Why people have big loses in trade?
- Thread starter KASHIF 007
- Start date
- Watchers 42
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hey kashif...... from what i've noticed over the years, the number one reason is most trade too large a lot size..... they want too much too fast.....
very few are interested in hearing it much less in trying it, but if they would trade using the smallest lot size available and try to make just a coke a day, it would greatly increase there chances of success..... around here a coke goes for about 1$..... so try to make just 1$ a day..... once they could easily make 5 cokes a week, then try to make a hamburger meal a day..... around here that's about 5$...... so try to make just 5$ a day..... then move up to 10$..... limit your trades to only a few a day.....
there is nothing wrong with trying to double your account in 6 months, but nothing right in trying to do it in 1.....h
Because its extremely hard to beat the market. Basically it's almost excellent machine which constantly changes and there is no strategy that will always work for you.
Yes and need to cool be a cool trade maximum time (85%) lose in trade!
Traders Losing Money Because:
- Taking too much risk without plan
- Focusing too much time and effort on a technical that doesn’t work.
- Getting confused by too many ideas.
- Making things way too difficult.
- No patience
nobody know where is the market will move...so dont place all of your capital in forex. Just make it simple...
I think, there are a lot of reasons for it. Here you are my own list:
- lack of knowledge (learning is your key to success, no matter how experienced you are)
- untrustworthy broker (search for info about broker you want to work with, first of all)
- absence of strategy (there is no ideal strategy, but you can create the most appropriate for you)
- great influence of emotions (what you need is to control your fear and anger and stay cool)
- too risky (do not trade everything you have; it also makes you too emotional)
- lack of knowledge (learning is your key to success, no matter how experienced you are)
- untrustworthy broker (search for info about broker you want to work with, first of all)
- absence of strategy (there is no ideal strategy, but you can create the most appropriate for you)
- great influence of emotions (what you need is to control your fear and anger and stay cool)
- too risky (do not trade everything you have; it also makes you too emotional)
The list is very long; but the main reason is: lack of trading knowledge! In Forex, it’s quite impossible to make quick money but new traders don’t try to understand this terminology.
The first is lack of knowledge or experience.
The second is lack of discipline, as the trader can fail to execute his own strategy, even if it is profitable.
The second is lack of discipline, as the trader can fail to execute his own strategy, even if it is profitable.
People have big loses in trading because they do not want to learn. They just want to earn. The simplest way to loose is to try something without prepations.
For sure, learning is the most important part of trading. Of course, the final goal is to earn money, but trading is mostly about the way. Only those who use professional approach to their trading self-education can successfull on the markets. Trading consists of 80% analysis and learning, and only 20% of executing trades.
I agree with you; risk management is an important issue here! without following the rules of risk management traders will face huge lose for sure.
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