The Most Obvious Reasons Why Traders Lose at Forex Trading
Scalping – new traders can’t resist the allure of quick profits and tiny risk; the spread cost makes this strategy an almost certain loser.
Hedging – new traders love the idea of postponing a loss; the downside is the loss never goes away and the spread cost doubles.
Martingale – keep adding to a losing position until it “comes back” a little; but when it doesn’t “come back” soon enough you lose everything.
Wrong broker or spread bettor – new traders can’t resist “cash bonuses” and “tiny spreads”; getting their money out once they put it in is the issue.
Underestimation of just how difficult it is to trade profitably over an extended period of time