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Why 99% of traders lose money

  • #221
  • Oct 7, 2019 1:26am Oct 7, 2019 1:26am
that depends on how you see lose
  • #222
  • Oct 7, 2019 2:44pm Oct 7, 2019 2:44pm
Quoting Jeremy88
{quote} Yeah, I'd rather say that trading is very similar to a sport. You must be very good in trading to winning. This is well illustrated at this picture: {image}
Heh, yeah.. or in business... But that is part of the game.. It is worth because of that.. because we know what the win-rate is... That makes the winners... HEROES...
I mean there are many "games" in life when almost everybody wins... not much excitement for people... Similar to how few value free things...

In fact... I compare it to RAP industry... when those that do make it are... RICH af... others keep tryin in the basement... Or in actors... which are either broke, getting paycheck to paycheck... or are world famous Or how some guys summed up... either we know them or they are waiters: )

You know what's a cool comparison... Dancers... I find this clip very true... Almost no second tier... Yeah some go into "teaching", "consulting" etc... But we know what we are talking about... In REAL trading you either make it or you don't, longterm... At least in my experience... Luck cancels out eventually...
Inserted Video


I mean.. that is why some people don't understand that with OVERALL picture.. some traditional hard careers.. are much easier...
Because even if you don't make it (to the top)... you are still above average... Yeah, one can argue.... But just compare effort/risk of an average trader...
the time he invested... That is why I say trading is one of the hardest jobs... Because you can spent enormous amounts of money, time.. with zero guarantees...
BTW that is why some personalities do not even dare to try... they do not understand the concept "And we make a lot money if we get it right. And we get left by the side of the side of the road if we get it wrong." (Margin Call, 2011)


"But, hey, if we wanted to be in the "easy" business, we'd have gone to med school." Billions (2016)
Read more: https://www.springfieldspringfield.c...episode=s03e10
Can you afford to take that chance?
  • #223
  • Oct 8, 2019 2:03pm Oct 8, 2019 2:03pm
its a very good summary , thanks for your nice post.
  • #224
  • Oct 9, 2019 5:49am Oct 9, 2019 5:49am
Quoting auricforecas
{quote} Heh, yeah.. or in business... But that is part of the game.. It is worth because of that.. because we know what the win-rate is... That makes the winners... HEROES... I mean there are many "games" in life when almost everybody wins... not much excitement for people... Similar to how few value free things…
Good comparison. There are also more such examples. The most important thought in your considerations it is that in financial market trading are only winners and losers. Either you are rich or poor. There are no middle class.
  • #225
  • Oct 9, 2019 7:04am Oct 9, 2019 7:04am
Letting losers run and cutting winners short is only a rationalization of one of the problems easily spotted I think. There is a deeper process worth going into which is the psychology, if they are irrational about simple things like running loss isn't a loss yet! they are about other facts. People trick themselves all the time, the brain has defense mechanisms to suffer less. The problem is hiding the head like an ostrich doesn't make the situation up there any different but hey, tell the subconscious brain that.
  • #226
  • Oct 29, 2019 11:41am Oct 29, 2019 11:41am
Quoting Godblesslzl
that depends on how you see lose
True; basically which traders try to avoid the lose completely (which is impossible)! They mainly lose their momentum too early!
  • #227
  • Edited 4:33pm Oct 29, 2019 2:25pm | Edited 4:33pm
Some good points guys. Definitely your biggest enemy in this game is not your broker, the market or the banks. It's YOU
  • #228
  • Nov 1, 2019 3:13am Nov 1, 2019 3:13am
Its only because traders lack in putting unconditional effort. They lose because of themselves only.
  • #229
  • Nov 2, 2019 6:48pm Nov 2, 2019 6:48pm
No risk management and greed
Turn your wounds into wisdom
  • #230
  • Nov 3, 2019 5:20am Nov 3, 2019 5:20am
And the big one of course is FOL "fear of loss" - It translates to closing what could be a very big winning trade way too early. I should know because I've done it so many times in the past!

Of course one never wants to let a winning trade turn into a losing trade but bringing up one's SL until BE is a far better way of controlling the situation. If your SL gets taken out it's hard luck but you've lost nothing. Eventually you'll latch on to a really strong move and youir SL will remain intact and maybe you move your SL in into the green a bit and eventually reap the full reward.

Also a better technical understanding of what is going on when one catches a good move is vital. Everyone knows about ATR on daily candles but few take note a do a full study of ATR of candles on the lower time frames. And that is often the key to calculating how far a move is going to go and thus how long to keep one's trade open.

