smithlover84 Posted January 14, 2011 Share Posted January 14, 2011 The false ego mistakes come from a mixture of false pride and bravado and are the most dangerous mistakes to make. The trader, generally a beginner or intermediate — call him Trader A — gets an opinion in his head about market direction. His analysis may have even been sound, but his opinion keeps him from reading/seeing the signs that a change is occurring in the market he has targeted. He subconsciously see the changes, but false pride is the devil, and blocks the information from making it into his conscious decision making process. The change he needs to see may even be pointed out to him by a fellow trader –Trader B– but Trader A’s false ego blocks this because he knows “I’m smarter than Trader B…In fact I think it’s a good idea to fade Trader B”. Trader A is also likely to be someone who is accustomed to being listened to. He may have been upper management in a company, or even owned the company. “People better listen to me” is how he sees it. He is likely more accustomed to talking rather than listening. Despite trader A’s previous success’ Mother Market will bring him down quickly. Any early success he has in the market will only make for bigger losses down the road as he gets caught in the spiral of trying to make up for lost money and still make money. He doesn’t just want to get his money back; he wants that and then some. His time is valuable. He is going to make the market pay. Well we all know how that works out, which is to say we won’t be seeing Trader A around for long. Then there is Trader C, who is a nervous trader. Trader C is nervous because he had a bad day trading early on, and could not stop thinking that if he lost that same amount of money every day, he would be penniless in 54 trading days. Trader C worked hard his whole life, and despite having never got the big promotion or raise, Trader C managed to save some money. Trader C is not used to people listening to him. But he is good at seeing things develop around him which makes him sensitive to change. This is a good thing for Trader C, who is more an analyst than a trader. But Trader C can never seem to catch the big one because every time he sees a trade up decent money, he remembers that loser in the beginning, and he grabs the money rather than let the profit run. 6 Quote Link to comment Share on other sites More sharing options...
boniez Posted January 22, 2011 Share Posted January 22, 2011 This parable is very difficult to understand, because it was too complicated, in general there are many factors that influence and make us lose when we trade Quote Link to comment Share on other sites More sharing options...
t2t Posted January 23, 2011 Share Posted January 23, 2011 This is the same thing you get when you purchase any forex ebook. You get to see a lot of jargons, that it will take you days to decipher. And when eventually you have done it you find out that it doesn't change anything. Quote Link to comment Share on other sites More sharing options...
yogeshwartyagi Posted January 29, 2011 Share Posted January 29, 2011 Well in forex though every one predict his own way but without following predictions even just relying on trendz one can make good profit but should be careful with stop loss. Quote Link to comment Share on other sites More sharing options...
standart Posted February 19, 2011 Share Posted February 19, 2011 yes, there is no point or goal in parable above. but its maybe about trader psychology. every trader is not same and maybe have different strategy in trading but have a same thing. the goal is profit. Quote Link to comment Share on other sites More sharing options...
sirwilly Posted February 20, 2011 Share Posted February 20, 2011 There are several reasons why a trader may lose out on trading. The most important reason is probably a lack of knowledge. The ignorant trader is sure to repeat his mistakes time and again. Quote Link to comment Share on other sites More sharing options...
matiskater Posted February 24, 2011 Share Posted February 24, 2011 There are several reasons why a trader may lose out on trading. The most important reason is probably a lack of knowledge. The ignorant trader is sure to repeat his mistakes time and again. ok i just started on forex using etoro... im still using the practice account but im using it as much as a real money account, what i started doing was reading the info that im supposed to know (yes i still have a long way till i become an expert) and started trading a little bit everywhere, but i was loosing money.... Now today i found the new insite feature etoro has where you can checkout what the biggest traders are doing, buying selling, etc..so i picked the top trader at the moment and the guy is buying eur/usd so he recently started and bought eur/usd so i did at the same price in the low risk, in just 15 minutes i closed the trade and got 8 dollars in profits in total, i bought eur/usd a couple more times and also got profits similar (one of them was of only 3) at the moment im in the middle of a trade, and i hope it will go good soon. that is the strategy im doing and i already am getting back what i lost before, ofcourse im not gonna do this once i get my real money account, but i feel like following the crowd is the best to do and youll loose the least...its good to take risks too but thats what im doing so far and ill be doing for a while. btw if anyone got any tips for me id love to hear them;) regards, matiskater Quote Link to comment Share on other sites More sharing options...
andry777 Posted March 1, 2011 Share Posted March 1, 2011 In my view, usually traders lost in forex market because they have lack knowledges and lack experiences in forex but they entered directly to real account. Many trades wanted to get high amount of bucks instantly from forex, it's impossible but many members tried to make it happen. Quote Link to comment Share on other sites More sharing options...
wasi90lkv1 Posted April 3, 2011 Share Posted April 3, 2011 i think a lot of factors may contribute to a loss. if you become too greedy, you may lose a lot of money. if you become over cautious, you may lose money. you can lose money by following a very risky strategy. Quote Link to comment Share on other sites More sharing options...
