Lost a lot of money in forex

The Authority’ on Price Action Trading. In 2016, Lost a lot of money in forex won the Million Dollar Trader Competition. 1:1 risk reward is analogous to a random coin toss.

Why do most Forex traders lose money then? What human variables contribute to the success rate being much lower than breakeven for most traders? Perhaps the main reason most traders lose money is because the majority of people have little self-control and cannot resist the temptation to over-trade and over-leverage when there is no one to be accountable to. Another main reason most traders lose money is because they try to buck the trend for some reason, even though they KNOW they have a statistically higher chance of winning by sticking with the trend until it is clearly finished. As human beings we all have a tendency to pass the blame and find fault elsewhere. However, when you are trading badly, it is your fault and no one else’s. If you find you are losing money in the markets it is not your broker’s fault, nor is it the result of a bad quote, a bad tip, or a hardware failure.

Accepting responsibility for your losses and trading mistakes is paramount to turning your trading around. The first step in any self-help group like Alcoholics Anonymous is admitting you are the problem and that you have a problem. One thing that definitely prevents most traders from making money in the market is over-trading. So, if you are currently losing money on a consistent basis and you are trading lower time frames, you will definitely benefit by switching to higher time frame Forex trading. How many times have you won a few trades in a row, made some money, and then given it all back quicker than you made it?