Some food for thought!
  • #231
  • Nov 6, 2019 6:30pm Nov 6, 2019 6:30pm
Quoting HeyYou
because >99% of people make huge deposits during the learning process.
This is spot on!

They were probably overwhelmed with what they've learned so they give it their all which is not advisable.
  • #232
  • Nov 16, 2019 8:52am Nov 16, 2019 8:52am
The 10 min talk every new trader needs to hear

Mainly on stocks but applies to forex !!

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  • #233
  • Nov 16, 2019 9:44am Nov 16, 2019 9:44am
Not 99% of traders lose, here I don't agree. But really, a significant part is losing, I would say that more than half, even 70-75%. Just because people do not share positive experiences, it creates the backdrop that most people lose money.

I have been thinking about this phenomenon for a long time, because trading gives great prospects, but many really lose. I think I found the answer. It consists of several elements, which are the fact that markets are changing greatly. But most traders, alas, are rather conservative and do not keep up with the market.

People do not learn new things and once they win, they continue to act in the same way, hoping to repeat success. But the truth is that for successful Forex trading, you need to change quickly and have a "moving mind".

The second reason, lack of information, when beginners think that everyone knows and are not looking for information, do not read the news, do not conduct analytics.

The third is large deposits, people who trade on a demo account often make too large a deposit and lose money without having enough experience and succumbing to speculative expectations.
  • #234
  • Nov 16, 2019 11:16am Nov 16, 2019 11:16am
Quoting Infassen
Not 99% of traders lose, here I don't agree. But really, a significant part is losing, I would say that more than half, even 70-75%. Just because people do not share positive experiences, it creates the backdrop that most people lose money. I have been thinking about this phenomenon for a long time, because trading gives great prospects, but many really lose. I think I found the answer. It consists of several elements, which are the fact that markets are changing greatly. But most traders, alas, are rather conservative and do not keep up with the...
In some points i am by you, but some i see different and i post it earlier.
In the Top 100 are ...
1. FEAR
2. Never build the own view on the market, copy pasta trading styles and do not get it, but to lazy to drop it.
3. Intense use of indicators. All of them are garbage! No one is great.
4. False placing SL or more dangerous never use it.
5. Dream of account growing, but many trouble with place 1 - 4
6. Do not want work something out, think profit can build with "happy sunshine - i let work or a little if is needed" - behaviour.
7. Risk management and thoughts on it came short before margin call, but often too late.
8. Pick to less postion size, because fear and no really result is visible, or bomb the account within one day.
...
Perfection is the enemy of good enough!
  • #235
  • Nov 16, 2019 12:55pm Nov 16, 2019 12:55pm
Yes some good points but I will add something else which I believe is a key or even vital ingredient in achieving success. One point made by all the experts is this: know when to trade and know when NOT to trade. Using a higher time frame chart can help to identify these good and bad times. When that opportunity comes along one has to milk that trade to the full so that one has taken full advantage of the opportunity. It is not easy but you need 2 or 3 big trades in a month rather then try to "accrue" pips by trading numerous times which is a recipe for disaster because one is then attempting to trade at times when you need to stay right out of the market.

As an example I have attached a GBPUSD chart. If one is using a good technical system, it's fairly easy to see that this week there were NO trading opportunities because the market was ranging whereas the week before there were 3 or 4 great ones during that sell off. If you got in and made some bucks then great if not, PATIENCE is required until the market offers a new opportunity - late yesterday one appeared because a new uptrend looks likely and more then likely more buying opportunities should appear next week on this pair.
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD.rH4.png Size: 56 KB
  • #236
  • Edited 4:37am Nov 17, 2019 4:07am | Edited 4:37am
Quoting Mtinifx
Yes some good points but I will add something else which I believe is a key or even vital ingredient in achieving success. One point made by all the experts is this: know when to trade and know when NOT to trade. Using a higher time frame chart can help to identify these good and bad times. When that opportunity comes along one has to milk that trade to the full so that one has taken full advantage of the opportunity. It is not easy but you need 2 or 3 big trades in a month rather then try to "accrue" pips by trading numerous times which is a recipe...
All nice with 2 - 3 trades the month, but in many cases the start is not with huge capital. So many must trade more frequently , not only because of the fact. It is also something with personal structure, some can not wait so long, some want build enough training. With a few trades in the month have can build it not in the way as doing more trades in the same period. You also point the myth around switching to larger timeframe. It holds so strong as this is false. Every timeframe can trade by its own. You must have huge patience trading m1 and i see no difference if you wait months. Patience is in both requiered.

Someone who have make 1000 profit from huge account trading your 3 trades can not compare with someone who have in the same time double the account, make 1000 profit only because trade more often. If the target for both are the 1000, the big pocket trader can more calm, pick less trades for same profit as the other one who must more active. Means not that the trades taken by the big trader are more seriously, only because operating in higher timeframe.

