why do forex traders loss money, how do you stop losses?

[nahiyar]

Lossing money also depends upon the strategy of the trader.A trader following hedgin strategy will face small losses than a trader following the naked or scalping strategy.In hedging strategy, we can minimize our losses by opening the positions in reversal direction, and giving a tight TP and SL to each position with some difference of pips.So even if the SL is hitted in one, we are still making profits in another, and as a result, our loss will be minimu unlike in naked and scalping strategy.

[powerz]

The problem of most traders is that they don't like to put a stop loss; they want to be always winners. They leave the trade going aginst them, and the can't close it on small loss in the hope that the price goes back to entry point, and eventually lose everything.

[Morgan]

The problem of most traders is that they don't like to put a stop loss; they want to be always winners. They leave the trade going aginst them, and the can't close it on small loss in the hope that the price goes back to entry point, and eventually lose everything.

they always hope the price will back again to their entry point
that's why they keep trading without stop loss
sometimes it works, but sometimes MARGIN CALL

[powerz]

they always hope the price will back again to their entry point
that's why they keep trading without stop loss
sometimes it works, but sometimes MARGIN CALL

I totally agree with you. Sometimes it works, but most of the time it is margin call. They think loss doesn't exist in forex. But they ignore that forex is like other trades it is subjected to loss as well as to profit.

[LeeMinHo]

Traders still get loss because forex market always change day by day . So very hard to predict the right direction of forex market .

[enjoylife]

There are many reasons why forex traders loose money as they can be lack of patience and discipline , lack of practice in demo account , lack of basic knowledge or profitable trading plan. So traders need to take care of these things.A trader can place stop loss before performing his trade and there is a option of modify order and he can enter stop level.

[adnan10076]

I think the biggest mistakes is Failure to manage risk........
Risk management is key to survival. You can be a very skilled trader and still be wiped out by poor risk management. Your number one job is not to make a profit, but rather to protect what you have. As your capital gets depleted, your ability to make a profit is lost.

[theny]

I think the biggest mistakes is Failure to manage risk........
Risk management is key to survival. You can be a very skilled trader and still be wiped out by poor risk management. Your number one job is not to make a profit, but rather to protect what you have. As your capital gets depleted, your ability to make a profit is lost.

and greed are always with us in the trade, so do not think very well how we manage the risk of trading with our good circuitry is always forced myself to get big profit in the trade is where the problem

[adnan10076]

Stop loss order is an essential tool used in FOREX trading to limit losses if market moves against an open position. If you don't limit your losses by using preventive stop loss orders, you cannot trade with profit over a long period of time.

[hemaabdo]

there are several cause lead us to loss our money most important one is lack of enough education and second is that human greed
we should train well and make our strategy and try it

[adnan10076]

Most new forex traders do not take the time to learn what drives currency rates. When some news or a statement is due out, they close out their positions and sit out the best trading opportunities; they are taught to only trade after the market calms down. So essentially they miss the whole move and then trade the random noise that follows a fundamental price move. Just think for a moment about technically trading the aftermath of a price move; there is no potential.

[kalex76]

Loss just becomes proportional to the risk factor taken without any knowledge ...its a very natural thing in the market but we should trade with discipline .

[adnan10076]

In short words i will say that to stop losing or to recover losing, one should know his mistakes and learn from them.

[adnan10076]

Factors like emotions and slippage cannot be fully understood and accounted for until trading live. Additionally, a trading plan that performed like champ in backtesting results or practice trading could, in reality, fail miserably when applied to a live market. By starting small, a trader can evaluate his or her trading plan and emotions..............

[penaltev]

Factors like emotions and slippage cannot be fully understood and accounted for until trading live. Additionally, a trading plan that performed like champ in backtesting results or practice trading could, in reality, fail miserably when applied to a live market. By starting small, a trader can evaluate his or her trading plan and emotions..............

Of course, excessive emotion is one of the causes of loss in trading forex. The trader to control your emotions in order to calm and discipline in trading. In addition, the lack of knowledge and experience also led to loss. The solution is to learn and practice in order to have a good ability.