Why Do I Keep Losing Money Trading Forex?

Why Do I Keep Losing Money Trading Forex

Why Do I Keep Losing Money Trading Forex?


Why do i keep losing money trading forex is a question we hear on a weekly basis. If you have been trading for an extended period of time it’s more than likely that you experienced some losses. It can be difficult to understand why and how these losses occur, which is why we created this page to help traders understand the many factors that can affect their strategy.

Forex is always changing and evolving, so below are 5 popular reasons why traders end up losing money.


#1 – Trading out of emotion


This is always the number one reason why traders lose. Emotions cause false signals in the market. This is why some people recommend trading strategies that are based on the analysis of high volume price bars or technical indicators, such as triangles and moving averages. These tools can help keep emotions out of trading.

In these situations it’s best to count to 10, step away from the charts and try to calm oneself down before continuing trade execution.


#2 – Platform and broker issues


Any time you place a trade with a forex broker, there is always the possibility that the execution will be delayed or cancelled. In the event of a platform glitch or failure, it’s best to wait it out and not pass judgment until after the trading session is over. These problems occur all too often in forex trading, and can cause significant losses if traders act out of emotion in response to these scenarios.


#3 – News


The news plays a very important role in the markets and can cause significant changes to the price action.

In some cases, news can have a positive effect as the market reaches new highs. In other scenarios, it can take money out of traders’ accounts by causing them to reverse positions after taking profits too early. We recommend that you do your own research in these markets to determine which news will cause you to make or lose money before making any trades.



#4 – Timeframes

When planning your trades you should be aware of the timeframe in which you will use to initiate and execute your trades. This will help in the event that there is a delay when placing the trade or if the broker fails to execute your order. These situations can affect your ability to make money, so it’s crucial for an active trader to have a clear understanding of these factors before trading any specific market or security.


#5 – Trade selection


There are many different factors that must be considered when planning each trade. The most important thing to keep in mind is that you should never enter a trade unless you expect to make a profit. Stay with A Certain Pair until you master it.


I Lost All My Money In Forex


I have heard this statement from so many people and there are many articles here to help new traders. ” (So Tell A Friend) ” The first reason you lost all your money is because you were over leveraged. Time and time again, I have seen brand new traders and they have 10-15k and they trade 15 lots and BOOM. Trade goes the wrong way and it is gone.

So what Happened? Everyone who gets into forex thinks it is easy money, and it takes time just like everything else in life. I blame Youtube for this to be honest, These guys out there flashing cars and homes telling you it is easy. Trust Me when I say these guys are snake oil salesman.

Stop placing all your cash on one trade, Learn to manage your money. That is the truth about trading forex. The guys who loose all there capitol, are the ones that think they are going to make 20k a day. And that is all they have in there heads.




Look to win in forex you need to learn money management, take what the market is giving that day, and stop using all your capitol on one trade. It really is that simple, folks make this way harder than it needs to be, and every trader will loose that is trading my friend. Just Facts. It is how you manage those losses that keep you in the game.


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