• The Forex, Binary Options Forum - welcomes you to our Community!

    DigitalCashPalace Forum is dedicated to discussions about Forex, Binary Options, commodities, stocks related.

    Please take a look around, and feel free to .

Why Loss ?

by and large we think only due to lack of real trading experience we fall a great loss , but it is not appropriate completely , besides due to lack of trading skill , trading discipline , money management , risk management , trading with emotions and much more reasons are responsible for losing in Forex trading.
 
A business consists of both loss and profit. Without the combination of both two it is never be a business. We cann’t imagine a business without loss. As a business loss is also available in Forex market. Currencies of different countries are the main ingredient of this business. It is the best way of learning Forex is to take lesson from each and every mistakes which I always follow.
 
There is nobody who can avoid loss from this market place in spite of having most powerful analyzing trade knowledge, but taking some major steps we can avoid our loss sometimes. Mostly traders fall a great loss by taking high leverage due to non-sense planning and zero risk management policy, so before taking with high leverage we have to know how to manage risk.
 
There are many specific reasons behind losing in Fx trading, I want to emphasis on money management that you have mentioned first. Actually despite of good trading knowledge that’s not possible at all to lead a comfortable trading life if you don’t know how to manage money.
 
You are absolutely right, and you mentioned here all of common mistakes of Forex trading! By the way, actually in my 1st 3 months of live trading I faced lots of problem! Actually, then I didn’t know how to deal with emotions and greed! I seem, not only me there have more than thousands of trader who have similar experience!
 
Money management is sooooooooo important. Without that you will blow your account even with a good strategy.

Also if you blow your capital then you will be left with nothing to trade with. That means you are out of the game. So it is necessary to maintain risk so you can survive for the next opportunity that presents to you.
 
In a word, you have to ensure your good trading skill for being a successful Forex trader! Even only technical knowledge is not enough here! Need a combo skill on technical as well as fundamental and sentimental analysis! By the way, when I was a newbie then my greed was mainly responsible for my big damages!
 
Loss actually comes when we are not so perfect in the trading and do some silly mistakes with time but yes when we can learn good trading strategies and plans we can be a good trader.
 
Why? Not enough control, bot enough attention. I tell myself that losses could be avoided practically every time I face them. And it's really so!
 
loss occurs when we are making lots of mistakes at a time and actually its a part of the business as we are Human being we can't be 100%accurate and for that we can face the loss in longer run also.
 
The list is very long, but a number of Forex traders are losing their money because they don’t have enough trading knowledge! Yes, knowledge is the key point here! Without having enough knowledge, success is quite impossible.
 
Trading with putting SL is very important because the SL then we will be able to minimize the risks of forex properly , therefore we should always use SL when trading. To put stop loss when trading, I prefer to put SL 5% of the capital. So that the losses incurred are not getting bigger.
 
Loss occurs when the analysis does not comply with the conditions of the price movement which is going on, or the opposite of the trend of price moves so that the stop loss hit
 
I lost many times my balance due to lacking of stop loss especially when I was a newbie. Actually I think so many new traders don’t like to use SL and when fall a great trouble then understood the importance of stop loss strategy which is really supportive to minimize risk of loss.
 
by and large we think only due to lack of real trading experience we fall a great loss , but it is not appropriate completely , besides due to lack of trading skill , trading discipline , money management , risk management , trading with emotions and much more reasons are responsible for losing in Forex trading.

Reasons of loss can be different for different people. One can point different reasons but only the trader who is losing can sum up what are the reasons for his loss. Others can suggest but the trader is the one who has to work on it.
 
Loss occurs when price movements do not match the analysis that has been created and has no backup analysis if the price movement from the first analysis fails, but if it has a two-way analysis then forex trading transactions will continue to run dynamic do trader
 
While the analysis does not correspond to reality with the movement of prices in the future, it will be obtained for loss when price touches the stop loss or do a cut loss
 
Loss are just a part of the Forex Trading, just like the profit, we need to embrace the both and if you wanna become successful, you need to learn from your mistakes and you couldn't do that without loss.
 
Loss occur due to a variety of things, it could be because of lack of accuracy analysis of a trader so that prices are moving in line with no open positions, or it could be because of the greed of traders themselves
 
Top