A key addition would be lack of a trading plan. Many traders fail because they enter the market without a clear strategy, relying on impulse or random decisions. Having a well-defined plan, including risk management, goals, and trade criteria, is essential for consistent success in Forex trading.
Unfavorable trading conditions of the broker, large spreads, slow execution, frequent requotes and slippage can also lead to losses in forex. Therefore, it is also important to choose a broker that has been working in the market for a long time, providing favorable trading conditions and has proven its reliability. I liked the conditions in fxopen, which has been providing its services for more than 15 years.
In addition to the five reasons mentioned, another key factor in trader failure is emotional decision-making. Impulsive trading driven by fear or greed often leads to poor outcomes. Maintaining discipline, sticking to a plan, and controlling emotions are essential for long-term success in forex trading.
You're right; unfavorable trading conditions such as large spreads, slow execution, and slippage can lead to losses. It's crucial to choose a broker with a solid reputation for providing fair and reliable trading conditions. A long-standing broker with a proven track record can help mitigate these risks and improve your trading experience.
Some traders also prefer to trade on important fundamental news when there is strong and sharp volatility in the market. They want to make quick and big money on it. But the release of such news can break any strategy signals and indicator readings when the price can sharply and far go against your order, ensuring a big loss.