Why Forex Traders Lose Money?

It is a very major question that is often raised by the people that are thinking about joining the business but have feared that they will suffer the loss or the people who already started many also ask this that why many people faces the loss of money in Currency trading instead of making profits for themselves like it was claimed before starting the business.  If we see the Statistics we find out that almost 90% of the people that investments their money in forex  trading loses their money and quits this business in the end in the loss however it is also true that some of the people are making huge income from this business. now let me discuss the reasons due to which many forex traders loses their money. their can be several different reasons for this but i will only be touching the main ones.

One of the reason for this can be that you started trading with a small capital.  many people thinks that its too easy to make money by currency trading and enters this business with some investment but it results in lose for them. mostly those people gets success that starts up with some good amount of investment of capital. at least you should be starting forex trading by investment of $1000.  Next major reason is not managing the risk of this business properly. as i said several times in past that this business is also risky like all other businesses. if you can manage the risk well you can be saved from lose of money otherwise there can be lot of loss.  Third major reason is the Greed of trying to make more money in whose try they even lose their main money because conditions of forex trading market keeps on changing time to time.  The Fourth and final reason can be the Scam trading company who takes your money and not provides its services to you. like other business there are many scam companies in forex trading as well. So bragging rights to save yourself from negative trade is very important for a person.