Common reason why traders lose money ?

[sanjay.patel]

I would like know understand about, common reasons why traders loose money ?
with proper reasoning and explanation would be appreciated ?

[steph.wis]

The main reason people loose money is because, is that market is liquid. There are always buyers and sellers, this gives an outcome of someone winning and someone loosing, both can't be winners.

I hope it is good enough for your understanding.

Thanks for the good question.

[Arshad]

Thanks sanjay.patel for a short and brief reply.

I would like to add that many of the traders are unaware with forex trading and its workings but wish to make great returns in short period of time. It is important to understand that greed and fear also plays an important role in Trading.

Till then Happy Trading

[ALex]

Poor planning is the key to failure. Poor many management follows. Taking high leverage could be course too sine it possess higher risk. Always plan your trades in advance. Know your desired entry point, take profit and stop loss rates you trade and wait for the right opportunity to arise.

Some investors believe that if a dealing plan is easy than it must be insufficient. They select complicated techniques which are so hard to function that they never recognize them. Select a program which is easy to function. It’s the key to making the right choices.

Dealing is an psychologically strong encounter. Viewing the industry convert against you is always traumatic. The issue is that many investors can’t management their feelings and allow them to impact their choices. They end up making foolish errors.

[Arshad]

To add more its about trader's Inconsistent Trade Strategy which makes them loose alot of money.

[Suresh]

Hello friends,

There are many reasons why a trader may loose money in the market. Most important thing to note here is that, not all of the market participants are Traders... they are novice or amateurs trying to learn and trade at the same time. This group constitutes the largest losers in the market. A professional trader on the other hand bases his trades on proper research and analysis. Additionally, the novice or amateurs traders trade on emotions and that is one of the main reasons they lose most of the money in a very short time. Most newcomers are lured by the myth of "quick money in forex" and they start with very basic knowledge or no knowledge at all. The irony is that these people don't learn from the mistake and repeat the same things again and again and in the end blame their failure on luck or broker.

[profit]

The most common reason is careless trading without proper money management. Traders seek for quick profits, thus can open large orders without ground analysis.

[buse]

when one is able to control himself ..., then he will benefit ....... surfing forex ..market situation will not be able to punish a trader ... trader itself, that immerses its self ... and I am sure every trader will find a rhythm surfing forex trading ..... its a problem when ????

[monowarbmhks9494]

I'd really like learn see with regards to, typical main reasons why merchants shed dollars ?
using suitable thought in addition to explanation could be comprehended ?

[msonic]

I'd really like learn see with regards to, typical main reasons why merchants shed dollars ?
using suitable thought in addition to explanation could be comprehended ?

I have experience when Swiss Central Bank, sold its CHF in big amount. It was without warning and every other currency suddenly sky rocketing.