Forex Market: Why do traders lose money?

The fundamental question in the world of Forex is: Why do traders lose money? In this article we will explain.

Financial trading in Forex has become something that many treat lightly, but very few actually master it.

When they start, most beginning „traders“ have many stumbles on their way in the Forex market. And while it seems that one player is to blame for everything, you can’t always blame „market fluctuations“.

Kiana Dianal tries to answer why traders lose money

The golden question for those who want to enter the world of Forex market is: how to become a good trader and not lose money?

Kiana Dianal is the CEO of Invest Diva, a financial expert who writes for Nasdaq, and

In her three books on crypto-currencies and the Forex market, she tries to guide beginners who decide to enter the forex market, guiding their steps based on her years of experience.

Kiana, the world’s leading Forex conference, „Trading Mastery Summit“, held in Madrid in 2016, explained to observers of her presentation what she identified as the problems of „beginner traders“.

She mentioned the risk factors that she considered to influence trading. There are 11 risk factors that stalk traders, but they can be summarized in the 4 main ones.

Kiana Dianal

The Trading Mastery Summit is coming up
Risk Factors for Beginners
The first of these factors, according to Kiana, is that beginners consider it a scheme to become a quick millionaire. When the reality is much deeper than that simple assumption.

The reality is that it’s a gradual process. Something like a Bitcoin Lifestyle machine to manage your wealth. It needs to be finely tuned and to be aware of every element that makes it up. And beginning traders lose money by not understanding this.

This first factor allows for the existence of the second. The emotional charge is also part of the mistake, as too much mind is put into it, and emotions interfere and complicate trading.

For, when observing a rise, beginners rush to sell off all their assets, losing large amounts when a fall begins quickly.

The third is a basic thing to learn, and that is to trust the data. Some beginners bet everything when they hear that a relevant market currency has fallen and rush to trade as soon as possible, losing a lot of money for not analyzing well.

A perfect balance between technical and fundamental analysis is necessary, explains Kiana.

The fourth is a lack of financial education. That’s why it’s important to analyze the market from several approaches: technical, fundamental, evaluate the market sentiment, evaluate with your own criteria the Forex market environment. And always keep a clear mind, she emphasizes in her talk.

The importance of knowing your finances

It is also important to consider your financial situation when deciding to invest in the Forex market. Your positive performance when trading in the Forex market will depend on it. This is based on the analysis of capital.

Much of the spending we do is connected to an emotional charge, so it is important to ask yourself, why is it being spent? And what is it spent for? The constant answer is: to make money.

But making money is not simple, and that is the common mistake. It depends on a well-organized scheme, well-planned goals. Where do I want to go? What do I want to do?

A financial plan is Kiana’s primary solution.

When do you need a financial plan in your life? she asked at the conference, and although the doubts among the audience were present, and you probably have the same question, the answer is simple: Right now.

As you read this article, when you read a book, even when you’re at work. A financial plan is the initial and fundamental step for your life, and even more so if you want to venture into the Forex market.