Why Forex traders lose money? by Pro trader
Why Forex traders lose money? is one of the most common you will come across over the internet. This is how Petko Aleksandrov starts answering this question.
Petko Alexandrov is the Head Trader at EA Forex Academy:
https://eaforexacademy.com/
In this video, you will find the answer to the question "Why Forex Traders lose money?"
The first reason that he finds out is the lack of education. This is essentially important because more than 95% of the people start trading without taking a single class. Nowadays it is much easier for everybody to learn and especially when there are online trading courses. You can find many of Petko's courses if you click on the link below:
https://eaforexacademy.com/courses/algorithmic-trading/
The second answer to Why Forex traders lose money? is that account size. Most of the Beginner Traders start trading with a small trading account which causes crucial losses and most of the time losing all the money during the first month. This is because the trainers are eager for huge profits and in the beginning trading with a small account causes them to lose.
Normally after few profitable trades, the traders open bigger trading positions which are inappropriate for their trading accounts.
The third answer to Why Forex traders lose money? are the scam brokers. As with every other business, there are companies which are playing behind the rules. The scam brokers don't give the chance to the traders to benefit even if they have a profitable strategy. These companies are working over the phone and they convince people over the phone that they should invest with them. The result is crucial - once being scammed from this broker people lose all their money they have invested.
The fourth answer to the question Why Forex traders lose money? are the emotions. Most Traders prefer to trade manually because they feel like they control the market. Unfortunately, the emotions caused the traders to lose money, there are two emotions that are part of manual training.
One is the fear - which is seen even when the Trader is on a profit. He is afraid that he will lose his profit and he hurries to close the trade. Some people have the tolerance to keep losing trades for months because leave it will go in their direction and when they are on a small profit they hurry to close the trade.
The second emotion is greed. Traders get greedy after a couple of profitable trades. They start opening bigger positions because they regret that they traded with smaller positions. They even don't feel happy with the profits they did. But having a bigger position in a smaller account causes that account to blow.
The last answer to the question Why Forex traders lose money? Is money management. Most of the traders lose money because they have poor money management. Everyone should risk no more than 2% to 5% from the account.
If you have any questions personally to Petko Aleksandrov you can write in the forum of Forex Academy:
https://eaforexacademy.com/forums/forum/general/
If you're interested in professional education click the link below:
https://eaforexacademy.com/packages/
Petko Alexandrov is the Head Trader at EA Forex Academy:
https://eaforexacademy.com/
In this video, you will find the answer to the question "Why Forex Traders lose money?"
The first reason that he finds out is the lack of education. This is essentially important because more than 95% of the people start trading without taking a single class. Nowadays it is much easier for everybody to learn and especially when there are online trading courses. You can find many of Petko's courses if you click on the link below:
https://eaforexacademy.com/courses/algorithmic-trading/
The second answer to Why Forex traders lose money? is that account size. Most of the Beginner Traders start trading with a small trading account which causes crucial losses and most of the time losing all the money during the first month. This is because the trainers are eager for huge profits and in the beginning trading with a small account causes them to lose.
Normally after few profitable trades, the traders open bigger trading positions which are inappropriate for their trading accounts.
The third answer to Why Forex traders lose money? are the scam brokers. As with every other business, there are companies which are playing behind the rules. The scam brokers don't give the chance to the traders to benefit even if they have a profitable strategy. These companies are working over the phone and they convince people over the phone that they should invest with them. The result is crucial - once being scammed from this broker people lose all their money they have invested.
The fourth answer to the question Why Forex traders lose money? are the emotions. Most Traders prefer to trade manually because they feel like they control the market. Unfortunately, the emotions caused the traders to lose money, there are two emotions that are part of manual training.
One is the fear - which is seen even when the Trader is on a profit. He is afraid that he will lose his profit and he hurries to close the trade. Some people have the tolerance to keep losing trades for months because leave it will go in their direction and when they are on a small profit they hurry to close the trade.
The second emotion is greed. Traders get greedy after a couple of profitable trades. They start opening bigger positions because they regret that they traded with smaller positions. They even don't feel happy with the profits they did. But having a bigger position in a smaller account causes that account to blow.
The last answer to the question Why Forex traders lose money? Is money management. Most of the traders lose money because they have poor money management. Everyone should risk no more than 2% to 5% from the account.
If you have any questions personally to Petko Aleksandrov you can write in the forum of Forex Academy:
https://eaforexacademy.com/forums/forum/general/
If you're interested in professional education click the link below:
https://eaforexacademy.com/packages/
