Whatever the eternal truth is in learning))
over complication is the main reason markets arent complicated people make them complicated
My apology to quote this to make my point. and its my personal opinion.
I think 90% of traders fail because can't control their emotion, not discipline with money management.
Cut your "Stop losses "
Give your "Take profit" gain gain gain it more than you can
Money management - Yes, it's true - it can be in your trading system.
Why 90% traders fail?
Because Forex is not easy & to be successful, you have to pass the following stages successfully.
Stage1: Learn Forex, Practice Forex, Find a strategy & Follow it with discipline
Just to understand it better, let's assume we have 100 new traders who wants to try Forex for various reasons. Now the first three parts; Learning, Practicing and Finding a profitable (& suitable) strategy for you can be easy as lots of forex resources available (online, forums, books & mentors) BUT is still very time consuming tasks. And among those 100 traders, there are people from different backgrounds, some work full time, some study full time, some have a running business, etc and it's really hard to spare the time needed for these tasks. If they pass these tasks, then the hardest part is very difficult to pass; that is, to Follow your strategy with Discipline. How many of the 100 traders, do you think, will finally pass the First stage successfully? For educational purpose only, let's assume (50% success rate, 50 passed out of 100)
Stage2: Enough Funds to support your Equity.
Lack of funds is what fails most of the traders in this game. And by Enough Funds I donít mean $1,000 or $10,000 but itís in $100,000 plus digits. Because itís not realistic to have a small account size and expect making a living out of it. Thatís the mistake most traders make. And this is what makes them trade big lots that end up in margin calls. If a trader simply follows this rule of not risking more than 1 or 2% on any single trade, there is no way to blow the account anytime soon. Whatís the average account size of a new trader? $500-$2000? And what do you think would be a realistic expectation per month from this account? Only $10-50 (thatís still a lot). Is it worth it trading that hard for a month for just $50? Instead one can easily make much more than that in a single day by working even with minimum wage and no investment to risk. Let's assume 20% success rate here, so now we have only 10 traders left who successfully completed the first 2 stages.
Stage3: Finding an Honest Broker (10
This is a stage, which is totally out of a trader's control and here I totally agree with evertontradeís point of view that NEVER STOP BEING SCEPTICAL. Letís say all those remaining 10 traders are ready to go Live by investing their hard earned money with a broker. Some of those 10 traderís will fall pray into some bucket shops (brokers) and will face all the difficulties like (platform problems, spread widening, re quotes, SL hunting, withdrawal problems, etc etc.) and What are the chances of the remaining traders?
Never Stop Being Sceptical...
Letís say they are very good at implementing their strategy and are profitable, the question is For How Long? By going Live and by trading with a broker, they are actually revealing their strategy to a broker. Who is a broker? An entity that has 1000 times more Funds/Money that the trader. Why donít they (broker) just follow these profitable traderís trades, instead of earning only 2 pips spread from them? Why donít they (broker) just hire those few profitable traderís and let them trade for them in big digits? Is there any affect on a strategy when it reaches the masses? What if all or most of the traders use the same strategy?
Never Stop Being Sceptical...
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