Why Forex Traders Lose Money
Why do Forex traders lose money in this video, guys, I’m going to share with you four reasons why Forex traders lose money, but stick to the end guys, I’m going to give you a resource that can help you turn that all around. And ladies and gentlemen, what’s going on. This is Eddie Harvey coming to you guys today.
We’re going to talk about why Forex traders lose money. All right. So listen, there, there are reasons why would I live about four weeks? Is that the reasons you lose money guys are reasons that are right in your face. You’re filling them. You’re right there, seeing it happen before your eyes, but you can also correct it. And here’s something guys that is not a game of hide and seek where you have to be all knowing to figure it out. Okay? The answers are right up front of you.
So let’s dive into it now, listen, you’ve heard these things before. I’m sure some of them, you have some, you haven’t, but the answers are obvious guys. It’s in what we’re doing. Okay. So even if you say, even if you look at strategy is important. Yes, absolutely. But even if you have a strategy of you’re committing these things, you shouldn’t be doing as I call them the don’ts for wrecks. If you’re, if you’re doing these things, you’re going to not have a very, very happy day in the market. What are these things I’m talking about? All right.
Overleveraging
So getting right into it, guys, that very first thing, the very first thing guys, that causes people to lose money when they’re trading is what they over leverage. Now, what is overleveraging overleveraging is simply meaning your risk and way more than you should be risking on a trade.
Okay? You’re, you’re using a, a bigger lot size because you want to try to make a lot of money that much, faster, that much quicker become profitable on a bigger scale than what your account can truly handle. Okay? So when you over leverage, it’s cool. I would say it’s cool when you win, but when you don’t win, that’s not a good recipe, right? Because over leveraging is going to lead to you, wanting the one or two things. I, uh, a either blowing your account or be losing a big percentage of your account. So don’t, overleverage okay. That’s the very first thing don’t over leverage guys on your trades. What can your account handle? That’s what you want to be trading in a rule of thumb. If you don’t know, if you want to use a 0.01 for every $100, you have a right. So that’s the first reason, reason.
Stop Loss
Number two guys, people do not use a stop loss. That’s a reason for a straight as lose money. You’re not, you’re not losing the stop-loss. You might say, oh, I’m scalping. I’m getting in and out of the market quick, trying to get five to 10 PEPs or whatever you’re doing. However you trade or you’re watching the trade, doing all of these different things. And that’s cool. But for the second you turn your head, the trade can reverse on you. Things can go not as planned. You can think all day long, you’re going to know how to market is going to move. But at the end of the day, we do not control the market. The market does what it wants to do. So when you’re 100% confident that this move is going to happen his way, and then it turns around and go another way, you’re left thinking like, oh my gosh, I didn’t expect that.
So, and that situation, you typically should use a stop loss to, just, to, to hedge against a situation like that happening just in case. Right? Meaning that if that trade does reverse against you, you’re gonna, you’re going to be, uh, in a situation to where it’s your stop loss. It’s gonna stop you out. Okay. And it’s going to limit the amount of loss you had on that trade. Okay. So you want to use a stop loss guys because not using the stock post turns out bad in most situations. Okay. Some people don’t like it because part of it is because, you know, obviously we know the market, as they say, the, the, the, the banks, whoever, the whoever trading, the market makers, they can see your stop loss. That’s one thing they can do. Right? Okay. But you gotta look. There’s millions and millions of people are trading.
But if you have confidence in your strategy and knowing how you, how you trade that’s something, in most cases, you’re not going to have to just be worried about them looking for your little old trade. They got bigger fish, fish to fry. Okay. So you want to definitely use a stop loss, not having one does not boat. Well, in most cases. So use a stop loss guys. What I’m sharing with you all, these are the things I’ve done. Okay. I’m not telling you anything that I personally haven’t done. So I’m guilty as charged. That’s how it, that’s why I can talk about them because I’ve been there. I’ve done it. I’ve experienced it. You guys, I have a group over on Facebook, a free group, a private group, though, based on the platform that I’m a part of where I give people under the hood inside, look at the platform, uh, that I’ve learned to Trey with.
And I utilize to, to, uh, be in the markets with, right. I, um, I’ve close to 3000 people in that group now. And I connect with people while I’m engaging. And I’m having conversations with people. And when I talk to people and I find out, ask them how’s trading going. And when I have people to tell them that it’s not going as well. Some of the things I’m talking to you all about, these are reasons why it’s not going as well for them. Okay? So it’s just not me. This is most people, right? When they lose money, these are the reasons why, okay.
