Perhaps the main reason that the majority of traders lose money is that most people have little self-control, can’t resist the temptation of excessive trading and excessive leverage, and no one is responsible for it.
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Another primary reason why most traders lose money is that they are trying to reverse this trend for some reason, although they know that they will statistically be higher or escalate by sticking to the pattern until the trend is over.
In this article, I will share with you my opinion on this issue – why entirely rational and successful people are losing money in the foreign exchange market.
3
Payment methods
Trading platforms
Regulated by
Support
Min.Deposit
Leverage max
Currency Pairs
Classification
Mobile App
Min.Deposit
$100
Spread min.
Variables pips
Leverage max
100
Currency Pairs
40
Trading platforms
Funding Methods
Regulated by
FCA
What you can trade
Forex
Indices
Actions
Cryptocurrencies
Raw Materials
Average spread
EUR/GBP
-
EUR/USD
-
EUR/JPY
0.3
EUR/CHF
0.2
GBP/USD
0.0
GBP/JPY
0.1
GBP/CHF
0.3
USD/JPY
0.0
USD/CHF
0.2
CHF/JPY
0.3
Additional Fee
Continuous rate
Variables
Conversión
Variables pips
Regulation
Yes
FCA
No
CYSEC
No
ASIC
No
CFTC
No
NFA
No
BAFIN
No
CMA
No
SCB
No
DFSA
No
CBFSAI
No
BVIFSC
No
FSCA
No
FSA
No
FFAJ
No
ADGM
No
FRSA
71% of retail investor accounts lose money when trading CFDs with this provider.
Min.Deposit
$100
Spread min.
- pips
Leverage max
400
Currency Pairs
50
Trading platforms
Funding Methods
Regulated by
CYSECASICCBFSAIBVIFSCFSCAFSAFFAJADGMFRSA
What you can trade
Forex
Indices
Actions
Cryptocurrencies
Raw Materials
Etfs
Average spread
EUR/GBP
1
EUR/USD
0.9
EUR/JPY
1
EUR/CHF
1
GBP/USD
1
GBP/JPY
1
GBP/CHF
1
USD/JPY
1
USD/CHF
1
CHF/JPY
1
Additional Fee
Continuous rate
-
Conversión
- pips
Regulation
No
FCA
Yes
CYSEC
Yes
ASIC
No
CFTC
No
NFA
No
BAFIN
No
CMA
No
SCB
No
DFSA
Yes
CBFSAI
Yes
BVIFSC
Yes
FSCA
Yes
FSA
Yes
FFAJ
Yes
ADGM
Yes
FRSA
71% of retail investor accounts lose money when trading CFDs with this provider.
Min.Deposit
$50
Spread min.
- pips
Leverage max
500
Currency Pairs
40
Trading platforms
Funding Methods
What you can trade
Forex
Indices
Actions
Raw Materials
Average spread
EUR/GBP
-
EUR/USD
-
EUR/JPY
-
EUR/CHF
-
GBP/USD
-
GBP/JPY
-
GBP/CHF
-
USD/JPY
-
USD/CHF
-
CHF/JPY
-
Additional Fee
Continuous rate
-
Conversión
- pips
Regulation
No
FCA
No
CYSEC
No
ASIC
No
CFTC
No
NFA
No
BAFIN
No
CMA
No
SCB
No
DFSA
No
CBFSAI
No
BVIFSC
No
FSCA
No
FSA
No
FFAJ
No
ADGM
No
FRSA
71% of retail investor accounts lose money when trading CFDs with this provider.
Low start-up capital
Most currency traders start looking for ways to get out of debt or make money.
Forex marketing often encourages you to trade large volumes and highly leveraged transactions, creating substantial returns for a small amount of initial capital. You must have some money to make some money.
In the short term, you have the potential to create outstanding returns with limited capital.
However, with only a small amount of capital and huge risks, you will find yourself excited at every swing and jump in and out of the market and the worst moments.
Solution: People who are new to Forex trading should not trade with only a small amount of funds. $ 1,000 is a reasonable start. Otherwise, you are just setting up your own potential disaster.
Failure to manage risk
Risk management is the key to survival. You can become a very skilled trader and still be eliminated due to poor risk management.
Your number one job is not to make money, but to protect your income. When your capital dries up, your ability to profit is lost.
Solution: Once you have a reasonable profit, use the right strategy to manage your risk of losing that income. Most importantly, if a transaction makes no sense, get rid of it.
Greedy
Some traders think they need to squeeze every point in the action. Make money on the foreign exchange market every day.
Trying to grab every point before the currency pair turns is a bad strategy. By this, you may lose the profitable trade.
Solution: It seems obvious, but don’t be greedy. It is possible to get a reasonable profit, but there are many other opportunities as well. Money moves every day; there is no need to be greedy. The next opportunity is here.
Hesitant deal
Sometimes you may find yourself regretful of a transaction. This happens when the trade you opened is not immediately profitable, and you start telling yourself that you have chosen the wrong direction.
Then you close your trade and reverse it, just to see the market return to the initial direction you chose.
Solution: Choose a direction and stick to it. All the back and forth switching will only make you lose a little account at a time.
Try picking top or bottom
Many new traders try to pick a turning point for currency pairs. They put the deal in a pair, and as it continues to go in the wrong direction, they will continue to increase their position, ensuring that it will turn this time.
If you trade in this way, you will end up with more risk and extremely harmful trading than you planned.
Solution: Trade with trends. If you think the pattern will change and you want to trade in new possible directions, please wait for the confirmed trend change.
Rejection error
Some deals just don’t work. Want to be the right all the time is human nature, but sometimes we are not. As a trader, sometimes you just make mistakes and move on, instead of sticking to the right ideas and end up with a touted account.
Solution: This is a difficult thing to do, but sometimes you have to admit that you made a mistake.
Whether you entered the transaction for the wrong reason or it just didn’t work the way you planned. Either way, the best thing to do is admit your mistakes, give up the deal, and move on to the next opportunity.
Purchase system
There are many “Forex Trading Systems ” available for sale on the Internet. Some traders are there looking for a “100% accurate Forex trading system ” that is always elusive.
They kept buying systems and trying them out until they finally gave up on the decision and couldn’t win.
Solution: Winning in Forex trading is like anything else. Build your system and stop buying worthless systems on the internet. Accept the fact that there are no free lunches.