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Why 95% Of All Traders Fail

  • #61
  • Apr 28, 2012 6:53am Apr 28, 2012 6:53am
Yes its true its hard to start. But at the end you walk over thorns to reach the stars. It is worth the effort. When you reacht the rutine trading its is quite easy. Perception is the key to success after 10 years i have reached the level when i am confident so much i dont even need the stops. If you get inside the head of banks you will see it all very clearly. Read the charts its all there no need for indicators. The truth is in the charts up and down and down and up following this pattern for 94% of the time. It is repeating over and over again.
  • #62
  • Apr 28, 2012 7:13am Apr 28, 2012 7:13am
Quoting dove_alliance
It is very interesting in all the reasons each trader had come up with on failure - but no-one had really hit the true reason why 95% of traders fail.

All the reasons stated above is known as "baggage" in which everyone carries to one extent or another - and in time - the baggage can be dissolved once one had recognized their own baggage. So lets talk about the true reason why everyone fails and that is wisdom and knowledge.

Wisdom and knowledge of the "Primary Source" that makes this market what it is and that is "Support" and "Resistance"....

Hi Dove,

Very well you said and this is unfortunately the cruel truth.
Too bad not all have the chance to learn the basics from the best, from the 5%.
Like you said, in "this market is about balance just like in life".

God bless you,

Folio
  • #63
  • Apr 29, 2012 12:46am Apr 29, 2012 12:46am
Quoting dove_alliance
It is very interesting in all the reasons each trader had come up with on failure - but no-one had really hit the true reason why 95% of traders fail.

All the reasons stated above is known as "baggage" in which everyone carries to one extent or another - and in time - the baggage can be dissolved once one had recognized their own baggage. So lets talk about the true reason why everyone fails and that is wisdom and knowledge.

Wisdom and knowledge of the "Primary Source" that makes this market what it is and that is "Support" and "Resistance"....
Hi Sir,

It's good to see you here and I hope everything is well.
I am glad that you are came back.
Sir, how to get the right knowledge ?
Thank you,

Tusco
  • #64
  • May 1, 2012 5:48am May 1, 2012 5:48am
Yes it's true that it's very hard to start but if you don't stop educate your self and continue your hard work i think it's possible to reach that pot of gold
  • #65
  • May 1, 2012 4:35pm May 1, 2012 4:35pm
Quoting tusco
Hi Sir,

It's good to see you here and I hope everything is well.
I am glad that you are came back.
Sir, how to get the right knowledge ?
Thank you,

Tusco
There're quite a few free online resources that can help a newbie learn the ropes of this market..I would suggest starting there and moving ahead with a demo account.
  • #66
  • May 1, 2012 8:28pm May 1, 2012 8:28pm
Quoting dove_alliance
It is very interesting in all the reasons each trader had come up with on failure - but no-one had really hit the true reason why 95% of traders fail. ......
Superb post.

To any aspiring traders reading this - dove_alliance knows what he (or she) is talking about.
_____________

@tusco - for learning the basics, babypips school is arguably as good a starting point as any. There is also good info in PeterFM's thread.

Beyond the basics, some of the threads that I have found most helpful are: James16, no brainer trades, VSA, millipede and deadly accuracy. All contribute important ideas that can help you develop a robust trading methodology.
  • #67
  • May 2, 2012 8:51am May 2, 2012 8:51am
Hi Forexnuts, Hi hanover,
Sirs,

Thank you for the direction provided, appreciate it!
Obviously they will take into consideration.
I thank God that there are people who think and want help beginers.
Once again thank you gentlemen,
God bless you,

Tusco
  • #68
  • May 2, 2012 1:16pm May 2, 2012 1:16pm
I completely agree with everyone saying to start with Demo account, I am new only been trading 3 weeks or so and i was using real money instead of a demo I would have stopped after the first couple of days. learning to read indicators is also a major factor, you cannot seem to get enough information about trading and it all helps..

I look forward to continue trading and being a part the Forex Factory!
  • #69
  • May 2, 2012 9:34pm May 2, 2012 9:34pm
.

Successful traders normally have daily report/charts from a few different sources.

www.fxcharts.com.au is free and will help the newbies understand the interpretation of charts as well as a market run down.

I think he has a twitter update as well during the day for some major moves.

Know your market is the key to any successful investment.

