Inadequate risk management is a major reason why Forex traders lose money so easily. Trading platforms are equipped with automated systems for take-profit and stop-loss. Mastering them will increase a merchant's chances of profitability. Not only should traders be aware that these processes work, but also how to better execute them based on the level of market uncertainty expected for the time and duration of the exchange. Keep in mind that what might have been a lucrative place could be liquidated by a 'stop-loss to low'. In the meantime, a 'take-profit to high' could not be achieved due to a lack of uncertainty. Paying attention to risk/reward ratios is therefore essential to effective risk assessment.

Forex traders fail for a number of reasons. One reason is overconfidence, which can be caused by the success they've had in other aspects of their life. You may have been a great athlete or a fantastic student, but forex trading doesn't work the same way as those things do. It's a real job with a lot of time and effort involved, and it takes hard work to be successful.

There could be various reasons. But I believe the main ones are:
- Not devoting some time 'training' on a demo account.
- Allowing emotions to control their reasoning and this leads to lack of proper judgement.
- Lack of a proper plan to have good risk management.
- Thinking trading is a game, rather than see it as a serious activity that requires time, patience and planning.