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What are the main causes of loss in Forex?


Upoctin

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From my experience I would say lack of forex knowledge and live trading experience is one of the main causes for loss in forex.

As a newbie many traders tend to trade with a real account without gaining proper knowledge and invest higher capital which later blow up their entire account.

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  • 1 month later...
4 hours ago, Harvey said:

It is mostly because of lack of knowledge about forex trading and most beginner traders rush into scalping because its one of the quickest methods to earn profit and end up blowing their accounts due to lack of basic trading experience.

Seriously i wish there should be some academic courses related to the forex trading because it is much needed in my opinion.

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  • 3 weeks later...

The most common cause of loss in forex is rushing into trading without any proper knowledge or trading experience. For example, scalping is one of the quickest methods to earn a profit.

And many newbies rush into it without a proper strategy and end up blowing their accounts. Some traders even give up trading after that.

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FX is one of the largest markets in the world. Traders in this market are aware of the high level of risk that is in the market, which can easily cause a trader to lose his capital if enough precaution is not taken by the trader. There is a belief that traders lose more money than they make in the forex market, but this is mainly true for novice traders and experienced traders who have been in the market for a long time. Successful traders practice the right way to trade. 

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In my view one of the reasons why traders lose is wrong perception how difficult is trading. Some newbies think that they are lucky and will be able to make money fast but unfortunately this is the way straight to deposit wipe out. I trade very slowly and carefully with Hotforex, increasing lot size and setting stop loss strictly according to my trading plan. 

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