why majority of traders lose money?

[Berserker]

Lack of discipline, practice on a demo account, and knowledge is the reason why the majority of forex traders lose in the forex market. Along with these reasons, I think using leverage without proper risk management gives rise to losses that are often hard to recover.

 

[onomatopoeia]

Imo, social media advice also has an impact on new traders in being impatient and starting to trade before they have a specific trading plan in place. The lifestyle portrayed on the social media platforms makes the traders think trading to be a quick money making scheme. Having a good amount of research and analysis will help traders to understand the true nature of trading.

 

[matsuyuki1999]

For many reasons.
Apart from lack of knowledge and skills, most of it is because bad risk management, emotion/expectation control and impatience.

 

[Mesology]

Many traders fail to understand the market sentiment and when and how they should time their trades and this leads them to completely missing out on a good and smooth journey because they remain unaware than try to learn from their mistakes. Therefore, a clear and open mindset before you approach the market is essential.

 

[Multisulcate]

Losses are not necessarily failures. They are failures if they don’t teach you a lesson. No trader can be 100% profitable and the goal is to make maximum wins. Don’t turn impatient if your trades don’t seem to work. Instead work hard and improve your strategy.

 

[Hipparchy]

The main reason that is said behind the failure forex traders experience day in, day out, is their own greed. Though forex trading is about taking risks and investing wisely in the hopes of making a lot of profit quickly, this person risked everything by putting all his trust into one single trade. A trader should never be greedy and only aim to be smart with his investments.

 

[HeavLeighGill]

Exactly, rushing or being lazy can definitely play a big part in this. There are good traders out there that put in effort and still lose money, but a large percentage of the failed traders you hear about can be blamed on those two factors.

 

[Mucivorous]

Due to the lack of knowledge, patience and willingness to learn, a big portion of traders lose money in the market. A successful trading career requires a lot of hard work, patience and discipline.

 

[Siphonic]

Lack of knowledge and experience are still okay but traders who are not ready to accept losses often have short-lived careers. Not knowing something is one thing and accepting that you don’t know everything is dangerous. Such an attitude often becomes a reason behind failures.

 

[Beastern]

I was always good at predicting the market direction. However my monkey brain was greedy and always went all-in with 100% margin level. I only became a profitable trader once I started doing risk management, and doing boring small lot sized trades with lots of spaces for sl and tp.

 

[Spectrograph]

In my opinion no one remains a loser forever unless they give up and quit. Those who are determined to give their best will always be successful in the end. We just need to keep on trading and never quit even if we face losses and setbacks in forex. Trading is a skill that has to be developed with practice. So, never give up on trading and keep on trying to improve yourself.

 

[Angiosperm]

They fail because they have insane expectations from the market. And the premise of all those expectations breed because of their lack of market knowledge. Forex is not some game where you bet all your money and become rich overnight, and many don’t get it. Hence, they fail.

 

[Macromania]

Because it’s not easy to make money through forex trading. A trader may think of it as an easy way of making money but without real hard work, you won’t get real results. Start with obtaining the basic knowledge and then on framing a profitable strategy.

 

[Mobey_D]

I believe that the statement '98% of traders loose money' portrayed by regulators is a skewed statistic designed to deter investors (same with leverage restrictions). Heaven forbid the plebs work out how to escape the system.
Seasoned traders loose many a trade, but with risk management, good risk to reward and sound strategy less winning trades can still be more profitable than more loosing ones. Therefore, they would fall under the category of 'loosing money' despite being profitable.

 

[Agynary]

Losses don’t mean an end to your career. They are a part of your trading journey just like profits are. So, just normalise losing money and try to find out what could have been done that would have saved you from the losses.

 

[Monopial]

Most traders fail, in my opinion, due to a lack of live trading experience, and most traders bet with greed rather than patience. Many traders fail due to a lack of proper trading psychology. It is necessary for traders to practise emotional control, which may take some time.

 

[Chorology]

Don’t give much importance to your losses because they will take away your attention and will keep you from seeing the market the way it is. Instead, focus on the learning process because your knowledge will stay with you forever and pave ways for your wins.

 

[Contraband]

That is because they do not organise their moves, strategize or plan what they should be doing. Instead, they allow their impulse to guide their journey, causing them to quit trading due to empty accounts and no profit returns. Traders need to learn to tackle their emotions and the market’s nature subtly so that they can minimise risk.

 

[Quibble]

It’s more about your seriousness than the money you use for trading. You can’t open just any trade and expect it to work for you. Your trades will work only when you know what you are doing and how you can stay on track with your goals.

 

[Reticular]

Traders who lose focus. This focus can be the focus on the market or focus on themselves. Focus on their trading strategies, focus on their trading plan, etc.
While focusing on the market, a trader should know their capital, their strategies, risk-reward ratio, leverage, etc. Education helps in learning all of that. If a trader does not have proper education about the market, a trader fails to trade and profit. A demo account helps a trader learn too. If a trader does not practice on a demo account, a trader fails due to that reason, too. Focusing on oneself means focusing on one's emotions while trading. This is crucial, and if traders journal and observe, traders might be able to control their emotions in the right way.
If they do not focus on any of these, they lose.