Why people have big loses in trade?

Ary Barroso

Active Trader
Jul 9, 2017
908
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I have known traders with much bigger risk preferences but just never felt comfortable for me.
If you are good at 1% stick with it. Too many traders feel pressured to increase risk in pursuit of profit. This ultimately is a negative on your trading mindset.
2% risk for me is applied to trade set-up with a 1:2 Risk:Reward ratio.

Agree with you; yes, we need to follow our own path instead of copying others trading system.
 
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Reactions: Mauk

Oswald

Trader
Apr 12, 2019
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Copying others trading system could be devastating for one trader. You need to understand what and why are you taking that specific position in trading, otherwise, you would be like a blindfolded man on Forex market, testing your luck
 

Ary Barroso

Active Trader
Jul 9, 2017
908
71
39
35
People have big losses, true. It is also true that there are people who have big profits in forex trading, which therefore means that it is very possible to win. Many people make huge losses since they come to forex trading with the wrong mentality, they don't take their time to learn and they lack the discipline and patience that it takes to win

You are right and a number of traders start their trading without enough preparations. They have only one target and it’s – huge money making within short period of time! As a result, a huge loses.
 

hakuna matata

Newbie
Aug 3, 2019
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Well too name a few of these reasons , it may be due to lack of sound knowledge ,impatience , emotional trading , poor risk management practices , over trading etc.
 

Baazex

Trader
Oct 28, 2019
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Mostly the main reason is poor or even strategy ,no risk management , lack of experience and knowledge , being impatient, poor market knowledge and research, non realistic moves and expectations these all factors cause failure
 

fxdan

Trader
Dec 2, 2019
2
0
8
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Traders have big losses in trading because they don't have trading rules or its hard for them to follow their trading rules. Also they are hoping that the price of the asset they re trading would come back to favor them.
 

Mike Shor

Trader
Nov 19, 2019
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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
I agree with this. The biggest single cause of large losses!