Why most Lose Trading?

[Markmuffin]

I just want to start a thread on Key factors which lets mostly in losing Trade.
Why a newbie starts losing trade, what are the measures which they must follow it up to be stable if not successful.

I hope much of you will like to share your experiences across for the newbie’s.

[Pinalli]

Originally Posted by Markmuffin

I just want to start a thread on Key factors which lets mostly in losing Trade.
Why a newbie starts losing trade, what are the measures which they must follow it up to be stable if not successful.

I hope much of you will like to share your experiences across for the newbie’s.

Interesting thread.

Well, i think the most important factors that lead to loose trade are:

1. Over confidence
2. Lack of control on emotions - Over excitement
3. Revenge
4. Untested strategies

[FXexpert]

People lose a proper mental state for trading which makes it much more difficult to earn profit & prevent loss.

[daniellefr]

not serious about trading, not willing to study at all, compare forex to gambling, no self control, no discipline... no money management

[samjoseph]

Most of the person have insufficient knowledge of trade system, they don't have idea of market fluctuation. Some of they are greedy to earn more profit by investing more capital and they loose it as they don't have control on their excitement.

[Pinalli]

Well, Lack of discipline to follow through the strategy the forex trader developed for himself. If there is anything that can quickly ruin any forex trader, it is lack of discipline. If forex traders lack the good culture and discipline of following the strategy they developed to make big pips such a trader will continue to run after shadow and in no long a period of time loose all his/her investment

[Jan Phrixos]

Case 1 - Option was not squared off (allowed to expire).

1) You buy a naked (unhedged) option. In this case what maximum you can loose is total option premium you paid + brokerage paid while buying it.

2) You sell (short sell) a naked option. In this case what maximum you can loose is difference between spot price and option strike + brokerage paid while selling it - total option premium you received.

Case 2 - Option was squared off (exited before expiry)

1) You buy a naked (unhedged) option or You sell (short sell) a naked option. In both cases what maximum you can loose is total option premium you paid while buying it - total option premium you received while selling it + brokerage paid while buying it + brokerage paid while selling it.