    5- making big risk with small capital.
    all this factors let us lose all the time in forex trading.
    all the points you mentioned are a serious causes of trading loss although some of them is more serious than the others and it is a first step that we put our hand on the cause of the loss as you can not treat something unless you figure out what it is first,knowing the cause of everyone's loss is essential to deal with it.

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    Rookie martyn's Avatar
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    Most experienced traders lose because they do not make good money manajeen. I think this is money management to consider in forex trading because it involves the whole of the capital that we use in forex trading. Although we already have a strategy that is very accurate, or the psychology of trading we are stable, but if we have poor money management then we are still easy to get lost in forex trading.

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