Well the simple answer is if ALL people are losing money than all you have to do is the opposite of whatever they are doing. If they buy....you sell. If they sell....you buy.
In reality ALL people do not lose money at Forex. I will however agree that MOST people lose money at Forex. I also have a feeling that MOST people lose money in options, futures and the stock market as well. The real problems are human nature and human emeotions.
The reason people lose money is because often they have not been trained to make money bytrading currency. Without a specific trading plan and the discipline to stick to a plan you have no chance to succeed in Forex. Most people are controlled by fear and greed. How many times have you stayed in a trade too long because you were greedy and wanted more only to see the trade move further against you. How many times have you gotten out of a trade too soon because you were afraid that it woul move against you but as soon as you got out the market continued to generate profits that should have been yours.
You need to create your own trading system and have the discipline to follow it through everytime, with your stop loss in place. Test your system, test and test some more with a demo account. If you are satisfied with your demo performance, then you can start trading your system with a real account. Losing money will make anyone feel uneasy or guilty. But for beginner traders, huge losses make them feel particularly guilty, more so than other more experienced traders. For some, it goes back to growing up and being taught by our parents to save the hard-earned money for a rainy day. Losing the money almost equates to breaking a family tradition we’ve lived by our entire life.For short-term trading (the type of trading that many beginner traders are involved in), risking money is a necessity. And again, many believe this goes against how they were raised. Combine that with the ever-present pressures from family and friends when you tell them that you are becoming a trader or the “I-told-you-so” when you lose money, you’re almost set up from the started to feel guilty about what you’re doing.
