What is the main reason of failure in trading.

[rafiqshahid]

Though there are many reasons for masking loss in Forex trade but the main reason is psychological fact.we beginner traders usually make that mistake and for that want to rich very quickly by opening many trade and opening trade with big lots.

 

[Markllee30]

I think lack of knowledge and experience and poor strategy is the main reason for the loss in forex trading.

 

[Decub]

To me, the main reason for losses in Forex could be attributed to inadequate knowledge and skills. Though losses are quite inevitable, there could be times when the market is somewhat favourable and if you do not know much about Forex, you still can't make anything out of it.

 

[jackcm]

To me, the main reason for losses in Forex could be attributed to inadequate knowledge and skills. Though losses are quite inevitable, there could be times when the market is somewhat favourable and if you do not know much about Forex, you still can't make anything out of it.

Yeah! The reasons are not only poor knowledge and bad experience but also emotional trading, especially when novice traders lose, they're often angry with it and try to make another transactions to cover losses, and this makes them lose more and more money until they realize that they were controlled by emotion.

 

[riddick09]

Of course, it will be also because of the Forex market that makes it really difficult to predict and since, it is still keep on changing so, our analysis will be affected and will be change from time to time. But then, others also because, traders not able to accept their losses.

 

[kaiceaziz]

The main failure is that you need to be paitient in trading forex and you have to wait a long time before deciding wether to order a price or not. For sometimes the price goes rise and fall several times. You have to predict the right time to choose.

 

[naninov]

mentality of gambling is the main factor affecting traders lost his trade, trading blindly on markets by feeling without proper analysis and trading in high risk margin lot will finally blown up the traders balance... keep away from gambling mentality and do care if your own money

 

[Cutiekc]

There are no main reason why some fails in forex trading, the reasons that constitutes to lose are nurmerous bit to generalize the whole thing, I will say it is being ignorant of forex trading because its only when one have no knowledge of something that he makes mistake and most at times are because of being on a hast to make money.

 

[Daisy]

There are many reasons for failure. Of course, it all starts with not knowing about forex and trading blindly just for the heck of trading. Of course, there are many greedy people who just want to scalp the scalp out of forex so they will not learn and just scalp so they lose as scalping is very risky for newbie but ok for old traders. Also, a lack of fundamental understanding will lead you to fail as well. A lack of technical analysis will lead you to lose as well. A lack of rigorous practice will lead you to lose as well.

 

[Decub]

A lot of reasons and actions result to failure. While some can be avoidable, others are simply things we can do little or nothing about. Sometimes, it is the traders themselves that cause their failure and it revolves around inadequate knowledge and understanding of the Forex environment and how it works. Lack of skill and money management techniques as well as lack of emotion control.

 

[Cutiekc]

A lot of reasons and actions result to failure. While some can be avoidable, others are simply things we can do little or nothing about. Sometimes, it is the traders themselves that cause their failure and it revolves around inadequate knowledge and understanding of the Forex environment and how it works. Lack of skill and money management techniques as well as lack of emotion control.

You are right, there are numerous reason why we loss in forex trading but the in generalizing and talking about the most commone one, that should be lack of knowledge or ignorance. Because most of the traders that exprience lose are the beginners who must have seen forex in the wrong perspective. In addition. Lack of emotion discipline makes some exprience traders to loss as well.

 

[Decub]

Of course, a complete Forex novice which I choose to call observer is bound to fail unless he copytrades or most probably had some degree of sheer Providence which rarely happens. Sad though, newbies are always the worst hit in this but it is just their trial moment which pass with time.

 

[gkintl]

The most important reason for failure, as per my opinion, is the high leverage usage and lack of patience. High leverage puts the trader under stress which ultimately results in clouded thought. This results in wrong decisions which ultimately leads to substantial loss. Similarly, a lot of patience is required to succeed in forex trading. Lack of patience would make a trader close orders early. This ultimately reflects in average performance. Even profit making trades may end up in loss due to such an attitude.

 

[Daisy]

There are many reasons why a trader can fail. Its easy to fail. Its very easy to fail in forex. Just a simple mistake can lead to failing. Even if you are good the bad market news or weather can cause you to lose or if the broker trade against you or do weird trick to cause you to lose. So, its very easy to lose and trading is very high risks. One of those is not knowing fundamentals, a sure way to lose or technical analysis or keeping up with news.

 

[willy]

there are many reasons of this let me tell you something when i start trading with forex for three years ago i loosed my accounts 5 times with 1000$ for eah time because i start instant with real account without any learning or training therefore we must learn and get training before trade with real account

 

[Decub]

@willy, I will say you personally engineered your own failure because as at then, Forex has coke of age and there are so many resources for learning. Demo also, has been in existence so there are ways you would have averted even the first MC not to talk of the series of losses.

 

[UMOFX AIR]

Main reason for my failure is low practice of trading . I think one month demo trading is enough . I was at wrong thinking , Just making trading is nothing until we are not good in risk management. The other reason is low amount in my trading account where I can not take big risks.

 

[budado]

Lack of trading knowledge is the main reason why we end up losing big amount of money in forex. But once we continue trading and learning some tip or two we can some how end up making some good profit as well. I do recommend that we invest more of our time in demo account then in real account.

 

[Pettyeve]

I agree with you. The principal reason traders will fail is lack of trading knowledge. If the trader is having good forex knowledge and is trying to trade with risk management, he or she shouldn't fail. Loses can come sometimes but not consistently without making profit.

 

[Decub]

Well, a lot of reasons abound when it comes to failing in Forex. Also, if a trader allows frustration as a result of consistent losses set it, he is bound to lose the more. It makes him feel there's nothing else Forex has to offer. That is why traders need to build a lot of confidence in themselves.