Main reasons for loss:

[adel]

Low capital
Inadequate risk management
Indecisive Trading
Greed
Chasing Trend
Not admiting and realising own mistakes

Forex Trading Psychology
There are many answers in the market to this question: Why do most forex traders fail?
- Some blame it on over trading
- Some blame it on emotions
- Some blame it on revenge mentality
- Some blame it on impulse
- Some blame it on the market
- Some blame it on bad luck
- Some blame it on poor entry
- Some blame it on not taking profits
- etc etc etc

[razafsd]

There are many reasons. it depends upon market situation for example the direction of market. Wrong decesion, bad luck, Policies of different state banks of main countries are reasons for loss in forex trading. Main incidents which effect international market for example after the incident of 9/11 market were crash and people lost huge amounts. So it is not possible to describe all the reasons in one comment. There are many things which effect.

[bonna]

i take really high probability with rattling low production. losing control my care and was looney. market shut and ease i am in alive my trades alive. so lets see what be chance on close trading day. emotion is the primary conclude for losses.

[silpa]

I expect low balance is not the intellect for losing money in Forex. It is actually mainly happened because of the unwitting management of assay and capital and rapacity also. Group e'er poorness to get a decent profit

[rokonripon]

Main reason for loss:
1. Greed
2.Taking high risk and high volume trade at the beginning
3.Fear
4.Not controlling emotions

[triker47]

wese to iske kafi reasons hain per main jo sumjhta hun wo ye hai galt menegment, or lalch traders kay liay sub say pehlay zaruri hai kay wo apni menegment ko theek kerain uskay baad humain apany aap per control rakhna chahiay zayda lalch nahi kerna chahiay or juld bazi bhi nahi kerni chahiay ager hum aisa keringay to hum juldi hi apna nuqsan ker lain gay.

[asma abdo]

Main reasons for loss:
Risks of trading in the currency market
There are some errors that prevent merchants from achieving investment objectives. The following are some common pitfalls that can hamper forex traders:

* Failing to maintain discipline trade


The biggest mistake you can doing any dealer is control your emotions in trading decisions. To reach a successful Forex trader equation means to achieve a lot of lucrative deals and thus acceptance of a number of loss-making deals. Suffering from many consecutive losses Tlsab deal emotionally and Obaltala tested the patience of the merchant and confidence. Attempts to beat the market and to achieve profits must not give in to fear and greed understand Eodaan to a large loss shortly and out of control. And the triumph of emotion during the trading well-organized business plan that will help in maintaining discipline in trading. (Know your mindset can play a greater role in the success of the effects of the market, and can be read psychology and trade discipline and momentum of trade with discipline.)

* Trade without strategy


Regardless of the Malay market deliberating whether stocks or currencies, the first step in achieving success is to build and follow a trading plan. "Failure to plan is planning to fail" is a saying that applies to any kind of trading.To join the strategic business plan can help investors avoid some of the mistakes in the commercial trading the most common, and if you do not have a plan, let all things Alakhh and focused to build it now!!!

* Market failure in harmony


Before the market opens up, you must develop a plan for each commercial. Scenario analysis and planning counter moves and in each case the potential market that can help to dramatically reduce the risk of large unexpected losses. As the market changes, they provide new opportunities and risks. There is no panacea or guaranteed "system" that can be continued to prevail in the long run. Successful traders is that adapt to changes and market movements and adjust their strategies towards change. Trader is a successful trader who is ready for every situation and every case. Through the process of practice, education and harmony, and it keeps the package and constantly find new and creative ways to take advantage of the emerging market.

* Learning by trial and error


Without a doubt, the most expensive way to learn the trade in the currency markets through trial and error. The discovery of appropriate business strategies by learning from mistakes is not an effective way to trade any market. Since the forex market is very different from the stock market, the loss ratio of new traders at high expense. The most effective way to become a successful currency trader is to learn from the experiences of success. This can be done through formal education or through commercial enrollment with a personal trainer (Director Hsapatasstosmarh) has a remarkable track record. One of the best ways to perfect your skills in the shadow successful trader, especially when you add an hour of exercise on your own. (By blending good analysis with effective implementation, you can dramatically improve your profits in this market.)

* Outlook illogical


Regardless of what others are saying, currency trading is not a get rich quick plan. Ollosol to the stage of professionalism is not up to running fast for a short distance but like to run the marathon, success requires repeated efforts to master the strategies involved. When trading in ways that are high risk and attempt to force the market to provide extraordinary returns usually results require trade at high risk of capital is justified by potential profits. Already betting on trade discipline unrealistic gains mean abandoning risk and money management rules that are designed to prevent market remorse. (For more control over your trade, see Understanding Forex Risk Management.)


Leverage Management


In addition to all of these errors can infect all types of traders and investors, and there are tools in the foreign exchange market that can significantly increase the risk of trading. They leverage granted to forex traders merchant exposure to additional risk that must be managed.

Leverage allows traders an opportunity to enhance returns. But influence and leverage is the risk of a double-edged sword increases the downside as far as what adds to the potential gains. In the foreign exchange market allows traders to their accounts to double as much as 400:1, which can lead to huge commercial gain in some cases - and the expense of crippling losses in other areas. The market allows traders to use large amounts of financial risk, but in many cases it is in the interest of the trader to determine the amount of force used.

Most professional traders use leverage the value of 1:2 equivalent to the size of Lot or deal ($ 000,100) for each. The amount of leverage available comes from the amount of margin that requires each commercial brokers. The margin is just a good faith deposit, which carried out to isolate and broker of potential losses on trade. Gatherings and bank deposits and deposit one in the margin of the massive margin which is used to make trades with the interbank market. That anyone ever go wrong trade is known for shocking margin call, where brokers demand additional cash deposits, and if she does not get it, they will sell the position at a loss to mitigate further losses or recover their capital

[masud12]

Your facts are totally right. But there are also other reasons too. Like as lacking of proper knowledge, good strategy, confident and fear etc. A beginner must be careful from all kinds of facts that may the cause of his losing.

[rexrip]

Lack of proper strategy, analysis and Knowledge are the key factors which can be determined as the main reasons for loosing money in forex.We should have good skills which can be achieved from proper training in demo account,understand the business properly and investing at the right time.Also the capital management plays a huge role in avoiding loss.

[budado]

The main reason why many loss in forex trading is simply because they don't have stable strategy to use. the more you trade the more you earn the more you earn the more you make money. This is usually what we want and what we are doing right? But that's the wrong approach. In forex trading the more you think about making money the more you going to loss. In forex trading its all about strategy. Some strategy last a day some last a week some last a month and some last a year. No matter how long is your strategy time frame is what is most important is that you follow your strategy until the end.