Good luck troops
  • #70
  • May 3, 2012 2:08pm May 3, 2012 2:08pm
Sadly I must concede to failure at trading and become one of the 95%. I started out in this endeavour 3 years ago. Full of confidence and riding off my success with trading stocks I quit my job to persue trading full time 2 years ago.

I quickly discovered indicators were useless early on, so moved on to naked charts then spent the past year on 'supply and demand' thinking I finally had what I needed.

I have poured every last waking hour into it, blood sweat and tears and tens of tousands of pounds. I have blown account after account, tried numerous 'trading rooms' and 'mentors', every single one of them dissapoints. Now I know why there are so many businesses and individuals out there teaching trading, because they make no money from trading...those who can't, teach.

I'm off to start my new career as a trading mentor
  • #71
  • May 11, 2012 3:34pm May 11, 2012 3:34pm
Hi Tusco,
Glad to have been of some help and yes, it will be a while before any new trader can start making profit regularly..but with practice and patience, you should get there. Happy trading!
  • #72
  • May 11, 2012 8:29pm May 11, 2012 8:29pm
Hey all,

Well I put in my first demo trade and based it off Elliot Wave and Fibbinacci and such. I just goofed around and thought I'd try my luck.

The order was a pending order with a T/P and stop loss.

I won the trade, but I'm a bit sceptical:

If you see the candle wick below, you will notice that it came within a few pips of enabling me to win. Is it possible the broker knew I was on a demo and pushed up the price to trigger my T/P?
Attached Image (click to enlarge)
Click to Enlarge Name: 5-11-2012 8-32-52 PM.png Size: 109 KB
  • #73
  • Edited May 13, 2012 1:15am May 12, 2012 12:55pm | Edited May 13, 2012 1:15am
I just recently started play at Forex. And I have already figured out that we need to follow its strategy. No one will give us a good experts, that it to be profitable at 100%. I created two strategies, which getting profit at 50-75%. Also I modified one completed strategy to fit own needs.

P.S: Ignore my bad English. I'm learning it!
  • #74
  • May 13, 2012 4:32pm May 13, 2012 4:32pm
Quoting mikedavid00
Hey all,

Well I put in my first demo trade and based it off Elliot Wave and Fibbinacci and such. I just goofed around and thought I'd try my luck.

The order was a pending order with a T/P and stop loss.

I won the trade, but I'm a bit sceptical:

If you see the candle wick below, you will notice that it came within a few pips of enabling me to win. Is it possible the broker knew I was on a demo and pushed up the price to trigger my T/P?
Sorry..but got to ask, why would a broker do that..that is create profit for a retail trader? I'm yet to come across one who's happy to hand $$$ to me..

But yes, some demo accounts tend to vary from the live ones and on price manipulation [search the other threads on same/similar topics in the forum]
  • #75
  • May 13, 2012 8:15pm May 13, 2012 8:15pm
Quoting Forexnuts
Sorry..but got to ask, why would a broker do that..that is create profit for a retail trader? I'm yet to come across one who's happy to hand $$$ to me..

But yes, some demo accounts tend to vary from the live ones and on price manipulation [search the other threads on same/similar topics in the forum]
I was just wondering that maybe because it's is a demo account, they are trying to make me win so I will sign up for a real account.

Everyone says that demo accounts are only good for practicing strategy or testing connection problems, but you will not be able to test slippage, requotes, etc.

I double checked and it just looked like I got very lucky.
  • #76
  • May 15, 2012 7:09am May 15, 2012 7:09am
Quoting mikedavid00
I was just wondering that maybe because it's is a demo account, they are trying to make me win so I will sign up for a real account.

Everyone says that demo accounts are only good for practicing strategy or testing connection problems, but you will not be able to test slippage, requotes, etc.

I double checked and it just looked like I got very lucky.
Yes, some broker demo accounts look very different from the live account version. But even if they do rig up the demo, you have to remember that there are lots of brokers out there who offer good demo packages.
So, let's assume that your broker did rig up the demo to make you win every trade so that you'll open a live account and crash and burn. Here's the problem with that scenario, if the demo account and live accounts differ, I'm out of there, even if it means losing my first live trade [which will be small] and move on to a better broker.

So, at the end of the day, to protect yourself, keep a shortlist of brokers with great demo account packages. Register and try them out, for a specific period of time. Do a online search for any negative info on these brokers, find out if the issues have been addressed..and so on. And importantly, ensure that your first live account is a mini/micro, so you stand to lose very little..
Hope that helps..
  • #77
  • May 15, 2012 10:15pm May 15, 2012 10:15pm
Quoting mikedavid00
Hey all,

Well I put in my first demo trade and based it off Elliot Wave and Fibbinacci and such. I just goofed around and thought I'd try my luck.