Revenge Trading
The third thing, guys, the third things is revenge trading. Now what is revenge trading? Revenge trading is when you’re going back into markets to try to get back what you lost. And maybe you, you had a bad trade. You lost that trade.
And instead of cutting your losses, you’re like, you know what? I want to get my money back. And then some, so I’m going back into the market and going to trade even more. Okay. Going to trade even more. Right? So what is that going to lead to now? You’re emotional. You shouldn’t be trading emotionally. Your you’re not thinking logical. You’re probably not seeing the charts as clear. And you’re like, look, I want my money. And what ended up happening, what ends up happening is that you lose even more. Okay? Because you’re not in a proper state of mind to be trading. So it’s best that you cut your ties, get up outta there and you live to trade another day. So don’t revenge straight guys. That’s the third thing.
Patience
Fourth and final thing, guys. The fourth and final thing that I want to share with you as to why people lose money is that they are impatient.
Patience is so key. This may sound like something small, but patience is half the battle when it comes to trading. Okay. Obviously having a solid strategy is something you need along with other intrinsic factors. But patience is so critical. Guys. There’s a F there’s a Stan trading world. Probably heard it. What the inpatient trader pays, who the patient trader. So, cause you know, you’re running in reckless. You’re going to lose trades. Okay. When you’re not, when you want to get in the trade just to trade, like you’re itching. Like I need to trade right. Then that’s going to typically lead to a situation to where you’re going to lose money because you’re impatient. You, you, you may have your strategy set up and you see, you’re like, Ooh, look like this may be a good entry, but you’re not a hundred percent sure. But you still take it because you just feel like you got a trade that typically leads to not a good situation.
You’re going to have times where there might be days, okay. That you don’t trade might even be weeks. You don’t trade based on what you see, but you have to have confidence in your analysis and your markups and the way, uh, that you see the charts. And here’s a way I feel if I have a move sometimes where I feel like I’m not a hundred percent confident in it where my gut feeling is saying, oh, I should wait for a little more consolidation on that before I get in. Versus like, man, this is concise. I think that’s a decent amount of consolidation is going up. It’s going up. Okay. Now’s the time for me to get ready to pull the trigger. Although your original train of thought, all of your, your mindset to say, this is not the way I want it yet. That’s conducive to what I’m looking for.
These are my guidelines. These are my rules. If you start breaking your own rules, being a patient, because it’s going to happen, you’re going to lose traits. So those are four reasons. Guys. Those are four reasons why people absolutely lose money when it comes to Forex. These are simple things, right? These are things right in front of our face. These are the things that we’re committing. But more importantly, these are the things that we can control and change. Listen, guys, I gave you four reasons why people lose money. I actually have three more to share with you. And then on the flip side of that, guys, I have seven reasons to help you make money. The things you should be doing when you’re trading. So I have a cheat sheet for you all. It’s called the 14 four regs do’s and don’ts where I talk about seven things you shouldn’t be doing.
I talked about four of them here today, and I talk about seven things you be doing to ensure your success in the markets. Now, guys, if you want to pick that up, you can definitely head over to my blog@eddielharvey.com or guys, if you just simply click the link below here in the video@eoharvey.com slash 180 1, this is going to take you right to the blog post. Okay? You you’re probably, you know, possibly watching this video on my blog. If you do, you’re going to see a banner right beneath this video that you can click on. And it’s going to take you to be able to get that cheat sheet, be able to download that right away. All right, guys. So there you have it. I hope you all received some value from this video. I told you also I have a group man on, on Facebook where I give an under the hood look at the platform.
I’m a part of, if you want access to that group, simply go to http://fb.tradewithed.com So if you’re looking for guidance, instruction, mentorship, training strategies, all of that in one place, our platform gives it to you. If you want a sneak peek at what we’re about and who we are and what we do, go ahead and go over to http://fb.tradewithed.com and you’ll be able to find out more.
Go ahead, guys, get out there, do your best, put your best foot forward. Guys, stop losing money. Do the things that’s going to help you make money and let’s crush. It. Let’s have a phenomenal day. Week, year of life in the market is bad for us because a beautiful thing. Once you learn it and understand it and put yourself in a position to be a student of it and take it serious. Yes. So thank you for your time guys. I will talk to you all later. Take care.
