Why people have big loses in trade?

[Ary Barroso]

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.

 

[Oswald]

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]

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.

 

[Glastonburyk]

Why people have big loses in trade?

Lack of planning and discipline mainly

 

[Callum Richards]

Poor risk management

 

[Petez_FX]

People who over trade (it can be done easily).

 

[walpants]

Why people have big loses in trade?

because they get greedy and forget their money management, its also much easier to loose in forex than it is to win

 

[Glastonburyk]

People who over trade (it can be done easily).

Yea man especially when winning trades early on in the day, some people just can’t close out

 

[hakuna matata]

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.

 

[johnbrown_01]

Greed, impatience and lack of knowledge, and the worst of all, no risk management.

 

[Baazex]

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

 

[Ary Barroso]

Greed, impatience and lack of knowledge, and the worst of all, no risk management.

I think, lack of knowledge leads this journey! On the other hand, money management is the key to avoid any unexpected result!

 

[fxdan]

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]

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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!

 

[TFA]

dont just go all in without understanding what you are doing