Why Most Traders Loser Money

lose money on forex

It is a very sad fact that the majority of traders loser money within the first 6 months of trading. It is even sadder that you might end up being one of those traders. It is our goal with this article to help prevent you from becoming another casualty of the markets. In this article we will discuss all things that cause traders to lose their shirt. If you can get rid of these traits, then you will be able to survive the markets. Sometimes surviving is all you can do.

risk_management

Money Management

We know that this seems so boring but proper money management is the key to lasting a long time in the market. Most Traders who blow their account do not practice proper money management. Proper money management is designed so that you can live to trade another day. It is created so that when you are trading that you get to make 100-1000 or more trades before your account even risks being wiped out. What bad traders due to constantly change their trading size based on current win and loss rates and this is awful. Your trading size should stay consistent. Most good traders only risk 1 to 10% of their account on any one trade and this is what you also need to start doing.

Have A Good Strategy

Having a good strategy means having a high probability strategy, one that you can use that will make you profitable or at the very least break even. How do you know that you have a good strategy? You need to first trade it in demo or Sim mode before you take it to your real money account. You need to test test test and use proper money management skills.

Bad Self-discipline

Bad self-discipline is another one of those things that bad traders have. Bad traders go on tilt, ignore their strategy and go wild on the market. This typically ends with them losing even more money than they would have if they would have just stepped away from the computer. If you plan to trade for a lifetime, then you need to build up your mental toughness and ability to walk away from the computer screen.

If you are able to do these things, then you will be more successful than the average trader who attempts to make money trading Forex and all the other markets.

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