Why Do Forex Traders Lose Money (Causes Of Loss) ??????????

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Thread: Why Do Forex Traders Lose Money (Causes Of Loss) ??????????

  1. #1
    wasi90lk
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    Thumbs up Why Do Forex Traders Lose Money (Causes Of Loss) ??????????

    Why Do Forex Traders Lose Money (Causes Of Loss) ??????????
    Itís commonly known that most forex traders fail. In fact, itís estimated that 96 percent of forex traders lose money and end up quitting. To help you to be in that elusive 4 percent of winning traders, I have compiled a list of the most common reasons why forex traders lose money.

    1. Low start up capital
    Most forex traders start out looking for a way to get out of debt, or to make easy money. It is common for forex marketing to encourage you to trade large lot sizes and trade highly leveraged to generate large returns on a small amount of initial capital. You must have some money to make some money. Itís possible for you to generate outstanding returns on limited capital in the short term. However, with only a small amount of capital and outsized risk, you will find yourself being emotional with each swing of the market and jumping in and out and the worst times possible.

    Solution:
    People that are beginners in forex trading should never trade with only a small amount of capital. This is a difficult problem to get around for someone that wants to start trading on a shoe string. $1000 is a reasonable amount to start off with, if you trade very small. Microdots or smaller. Otherwise you are just setting yourself up for potential disaster.

    2. Failure to manage risk
    Risk management is key to survival. You can be a very skilled trader and still be wiped out by poor risk management. Your number one job is not to make a profit, but rather to protect what you have. As your capital gets depleted, your ability to make a profit is lost.

    Solution:
    Use stops, and move them once you have a reasonable profit. Use lot sizes that are reasonable compared to your account capital. Most of all, if a trade no longer makes sense, get out of it.

  2. #2
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    People that are beginners in forex trading should never trade with only a small amount of capital This is a difficult problem to get around for someone that wants to start trading on a shoe string. $1000 is a reasonable amount to start off with if you trade very small Microdots or smaller Otherwise you are just setting yourself up for potential disaster

    2. Failure to manage risk
    Risk management is key to survival. You can be a very skilled trader and still be wiped out by poor risk management. Your number one job is not to make a profit, but rather to protect what you have. As your capital gets depleted, your ability to make a profit is lost.

    Solution:
    Use stops, and move them once you have a reasonable profit. Use lot sizes that are reasonable compared to your account capital. Most of all, if a trade no longer makes sense, get out of it

  3. #3
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    Definitely, which traders are unable to read market language, they are mainly losing their real money here! Although, profitable Forex traders also face loses in their trading but they know how to overcome from loss because of their knowledge! I use most education friendly broker TradingBanks so, I am doing well in my live account although my trading capital is not smart enough.

  4. #4
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    From broker to brokers their trading services and facilities vary. The best broker ever in this world currency exchange market is Forex4you. To lead a high profitable Forex trading they give each and every necessary support to their clients. To earn good money, they give 10% cash back, 50% deposit bonus cash back system to their clients besides of giving them the low zero spread, low trading cost and many others.

  5. #5
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    in ro ham eslah kon:
    We all know the proverb that no risk no gain. Forex market has also risk. A trader when trading in the market, he always try to reduce the risk. It is not easy to minimize the risk. Trader should study hard before trading in the market. A broker also can help to minimize the risk. To give the guideline I take TP Global FX as my broker. Their planning, execution and ease of access pleasing me all time.

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