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What do you think the reason why traders encounter loss in forex ?


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84 replies to this topic

#1
Levie

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reason why we encounter loss. share thoughts


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#2
radex78

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Actually forex market move dynamic and unpredicatble, here as trader only trying use technical anlaysis and fundamental analysis approach to trying indentity the trend ahead, because as forex trader they wiill work with the trend so they must learn how to analyze trend market with high accurate.

But so many reason the cause of loss, might some trader said if lack of knowledge and experience is most reason trader loss, and also reason that come from our own selves mistake like as greedy and over trading, over confident etc, so if we want to develop our skill we also need to recognized our mistake
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#3
myregister

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Yes, not our prediction will be 100% true. But with use indicator to analyze the market possibility to move we can get better picture of how the market will react, at least we don't gamble of how to make money but we have basis to do so. Fundamental analysis for me is the most accurate analysis type and i depend most to it.


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#4
radex78

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Yes, not our prediction will be 100% true. But with use indicator to analyze the market possibility to move we can get better picture of how the market will react, at least we don't gamble of how to make money but we have basis to do so. Fundamental analysis for me is the most accurate analysis type and i depend most to it.

And beause these reason, as trader they need managed money with risk management and also money management, not always in every day trading analysis as trader able analyze accurate trend market, and here also requred how to making plan in trading and finding strategy that can work on many kinds market condition


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#5
myregister

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And beause these reason, as trader they need managed money with risk management and also money management, not always in every day trading analysis as trader able analyze accurate trend market, and here also requred how to making plan in trading and finding strategy that can work on many kinds market condition

It is true, but guess what this is not something which everyone can do, sometimes they forget about it, sometimes they just ignore it. Actually there are a lot f aspect which we need to see not just their caapability as trader but also the condition of the market, since this is the main reason of why experienced traders still lose.


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#6
radex78

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It is true, but guess what this is not something which everyone can do, sometimes they forget about it, sometimes they just ignore it. Actually there are a lot f aspect which we need to see not just their caapability as trader but also the condition of the market, since this is the main reason of why experienced traders still lose.

Understanding with the market behaviour, his is also required good learning because trend market always move in vary movement and as trader need update their analysis, success trader will have good understanding woth the market and they can discipline with their rules  trading


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#7
Levie

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I think other reason why some traders encounter loss due to lack of knowledge on how the market move, we also need to check the trend at least we have an idea if it is right time to execute trades.


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#8
sidejob

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Not a bad comment since that is totally right that traders encounter loss simply because of a lot of factors which should accounted but in newcomers you will find that mostly it is all about emotions not about the market movement which actually sometimes is harder to predict and even not make much sense.


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#9
myregister

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I think we talk about this issue many times before, the reason why someone lose is coming from so many factors one of them is emotions or if you want i will extend it to lack of experience, market's condition, or choose the wrong broker for trading and so on, as for newbie, it is understandable for me why they lose their trading and that is not just about emotions but also their skills to manage the risk


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#10
radex78

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Yes alot of factor as reason the cause of loss, and if trader already understand the cause of failiure hence shouold they can learn well to overcome tehse mistake to making betterment trading skill, if mistake in trading because greedy hence they must trade with safe trading low risk, if m,istake might beause emotion hence as tdarer should trade with good control emotion


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#11
myregister

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It is clear as crystal isn't it? The reason why traders encounter losses because either that trader is incapabl to handle the situation and have bad insight to the future of the market or they simply lose because the market is unpredictable during that time. Know the reason is good but it is better to know how to solve the cause of why you/me/others lose their trading.


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#12
Latham Lapard

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It’s always to do with 2 things. Firstly, if we’re not having enough knowledge or experience then we’re likely to struggle and even lose. Secondly, we have selected wrong broker like I did when I was new, as I went for Etoro which made me lose heavily, so if we correct these 2 things then we won’t struggle too much.


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#13
Bonnie Berry

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In my view mostly this is to do with expecting too much with very little substance to work with, so we should focus on getting knowledge and experience only then we will be able to avoid losing and increase our chance of success. I am currently working with OctaFX broker where I have great advantage which is to do with their massive rebate program that helps me gain 15 dollars profits per lot size trade and greatest add on is been given for all traders which includes winning and losing, so that makes my work easier and I am always able to reduce losses, so that’s why I am able to perform well even in toughest of situation and keeps me in great zone.


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#14
myregister

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It’s always to do with 2 things. Firstly, if we’re not having enough knowledge or experience then we’re likely to struggle and even lose. Secondly, we have selected wrong broker like I did when I was new, as I went for Etoro which made me lose heavily, so if we correct these 2 things then we won’t struggle too much.

You got the point there, first it is normal to see people suffer because of that i think loss even as the part of learning, some people said experience is the best teacher and if you suffer loss then it will be experience for you which means the best teacher to teach you what is loss, how it feels and how to avoid it. As for broker, this is a bit like debate, because some people feel good with eToro even i don't trade there anymore but this is more like preference.


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#15
novarisa

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You got the point there, first it is normal to see people suffer because of that i think loss even as the part of learning, some people said experience is the best teacher and if you suffer loss then it will be experience for you which means the best teacher to teach you what is loss, how it feels and how to avoid it. As for broker, this is a bit like debate, because some people feel good with eToro even i don't trade there anymore but this is more like preference.

 

It's your experience that you can use to learn more. Learning from experiences is lot more effective because you had it before. And also, don't forget to always evaluating your trading journal.


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#16
skyrock

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For my own personal opinion I think that traders do encounter loss in the forex market because they refuse to invest their time and be learning how to trade forex is not bad but some traders always make the business so complicated to them
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#17
myregister

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Understanding with the market behaviour, his is also required good learning because trend market always move in vary movement and as trader need update their analysis, success trader will have good understanding woth the market and they can discipline with their rules  trading

Yes i agree with you but i see many traders lack of this issue and sometimes i misunderstanding the market for the sake of fullfill my desire to make profit. Understanding the market is long journey so you don't have to worry about that so much just focusing on learn after trading because it will give huge impact.


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#18
radex78

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So many reason why trader get loss and fail, greedy is one reason that causing loss in trading, sometrime after any trader already achieved target hence they still want more and the market sometime already move on saturation and then after open new order only will get loss again


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#19
kalex76

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Max people think that only for earning money we come to this Forex field and that type of mentality only causes the traders to face loss because people are not prepared to earn the positive attitude but they are interested to earn lots of money in a short span of time .


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#20
myregister

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Usually what we find that trader usually encounter loss because they still lack of experience and the worst that their emotions usually unstable makes the loss worse than ever. To solve that there is only one way of course by keep practicing and learning from the mistakes they made.


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