Why Do Most Traders Lose?
Statistics show that approximately 70-80% of retail Forex traders lose money. The main reason isn't lack of technical knowledge — it's behavioral errors.
1. Excessive Leverage
The biggest trap for beginners is using maximum leverage. Just because 1:500 leverage is offered doesn't mean you should use it at maximum.
Solution: Start with effective leverage between 1:50 and 1:100. Never risk more than 2% of your account on a single trade.
2. Not Using Stop Loss
Hoping "price will come back" and not placing a stop loss is the number one reason for blown accounts.
Solution: Set your stop loss before entering every trade and never remove it. Your risk/reward ratio should be at least 1:2.
3. Overtrading
Opening dozens of trades a day increases spread costs and leads to emotional decision-making.
Solution: Set a daily maximum of 2-3 trades. Only wait for setups that match your strategy.
4. Emotional Trading
Opening "revenge trades" after losses or increasing lot sizes after wins due to overconfidence is the biggest enemy.
Solution: Keep a trading journal. Record why you opened each trade. Step away from the screen when you feel emotional.
5. Going Live Without Enough Practice
Trading with real money without sufficient demo practice is like going to war without training.
Solution: Practice on a demo account for at least 3 months. Once you can close 3 consecutive months profitably, transition to a real account with small capital.
Conclusion
Avoiding these 5 mistakes automatically puts you in the top 20% of traders. Success in Forex requires discipline and patience, not genius.