Causes of losses on Forex.

When you read Forex trading ads, it seems so simple: buy low, sell high, and the profit is yours. And the more leverage you use, the more you earn.

But in reality, statistics show that only 5 out of 100 beginning traders make a profit, and according to my own statistics, even fewer.

So what are the reasons for losses in Forex? Why do some people make millions, while others lose their deposits on their first day of trading?

One can talk endlessly about extensive real-world trading experience and a vast store of knowledge, but as practice shows, the main reasons for losses in Forex are most often:

1. Lack of analysis – you launch the trader's terminal and conclude that the price is rising, and so on. As a result, instead of the main trend, you encounter a correction, and the trade closes with a loss.

2. Fear of pullbacks – the Forex trend moves against the main trend 70% of the time. You open a trade in the right direction, but the price suddenly reverses and starts moving against you. The trade closes with a loss, and the price moves back in the right direction. The cause of failure in this case lies in fear and impatience. To understand the dynamism of a trend, you need to evaluate its history.

3. Impulsive movements – as soon as you see a sharp price jump, you immediately want to open a trade in the same direction. But in most cases, such sharp price movements always end with equally significant pullbacks.

Therefore, you should never rush into a market; it's better to miss a trade and lose a potential profit than to incur losses.

4. Using Expert Advisors – surprisingly, trading robots often lead to the loss of the majority of deposits, due to the complete lack of control over such scripts. Therefore, if you decide to use automated advisors, at least don't leave them unattended.

5. Broker fraud – unfortunately, this also happens, especially if you trade amounts exceeding $1,000. Therefore, use reputable

dealing centers 6. Equipment failure – we all know that any equipment is prone to malfunction, including our computers and the software installed on them. In this case, using an additional trading terminal and setting a stop-loss will help avoid significant losses.

a trend reversal or other unexpected event can also occur