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what is the main cause of loss?


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  • 2 weeks later...

lack knowledge not enabling traders to analyze the market and make good trading decision. so, if traders decide to trade in live account but have no appropriate knowledge about market, they'll many many losses than see that they able to generate profits. no knowledge mean traders need to take practice and learning. and not trading in live account and chasing real profit.

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Well yes indeed I agree with the thread starter that it is not only due to one main cause that we have loss it is a combination of factors due to which we have a loss in our trading in fact, so we have to focus on improving all of these factors so that we do not end up with loss every time.

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Dear buddy in my think of view the cause of losses reason it is 

1-lack of knowledge and experienced

2-for greediness 

3-for emotions

4-without knowing the market trend

5-trade without know news.

and have lots of things.

 

do you know that?

You have cited some good reasons for which traders at beginner stage as well as at the latter stage do suffer from loses. Also I will like to add another internal factor which is quite subjective and it is analytic power of a person. So beign anallytic is a vital internal asset of a trader to analyse the market with meleable foresight. I use the word meleability here because one have to adjust according to the market in the long run but not with his projected presumptions.

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The number one thing that causes losses is lack of knowledge. When a trader lacks that trading knowledge, it will be pretty difficult for the trader to make anything out of Forex. It wouldn't be an overstatement to say that a trader who has no knowledge is bound to fail in Forex because there is simply no way he can attain success. It is a simple and straight forward rule that applies in Forex.

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The main reason for lossing in the forex trading the trader are not following the trading rules and also they are not following money management for their account.If they are following money management for their account they are never loss in the forex trading.For getting success in the forex trading is main thing knowledge and discipline.

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The main cause of loss is that the traders who are trading in here is not having the enough forex trading knowledge to trade in the business. This thing will make them not to be having the skills that they will use to make profit from their tradings. If the trader wants to control the type of loss that he or she is making, he or she should be able to learn how to do risk management.

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  • 10 months later...

Sometimes lacking confident is one reason why we just go into a losing mode but also that comes when we don’t know what to do or have any knowledge and experience so there are so much that goes into making us lose. I can be sure about one thing which is that I will never lose completely due to OctaFX broker; it has given me excellent back up system with rebate service where I can earn up to 15 USD per lot size trade.

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First you are in such a hurry to earn money, many new comers that i met always have this kind of issue, second emotional control. Even they are such a good and potential one, but because of their greediness, their next trading become such a hell that makes them loss. Last, because of wrong misconception about forex.

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  • 2 weeks later...

Our action is our biggest cause of loss, and this is normal while not also at the same time. Main cause of loss like misunderstanding of signal or lack of skill to interpret those signals is one of the causing of loss, but if we can control emotion which is our action too won't bring demise to us.

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  • 2 months later...

many of which lead to loss in forex trading is because due to not having a good psychology. With this increased psychology will help us to be successful in this business. Therefore we try to continue to improve our psychology  good, so it will enable us to succeed in this business

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loss caused by many things, such as we have a bad psychology when trading. Forex is a business that has a high risk, in order to minimize the risk then we need good psychology. to train a good psychology can trade using a small capital

Well that is right i don't think that is something we should discuss futher because people indeed lose more of their money because of bad psychology, like fear when it is actually the right time to open a position or let our position keep floating. Actually to minimize the risk you need good risk managmeent also psychology alone won't help a lot.
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  • 2 weeks later...

You can’t put finger on just one thing because it’s multiple stuff that plays the role of a killer and that’s lack of discipline, knowledge, experience and skills at times, hence we should not blame one thing for loss but look at overview of the market to understand our mistake and look to correct it in time.

 

I am able to correct all my mistakes with help of my broker OctaFX, it has superb demo account and that allows me to trade really well because the servers that are provided for it are quick and with that I can obverse the market and been a scalper, it’s a massive advantage to be able to watch the market and know where it’s going.

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loss are caused by many things such as lack of trading experience, in this forex then we need to multiply the experience by trading with small capital or trading using a demo account. With increasing trading experience will make us be trading well

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You can’t put finger on just one thing because it’s multiple stuff that plays the role of a killer and that’s lack of discipline, knowledge, experience and skills at times, hence we should not blame one thing for loss but look at overview of the market to understand our mistake and look to correct it in time.

 

I am able to correct all my mistakes with help of my broker OctaFX, it has superb demo account and that allows me to trade really well because the servers that are provided for it are quick and with that I can obverse the market and been a scalper, it’s a massive advantage to be able to watch the market and know where it’s going.

There are many things for sure just like you said with discipline, knowledge, experience and other things. Blaming for one thing is okay as long as you know what you said, i mean there are traders who has good knowledge but lack of experience yet they suffer losses because of that even they know what to do and how to do but don't know when to do. I do agree that we should corrected our mistakes and don't just blaming for it.

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There are many things for sure just like you said with discipline, knowledge, experience and other things. Blaming for one thing is okay as long as you know what you said, i mean there are traders who has good knowledge but lack of experience yet they suffer losses because of that even they know what to do and how to do but don't know when to do. I do agree that we should corrected our mistakes and don't just blaming for it.

That is such a human nature isn't it? blaming the other factor just because we cannot make profit with ourselves, but i think that is right i mean an intelligent trader blame for something which become the fact, like maybe they still lack of experience or something like that.

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