Most traders come to Forex market and trade Forex with a little basic knowledge and strategy. Depositing a few hundreds of dollars or more will not be making extra money. So you need to work hard and build experience in this field before you start. About 90% traders lose their entire equity in trading Forex. You can’t beat Forex, no strategy works and you will 90% face losing your equity.
Reasons Why Traders Lose in Forex Market
- If you are a new trader and have recently started trading Forex.
- Lack of knowledge about Forex trading, those people who are inspired by other traders. They start trading as it is very easy with a click of a mouse button you can trade, but they don’t know what the results will be. They are unaware of market conditions, if some trades go in their favor they think it is very profitable, but later things get changed and market go against them and suffer big losses.
- Get the quick rich idea. Forex is not going to make you rich overnight. Forex is only for investing and you can expect some profits if you know what you are doing.
- Thinking about to trade more in a very short period of time when they close some trades in profits and don’t wait for the market to find another entry point.
- Follow one simple rule. Always look for wins bigger than your losses. If you setting stop loss and take profit values. Your stop loss should be less than your take profit value. Some traders think it is good to have 10 times high stop loss value than your take profit and this can lead to a very big loss.
- You can check my Meta Trader 4 recently closed trades history today as my stop loss value was very higher than my take profit.
It was really a disaster for me losing such a big amount in a single day.
MetaTrader 4 Screenshot Mobile
Now check the desktop version MetaTrader 4 screenshot
You can see having all sell trades and the market went against me which caused a big loss. This is what you have to know about trading Forex. You will face this kind of big losses in Forex world, but you have to be patient and happy because you learn from your mistakes.
Conclusion: Trading Forex is very profitable but risky. Even big traders suffer losses. If you can afford to lose money then go ahead and learn Forex. After having enough experience and knowledge of basic terms used in Forex world, you still don’t have to invest real money before you do so start trading with a demo account and see if you can make some profits. If you don’t have time and want to invest in Forex then check eToro.
Anyway, I will still insist not to invest or trade Forex the money you can’t afford to lose.