Attached Image (click to enlarge)
Click to Enlarge Name: bccea043-bd8b-4a1c-8002-62425268aea7.png Size: 359 KB


Candles and blank spaces you see also in the minute chart .
Perfection is the enemy of good enough!
  • #237
  • Nov 17, 2019 1:28pm Nov 17, 2019 1:28pm
Quoting MichaelSch
{quote} All nice with 2 - 3 trades the month, but in many cases the start is not with huge capital. So many must trade more frequently , not only because of the fact. It is also something with personal structure, some can not wait so long, some want build enough training. With a few trades in the month have can build it not in the way as doing more trades in the same period. You also point the myth around switching to larger timeframe. It holds so strong as this is false. Every timeframe can trade by its own. You must have huge patience trading...
Sorry I meant 2-3 trades a week not in a month. However what you're losing sight of is the fact that the market is not some automated unfeeling robot but it's made up of humans who are working in the major banks and large institutions who trade what we call "the smart money". And they are out to make money at your expense! Yes most of the time during the trading month is spent by them gunning smaller players in an attempt to build liquidity for the next major move up or down which often doesn't last that long. These liquidity building periods are called accumulation or distribution phases. The market during those periods moves in wild and totally unpredictable ways. Small traders are losing money big time during these periods and this is probably the major reason why so many many are failing - about 95 - 99% of them. Yes, they are trading lower time frames where it is absolutely impossible to take a proper view of what is happening in the market. So the "myth" is actually that small traders can succeed over the long term constantly trying to scalp 5 - 8 pips out of the market. The market will eat you for breakfast my friend I am very sorry to say. I know that from hard experience over many years of forex trading.
And nonsense to say that one needs a big account balance to trade less often. Rather, one needs a big account balance to trade more often! A big balance to cover all the losses you are going to have simply because the more often one trades, the greater is your risk exponentially.
  • #238
  • Edited 2:07pm Nov 17, 2019 1:56pm | Edited 2:07pm
Quoting Mtinifx
{quote} Sorry I meant 2-3 trades a week not in a month. However what you're losing sight of is the fact that the market is not some automated unfeeling robot but it's made up of humans who are working in the major banks and large institutions who trade what we call "the smart money". And they are out to make money at your expense! Yes most of the time during the trading month is spent by them gunning smaller players in an attempt to build liquidity for the next major move up or down which often doesn't last that long. These liquidity building periods...
I also trade now some years and can not regnoize the effort trade higher timeframe. This is false and rookie jump to fast to the myths around. Less trading activity is not what you will secure for margin call. If i somtimes drive my car means not that i can have with my next trip a massive damage. Only if i skip driving my car, other things can happen for sure. If fear is the point not going to trade frequently, better break with trading. Sorry i must take my opinion to these crap, nonsense as you said.

Found you aswell trade m5. Was it a mistake? Here the link to your post in another forum you post about scalping.
https://www.forexfactory.com/showthr...8#post12612358
Perfection is the enemy of good enough!
  • #239
  • Nov 18, 2019 5:45am Nov 18, 2019 5:45am
Quoting MichaelSch
{quote} I also trade now some years and can not regnoize the effort trade higher timeframe. This is false and rookie jump to fast to the myths around. Less trading activity is not what you will secure for margin call. If i somtimes drive my car means not that i can have with my next trip a massive damage. Only if i skip driving my car, other things can happen for sure. If fear is the point not going to trade frequently, better break with trading. Sorry i must take my opinion to these crap, nonsense as you said. Found you aswell trade m5. Was it...
Shall I say what the biggest problem with most traders big and small? Arrogance and pride!! Yes like this character who insists that his way is best but offers NO proof of it! Yes it is VITAL able to adjust and learn and put into practice what we are learning from pros who know what they are doing and what they are talking about. I've been trading for many years and I've seen so many traders come and go. Why? Because they are too arrogant and proud to change their losing ways! No one can tell me that scalping numerous trades on M1 or M5 is a winning formula. Just because I posted an M5 chart doesn't mean that I'm am watching and using M5 to look for trading opportunities! Rather check this post my friend: https://www.forexfactory.com/showthr...6#post12616276 Once you've done that, watch this video below and LEARN and do not tell me I'm talking nonsense - then you might as well tell the pros that they are talking nonsense too!!

Inserted Video
  • #240
  • Nov 18, 2019 5:54am Nov 18, 2019 5:54am
For some reason this idiot started ignoring me - the feeling is mutual. Trolls are not welcome on any thread IMHO
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