Why people have big loses in trade?

Niralya

Newbie
Dec 12, 2018
1
1
1
44
Traders need to be very careful while trading, mainly they should know how to manage their emotions while trading Forex. Trading is art rather than a business, so be calm and trade, only then you can avoid the huge loss. Traders with good knowledge of knowing how to apply the strategy with calculative risk along with patience will lead to success. This can also be called as risk and emotion management, which is very important for a Forex trader to follow.
 
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Reactions: Ulacan

Ary Barroso

Active Trader
Jul 9, 2017
908
71
39
35
Traders need to be very careful while trading, mainly they should know how to manage their emotions while trading Forex. Trading is art rather than a business, so be calm and trade, only then you can avoid the huge loss. Traders with good knowledge of knowing how to apply the strategy with calculative risk along with patience will lead to success. This can also be called as risk and emotion management, which is very important for a Forex trader to follow.

No doubt, emotion & greed is one of the most common problem here; but the key point is: lack of trading knowledge! When traders are trading without enough preparations then, these kind of mistakes are very common to mixed up.
 

Dictorsto

Trader
Dec 23, 2018
56
4
24
37
I have expereince to counter trend when market go down and I take decision to buy position then I lost 30% of my position , I buy more and lost more than 50% of my position.Then I put stoploss , loss money and confidential.
 

Ann

Active Trader
Mar 4, 2018
68
9
29
31
Someone might think that I am writing nonsense. It seems to me that the market is a tool for redistributing money from the poor and the stupid to the rich and the smart. In any market there is a collusion of major players against small ones. Major players can move the market against most small ones.
 

37riched

Active Trader
Dec 26, 2018
117
24
34
37
//----

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
Very well explained. Many traders just come to the market with the fixed idea that trading Forex will make them millionaires overnight. They forget that there are rules to the trade and that discipline is mandatory for anyone to succeed. In any trade, there has to be winners and losers; though the forex market tends to have more losers since people rush into trading without prioritization and planning.
 

Ervin Samue

Trader
Dec 14, 2018
40
10
24
San Francisco
Someone might think that I am writing nonsense. It seems to me that the market is a tool for redistributing money from the poor and the stupid to the rich and the smart. In any market there is a collusion of major players against small ones. Major players can move the market against most small ones.
smart stupid, this type stupids are good.
 

Ary Barroso

Active Trader
Jul 9, 2017
908
71
39
35
Very well explained. Many traders just come to the market with the fixed idea that trading Forex will make them millionaires overnight. They forget that there are rules to the trade and that discipline is mandatory for anyone to succeed. In any trade, there has to be winners and losers; though the forex market tends to have more losers since people rush into trading without prioritization and planning.

Basically, which traders come with a shortcut mindset; end of the day they lose everything. It’s long term process, shortcut doesn’t exist here.
 

37riched

Active Trader
Dec 26, 2018
117
24
34
37
Because they make silly mistakes and trade without "free" mind. Of course don't forget about risk and money managment. They just want in one day multiply their deposit x10 and buy a property and buggati but in real world it don't work.
Sure. People lose a lot in trade because of the wrong mindset. Many people come to trade without really taking their time to study the basics and what it takes to succeed and end up making some very big unforgivable mistakes. Most losses are because of greed and poor risk management.
 

Ary Barroso

Active Trader
Jul 9, 2017
908
71
39
35
Sure. People lose a lot in trade because of the wrong mindset. Many people come to trade without really taking their time to study the basics and what it takes to succeed and end up making some very big unforgivable mistakes. Most losses are because of greed and poor risk management.

Well said! You are absolutely correct! There have so many traders who are seeking success unless making a good trading skill; they basically focus on earning instead to learning.
 

Ary Barroso

Active Trader
Jul 9, 2017
908
71
39
35
1. Risk too much per trade
2. No Stop loss.
3. Chasing their loses.
4. Letting emotions control your decisions.
5. Greed

Trading without stop loss trading tool is the most dangerous decision; without SL means you are taking 100% risk in every single trade.
 
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Mia thomson

Newbie
Feb 28, 2019
1
0
2
28
According to me the most common reason is the lack of practice and on the other hand trading in bigger lots in order to earn large profits.
 

Ulacan

Trader
Feb 21, 2019
91
9
24
It is common knowledge that the forex market has more losers than winners, which can greatly discourage aspiring traders. What many people do is that they don't own the losses but rather blame brokers, who I admit are partly responsible.The main reason why traders fail is the lack of strategy, trading without stop loss and the wrong mindset
 

Ann

Active Trader
Mar 4, 2018
68
9
29
31
Now it has become a mystery to me: why traders take a profit of 1%, and lose 100% once. They get 1% and rejoice. The next day they get another 1%, Then another and another. And here they have a profit of 5% after a series of wins. And then they lose everything. I used to be like that too.
 

REB_FX

Trader
Feb 8, 2019
88
19
24
39
Perfect; I’m also considering 2% as my maximum range but usually I take 1%; it’s my preferable area.
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.