Top 10 Reasons Why Forex Trader Loss While Trading

steven evans By steven evans, 9th Apr 2014 | Follow this author | RSS Feed | Short URL http://nut.bz/3upuj-zq/
Posted in Wikinut>Money>Forex Trading

Still loss in forex then you will need to read article. This article about why a forex trader losing the money in their account

Why Forex Trader Loss

No one like to loss in forex trading but the condition of forex trader all around the world showing sad facts. Almost 90% of forex traders are losing their money in this business no matter how long they already spend their times to be a forex trader. Even a professional traders also still losing their money if they trade carelessly without making a proper analysis first about market movement.

Now, we are talking about top 10 reason why forex trader loss.. Here is the list:

1. Being Greedy

In forex people want to get profit as much as they can. It's normal but we must also trade based on proper analysis and we also must use money management. If we are being greedy while trading then soon or later we will loss or even we may get margin call.

2. Can't Control The Emotion

As a human, one of our weakness is emotion but if we decide to be a forex trader then we must calm and don't ever trade with emotion. Usually a forex trader can't control their emotion when they have floating minus. In that case then it will be better if they close the position immediately.

3. Trade Without Money management

It's the most common mistake for a beginners because they still don't learn about money management. In forex you must calculate the maximum risk per trade. If it's already above the limit then it will be better if you close the trade and stop for a while

4. Trading Without Stop Loss

Stop loss is like a safety belt. It will protect our forex account from margin call. It always recommended to put stop loss whenever you trade so if market creating a spike then you will not losing the money that you can't afford to loss

5. Over Confident

This trading problem usually happen in a forex trader who already spend more than 1 year in this business. Having a lot of trading experience and a lot of knowledge make them over confident especially when predicting market direction. Usually they always right while predicting market, but when they failed then it can wipe their account

6. Using Big Trading Volume Or Lot Size

We must being patient in forex and let our forex balance grow day by day. We don't need to being hurry in forex. Using big lot size may bring you a lot of profit, but if you are failed then you will losing a lot of money too.

7. Trade During The News

If you still don't know how to read the news impact then it will be better if you stay away when market want to release the news because it can be dangerous to your account. Just wait until market back to normal if you want to trade.

8. Having Wrong Mindset About Forex

Forex is not quick rich scheme and it will need losing time process before you can make money consistently. If you think you want to being rich from forex then you must be ready to learn about forex first. If you did, someday you can reach your dream in forex.

9. Lacking Trading Experience and Forex Knowledge

If you are newbie then the first thing you must do is to learn about forex first. It will be useless if you try to trade without preparation. Mostly you will only losing your money.

10. Being Impatient While Trading

Sometime market run fast and sometime very slow (flat trend). We can't do anything about it. Instead of adding more order just because you are impatient then it will be better if you put stop loss and take profit. You can do any other activities until you get the results from that trade.

That's Top 10 reasons why forex trader loss while trading. Now you already know about it so it's the right time to change the way you trade if you want to get different trading result.

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Comments

author avatar Phyl Campbell
11th Apr 2014 (#)

Congrats on being Author of the Day!

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