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Major Factors That Cause Forex Traders To Loose Their Money In Forex Trading - Business - Nairaland

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Major Factors That Cause Forex Traders To Loose Their Money In Forex Trading by peterowode: 12:31pm On Oct 11, 2012
hello Forex traders, out there.
Have been thinking really what are the real reasons for the cause of forex traders loosing entire investment in the forex market.
I know the basic reasons for anyone to loose it money while trading could be Greed, Inexperience, Poor Internet connection/epileptic power supply.

I believe there are still many more reasons that kill forex traders.
Lets list them below?
Re: Major Factors That Cause Forex Traders To Loose Their Money In Forex Trading by Toks2008(m): 12:34pm On Oct 11, 2012
ADRENALIN FACTOR,HOW DAMAGING IN FOREX TRADING?

Many traders wil never ever make it trading forex simply because they find it difficult to control the adrenalin rush. But first let me define Adrenalin?

Adrenaline is a hormone produced by the adrenal glands during high stress or exciting situations. This powerful hormone is part of the human body's acute stress response system,

Forex trading is about decision making and many traders make hasty decisions to jump in and out of trades at the sight of a temporary fast moving trend or any retracement against their position.

This is one big problem and its usually occasioned by fear which is brough about by greedy lot.

In a nut shell, we find it difficult to maintain a clean profit growth and we find ourselves losing all we gained in just one crazy moment.

But unfortunately this act cannot be tamed easily and we find ourslves losing our equity over and over again not because we don't have a good trading system or because we don't know what we are doing but its simply adrenalin in action.

So how can you overcome this? Very simple. Have a seperate account where you trade with the discipline required, obeying your entry and exit rules with good money management and have another account to velt your adrenaline trade executions on. This is the only way out in my opinion if you are the indisciplined type otherwise you will only be wasting your time, money and resources trading this business because you will never ever ever make it if you maintain a single account knowing your adrenaline will always come to play.

Hope this helps
Re: Major Factors That Cause Forex Traders To Loose Their Money In Forex Trading by peterowode: 12:48pm On Oct 11, 2012
Many traders have find it very difficult to avoid making panic trades,they quickly enter into a trade once they a see a small fast movement, they quickly enter the trade only to end up loosing their money in big losses

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