The reasons for the loss and how we learn about it
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Thread: The reasons for the loss and how we learn about it

  1. #1
    Join Date
    Nov 2017

    The reasons for the loss and how we learn about it

    First of all, you must know that loss is an integral part of the market. No trader always wins without losing.. The best traders around the world with more than 20 years experience... Their success rate reaches 60 or 65 in the water.

    This shows that money markets are not an easy thing. The loss of money market is more likely than profit. Something normal. Failure is easier than success in any area of life

    Causes of loss in the most common forex market and how to avoid them

    1:- dispersion between more than one strategy. and try to trade more than one strategy at the same time in the hope of taking advantage of each strategy and doubling the profit. In order to avoid this, you must focus on and deepen one strategy.
    2:- not to manage the capital well.. For example, we find traders enter a specific transaction to achieve a profit in this deal only 20%. The largest investment funds make an annual profit between 6:10 per hundred!! .. You must deepen the management of capital and how to maximize its benefits.
    3:- find the best strategy or indicator as you said.. Or in the sense that the search for the perfect way of trading is never lost or lost by a small percentage and it doesn't even exist. You need to focus on how you win the profit and the least loss of good. and less evil.
    4:- fear, greed and other negative emotions. They are known feelings for everyone. Everyone knows that it is harmful and is asserted to avoid it during trading but once the deal is opened and everything evaporates.. In order to avoid this, you must read the topics that are concerned with the psychological analysis and the psychology of traders.
    5:- small capital.. I see that the capital is 90 in a hundred percent of the success in the money market... For example, who has a capital of $100 and wants to earn a profit. The fair value of profit can be 20 per year. Does it satisfy $20 a year profit... Or to have a capital, for example, $500,000. The same percentage is 20% annually. $100, 000. It is supposed to start trading with a proper capital of at least $1,000 of opinion.
    6:- focus on loss deals instead of focusing on the bulk of transactions and inevitably make the most successful deals.. The deal is the loss you have to forget, but you learn the lesson from it.
    7:- an important factor is a lack of experience or learning. It is accompanied by a splash of luck. When trading for the first time and making a profit and looking at the market it's easy.. But the shock will be in the next deals.
    8:- do not consider basic analysis during trading.. Most traders find the focus on technical analysis and neglect the basic aspect. It is a very big mistake.. The basic analysis and its fundamentals must be studied at least.
    9:- the dispersion of the views of analysts at sites, providers of recommendations and others. Try to make you two or three and just follow them and be sure of them.
    10:- knowing everything or nothing. This is a principle of sinner in which some traders are trying to learn everything about technical analysis before starting trading. And they probably never start. Instead of learning everything, you better learn the basics and delve into only one section of technical analysis such as classical... or supply and demand. etc

  2. #2
    we must realize that market curency is at high risk. working in the world of forex trading is not an easy thing. failure can occur, the risk of loss is always in sight. therefore do not forget to learn from the mistakes that exist. if you experience a loss, then record it in a journal and then learn why it can be lost. try to fix it and minimize the occurrence of the same mistakes in the future.

  3. #3
    Suppose that you offer the EUR/USD at 1.4022. In the event that the EUR/USD falls, that implies the euro is getting weaker and the U.S. dollar is getting more grounded. You may have likewise seen the cited cost has four spots to one side of the decimal. Currencies are cited in pips. A pip is a unit you include benefit or misfortune. Most currency pairs, aside from Japanese yen pairs, are cited to four decimal spots. This fourth spot after the decimal point is ordinarily what traders watch to tally "pips".

  4. #4
    For sure, it is impossible to avoid losses at all, but it is possible to reduce their impact. In other words, losses should be small enough so you can continue trading in future. That is why each trader has to develop his own system allowing him to manage risk properly to be able to keep control over losses.
    Each trading system, even if it is profitable itself, could generate signals leading to losing trades. At the same time, the final trading result is profit due to the risk-reward ratio - each time you are wrong you should lose less than you earn when you are right. In this case, your total profit would exceed your losses and you will be able to be consistently profitable.

  5. #5
    One of the best ways to avoid loss is to use good risk management techniques to reduce the chances of losses. Also after we finish our trades, we should analyse our mistakes /losses to avoid them again.

  6. #6
    Registered user
    Join Date
    Jun 2021
    Loss is an integral part of trading and there are no traders to date who have not suffered a loss in trading. Even the traders with two to three decades of experience have a success rate of 60 to 65 percent. Here are a few major reasons why forex traders lose.
    Overtrading that is either trading too big or too often resulting in loss

    Trading without a plan is a very common blunder committed by traders that incur loss

    Not maintaining the right trading discipline

    Insufficient capitalization is another reason why forex traders tend to lose

    The market tends to change every now and then, hence not adapting well to the changing market conditions results in loss

    Setting unrealistic expectations

    Very poor money and risk management

    Keeping each of the points that incur a loss, learning from them, and handling them effectively would make sure you start making a profit in forex trading.

  7. #7
    Join Date
    Jul 2021
    I believe, the biggest reason of losing in the forex market is directly jumping into live trading without practicing on a demo account.

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