Nikhil Posted April 4, 2011 Share Posted April 4, 2011 @wasi90lkv1 yes that is really a great factor you mention for lossing money in forex and i think if we overcome this than able to keep our profit which we already get from forex . and out of this another important things moneymanagement and if we do that than there will be some less risk to washout our account. Quote Link to comment Share on other sites More sharing options...
andry777 Posted April 19, 2011 Share Posted April 19, 2011 @wasi Yes, there are a lot of factors but we can classify it in short, that was our attitude and our psychology factor. Our attitude will be affected with our knowledges and experiences, our psychology will be affected with condition of market and our money management control. Usually these are the main factors which affected forex trading. Quote Link to comment Share on other sites More sharing options...
boniez Posted April 21, 2011 Share Posted April 21, 2011 in addition to psychology and money management, frequency of price prediction errors also hamper me and causes loss when trading. until now has dozens of times I experienced a margin call and still not give up hope can yield better later Quote Link to comment Share on other sites More sharing options...
winning11 Posted June 30, 2011 Share Posted June 30, 2011 You can attribute your fiasco in the forex market to many emotions and characters, such as fury, greed and so on. But in fact, those are in everyone. You don't have to get rid of those emotions or characters in order to become a good trader. You just accumulate your experience and gradually you will understand how to control them, and not let them hamper your trading. Quote Link to comment Share on other sites More sharing options...
mohammadbadr Posted July 31, 2011 Share Posted July 31, 2011 It is better to trade by yourself rather than following trading signals given by other traders, they are not better than you, you have a similar brain and you can success and make a good results if you concentrate, one of the disadvantages of ready signals is that you have to follow them hour by hour, and you have to enter them all, not just select one or two, as the signal provider does not ensure profiting in all trades, he says that the end result will be in positive, so this is time and effort consuming. Quote Link to comment Share on other sites More sharing options...
adnan007 Posted September 8, 2011 Share Posted September 8, 2011 Its the lack on knowledge and inexperience which makes us commit mistakes while trading and therefore we have to suffer huge losses in Forex. Hence, most of the new traders use a Demo account in the beginning of their trading career to get along with the trading conditions and develop some experience... Quote Link to comment Share on other sites More sharing options...
senger Posted December 6, 2011 Share Posted December 6, 2011 The real reason was true to my loss in Forex due to lack of experience and learning And you enter into transactions without credit my love of any technical analysis Quote Link to comment Share on other sites More sharing options...
riddick09 Posted December 14, 2011 Share Posted December 14, 2011 I think greediness for me. Because if you have gained some profit already but then aiming for more trades as hoping more of profit then greed shows up and tendency that the profit will become loss. I think i should learn how to control or change it not to have consistently losses or totally losses. Quote Link to comment Share on other sites More sharing options...
omostar Posted December 19, 2011 Share Posted December 19, 2011 Yea for me too, it is that greedy nature of human being that makes us loss in the Forex market especially I can say in my own case. I had all the necessary knowledge and I knew the right things to do but some how i still made that mistake. definitely no one can win in that market 100% but keeping the losses to a minimum is the most important thing. Quote Link to comment Share on other sites More sharing options...
zdaina Posted January 8, 2012 Share Posted January 8, 2012 hello, there are two things make me lose in trading forex 1- the bad time of trading 2- the false recommondations. i don't have a good strategy to follow and i don't have a lot of money to cover my loss , Quote Link to comment Share on other sites More sharing options...
riddick09 Posted January 8, 2012 Share Posted January 8, 2012 I also think another one of sudden change of strategy when something wrong or sudden changes in the pair. Im not sure if we need to stick to the strategy but one thing i should learn from being doubtful in my trades if it is good to close trades or still go on. Quote Link to comment Share on other sites More sharing options...
pinoycity Posted January 8, 2012 Share Posted January 8, 2012 The main reason why I lose in trading is the lack of proper analysis. I will just look at some analysis then check on the charts. When I see some signals, sometimes, I get in even without testing if the signal is really good or not. Quote Link to comment Share on other sites More sharing options...
monyitomon Posted January 10, 2012 Share Posted January 10, 2012 Yes, you must done a proper and thourough Analysis before you start trading. You have to be aware of everything that can influence the currency rates. If this can be done properly then the more chances for you to make a profits in the end. Quote Link to comment Share on other sites More sharing options...
pinoycity Posted January 13, 2012 Share Posted January 13, 2012 Most of the time, being impatient is the cause why traders lose a trade in forex. Being impatient is sometimes caused by not having lots of time. Sometimes, you only have an hour to do your trading and your decisions will get affected. Maybe, you should not trade if you have not enough time in your hands. Quote Link to comment Share on other sites More sharing options...
riddick09 Posted January 16, 2012 Share Posted January 16, 2012 Most of the times that will happen if we dont have lots of patience or dont have availability of time. However it will be only solved if lack of time in putting sl and tp. Only then patience will be really difficult to estimate when is the time to really close the trade. Quote Link to comment Share on other sites More sharing options...
monyitomon Posted January 16, 2012 Share Posted January 16, 2012 We must control the greed some trader only earn a small profit a month because of the volatility of the market! You may earn tomorrow but on the other day it can wipe out all your money earned if you weren't able to control your greed. One earns and one losses, that is just how forex is, you can earn a BIG amount and thefore you can lose BIGGER amount. Quote Link to comment Share on other sites More sharing options...
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