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yes they do

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Yes.It is due to lack of proper trading mindset. As per estimates 90% of the people lose money on the forex market.

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Because their account is under-capitalized, or because they open too many trades in relation to their market size?"

The answer is BOTH. People open an account with insufficient capital and don't use proper risk management so they usually end up blowing their account.

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I would say most people loose money because they open too many trades for their account to support(under-capitalize).They may have open too many trades because they want to make more money(greed) and in the end when the trade turn against them their fear makes them not close the trade and take the loss but they continue trading until they get a margin call which closes all their trade immediately hence making them loose more.

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I think most people lose money in the Forex market because most people cannot control the emotion and cannot follow trading rules.

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The majority or 95% are actually trading vs the big players so if one is a newbie without a proven system and does not follow money management, he will likely be eaten up.

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Yes, only 5% are making money.

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yes