In my humble opinion, no one loses in forex trading because of the market moving against them. I cannot think of any other reason for people losing money in forex trading but for the reasons stated below: *
Over Trading. Opening too many positions or opening large quantity is considered as over trading. Do not open more than 3 currency pairs at a time. *
Trading with high leverage. If you trade with leverage of 1:50 or more chances are very high that you make big profits and lose everything in no time *
Buy High Sell Low. Traders take too much time to decide on the trade and when the currency pair reaches day high, all indicators may point northwards giving a buy signal. Never buy close to day high and never sell close to day low. I have heard many traders saying "I am very unlucky. The moment I buy the currency starts falling and the moment I sell it starts going up'. They experience this because they buy high and sell low, not because they are unlucky. *
Taking high risk for small profits. This is a very common mistake made by most of the forex traders. They keep taking small profits and when the market moves against them they hold on to the positions. They lose profits of 10 trades in 1 loss making trade *
Getting married to a position. Holding a loss making position for long time is called getting married to a position. Most of the people do this in equity market too. They may buy something at Rs. 100 and may hold on to it when it falls through 90,80,70,60...3,2,1 They will never cut loss. *
Scalping. Scalpers make too many trades and go for very small profits. They get in and out very quickly. I have never come across any scalper making money consistently in forex trading.. If you don't commit the above mistakes, you can be a sure winner in forex trading
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