The order was a pending order with a T/P and stop loss.

I won the trade, but I'm a bit sceptical:

If you see the candle wick below, you will notice that it came within a few pips of enabling me to win. Is it possible the broker knew I was on a demo and pushed up the price to trigger my T/P?
Hi,

I'd guess it's most unlikely, for at least 4 reasons:

1. Why would the br0ker pick on you specifically, when he has thousands of other client traders? What if some of those other traders were selling AUDJPY, with their SLs at around the same level as your TP? Then by 'spiking' you out for a win, he would have been spiking them out for a loss.

2. If a br0ker wanted to gain money by dubious means, why spend his time targeting clients in demo, when he has no way of knowing which of them will ever get around to opening a live account? Why not focus his energies on 'cheating' the biggest live accounts, to maximize his gains?

3. Many MT4 br0kers are STP (straight-thru-processing) — there's a good explanation half way down this page. That means that they take on no risk themselves, as they simply pass your order (if it was real $$$) up to the next br0ker in the hierarchy, and pocket a guaranteed slice of the spread for their efforts. Gaining money without risk means that there's no real incentive for them to cheat their clients. Especially as there are more than 200 other MT4 br0kers that you could potentially move your business to, if you were unhappy with the 'service' being provided. In other words, fierce competition helps to ensure a level playing field.

4. Looks very much like the candle you're referring to was the one starting at 14:30 GMT on May 11. Pepperstone's high for this candle is 80.577, which would also have triggered your profit target. Hence we have independent confirmation from a different br0ker.

David
  • #78
  • Edited 8:03am Sep 5, 2016 7:26am | Edited 8:03am
I hope that FF can give me unlimited access to edit this post, I am writing a new series of post on why traders fail: "WTF"
... stay tuned... I have done or will hope not to do these mistakes, these are just sound advises..

1) We do not have discipline, we create a plan to trade, that's good. But:
1.1) Keeping to the plan after entering the trade is quite a challenge, the longer you are in the trade, the more prone you are changing your initial plan.
1.2) Keeping to the same plan over and over again is also difficult. If you have executed Plan A over and over again, closing trade after trade in profit or in loss, you will get tired of it over the long run. You will suddenly trade Plan X and Y and that is when you lose all your money.

2) Over-leveraging:
2.1) We might over-leverage because of mindset. We have a mindset of getting rich quick, we really want to turn $100 to $1000 overnight, we really believe we can do it so when trade turns against us, we quickly lose our money.
2.2) We might over-leverage because of revenge, we lost trades over and over again, so we need to re-gain all that losses, so we risk more to gain more, and again, when our trade goes against us, we lose our money faster than expected.

3) Instant gratification:
If we are always right in trading, we might not have this problem, but the thing about trading, you can never be 100% correct, so you are bound to have losing trades. When you have too much of losses, you want to just be right at least once or a bit. So when our trades gets a little bit into profit, we will close it. As such, the profit will be a little bit. We do not do the same with losing trades, we try to wait it out, hoping that price will come back, or giving the trade "some room" before it will move in your direction. Over time, the losses will overcome the tiny profits and we will again lose our money.

4) Impatient:
It is good to trade according to what we see but we need to have a confirmation. Sometimes we see an seemingly obvious and outrageous big down candle and we jump in a SELL trade, we did not wait for any sort of confirmation like candle close. As such when we enter we are caught at the extreme low point and before the candle closes, it reverse and creates a obvious and outrageously big UP candle. We know we are doomed. We never expected nor could imagine it can ever be a UP candle, our eyes and impatience deceived us.
bit . ly/fantestimonials
  • #79
  • Sep 26, 2016 7:44am Sep 26, 2016 7:44am
Personally, I believe that the major key to success is how effectively a trader goes about handling uncertainty, both methodologically and emotionally
  • #80
  • Oct 4, 2016 1:25pm Oct 4, 2016 1:25pm
Why do traders fail?

If they are blaming anyone/thing other than themselves then they are in the wrong business.

Traders fail because of themselves, not one other factor plays a role in that. You either trade smart or you don't. The ones that don't, fail.

It's that simple.
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