Yes, the bitter reality is that only 5% of Forex Traders make any money at all. Even hedge fund owners and bankers lose money once they try to trade on their own. This happens because they're used to trading according to a set of rules that their employers requires them to trade by.
But when they leave their employer, those rules go out the window and they have to manage their own internal motivations. This is how greed and fear can get the best of even the most knowledgeable traders. Shockingly, a lot of these traders end up having to "fall back" on teaching what they know and YOU end up paying them thousands for a training seminar. [Mr. Ezekiel Chew]
Many reasons that cause a person to lose a lot of money in forex. Greedy, impatient, even the most basic is trading without knowing knowledge because it only knows the outside of the forex is like money making machine.
According to me, the main reason of loss money during trading is not control own emotion. Most of beginners lose money because of lack of knowledge & practices. I am not agree with your % information. Most of expert who’s suggest for everyone their they always earning money with using own forex strategies. I am also favor with this point if I make own forex strategies and execute them definitely we can earn money here.
You're right. And if we wanna be a successful trader, we must do the opposite of those. We must continue learning, but we don't need to burden ourselves to make high investment, the most important is we can manage our capital that we have.
There are many reason behind losing money in forex :-
1. Lacks of knowledge
2. Lacks of practices
3. Lacks of self confidence
4. Unable to control emotions
5. Hoping always high profit then taking high risk
Not to kick a down horse here but what everyone here before me has said is true.
The Five Reasons Why Novice Traders Fail is 'GIBLI':
Poor planning is the key to failure.Poor money management follows.Taking high leverage could be a course too since it posses higher risks. Naked traders (those without indicators) especially newbies will loose a lot of cash. It is important to be knowledgeable about markets before trading.
Many reasons why there are many trader lose money in forex, sometimes the basic mistakes is the reason why many trader lose money. Keep learning and keep trying, so we can be a better trader.
Yeah, and lack of knowledge is also be a reason why most traders failed in forex. Don't feel bored to learn and make more practice, it's very useful to improve our trading skills.
Forex is not easy business so we need good knowledge and experience in forex for income money quickly. Forex is a hard business than other business because this is risky business. We need learn first and if we start without learn, we can fall loss. Greedy can fall us in loss.
All of you are right . i agree with you all- many traders lose money because they didn't know proper forex trading business they have just simple forex basic knowledge than they try to trade real forex i think . and without good analysis you can't make pips/profits this market every-time so thats why you should need to learn forex proper way.