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5 Reasons Why Traders Lose

  • Post #1
  • Quote
  • First Post: Nov 25, 2013 6:35am Nov 25, 2013 6:35am
I got this from babypips i wanted to share with you guys, the num 5 reason i came up with, you can add to the list by posting a reply


Not having a proven trading methodology

Not understanding how the market works, key indicators, key numbers, and ideal times to trade.

Risking too much per trade.

Not being mentally prepared.

Just flat out lazy- dont wanna put in the work
dumbfounded - as if struck dumb with astonishment and surprise; "a forex trader stood dumbfounded by his denial of having seen his stop loss get trigger"; "the flabbergasted trader was speechless"; "was thunderstruck by this event

http://www.easyfreesmileys.com/smileys/lol-045.gif
6. Buy high, sell low.
Quoting BeginnerJoe
6. Buy high, sell low.
Greed, Greed, Greed, Greed and lots more GREED !!!!!!!
Short Euro and remaining that way. That's just the way it is !
Quoting NZ Chris
Greed, Greed, Greed, Greed and lots more GREED !!!!!!!
You forgot "fear"
Those who say it cannot be done should not interrupt those who are doing it
Quoting PipTrapper
{quote} You forgot "fear"
Fear usually stops people from taking trades. Given that on most trades, people's chances are probably already less than 50-50, that's not such a bad thing. Most people would be far better off if they never traded at all, therefore max fear would be a profitable situation for them.

However, greed gets people into more trades and at bigger positions than they would if they had more fear; I should know, I am greedy as f*ck and it does me no favours at all. I am pretty sure if I was more fearful and less greedy I would be a better trader.

Dreams of [insert favourite sports car of choice], big house in [insert location of choice] paid with CASH, no mortgage.

Yeah, greed is toxic.
I have no clue what I'm talking about.
Quoting Boy Wonder
{quote} Fear usually stops people from taking trades. Given that on most trades, people's chances are probably already less than 50-50, that's not such a bad thing. Most people would be far better off if they never traded at all, therefore max fear would be a profitable situation for them. However, greed gets people into more trades and at bigger positions than they would if they had more fear; I should know, I am greedy as f*ck and it does me no favours at all. I am pretty sure if I was more fearful and less greedy I would be a better trader. Dreams...
Okay sure, I agree that fear could be a good thing if it only caused traders to not trade, but it does have other implications.

Anyway, my point is that extreme greed and extreme fear are both killers and the ideal is somewhere on or near the fulcrum between the two.

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Those who say it cannot be done should not interrupt those who are doing it
  • Post #9
  • Quote
  • Edited 8:39am Nov 25, 2013 8:27am | Edited 8:39am
Quoting nz chris
greed, greed, greed, greed and lots more greed !!!!!!!

fear ...fear..fear...tooooooooo


Equation: GREED + FEAR= TEAR
EXTREME GREED + EXTREME FEAR = EXTREME TEAR
Say something meaningful or Silence!!
changing there stop loss lower or higher hoping it's goes there way
Quoting Kevingreene
changing there stop loss lower or higher hoping it's goes there way
100% CORRECT and averaging position/trade actually avg loss
Say something meaningful or Silence!!
Quoting classy
{quote} 100% CORRECT and averaging position/trade actually avg loss
Quoting PoundTrader
I got this from babypips i wanted to share with you guys, the num 5 reason i came up with, you can add to the list by posting a reply Not having a proven trading methodology Not understanding how the market works, key indicators, key numbers, and ideal times to trade. Risking too much per trade. Not being mentally prepared. Just flat out lazy- dont wanna put in the work

I am always reminded to be mentally prepared not just by failing but also for managing my winnings. There are a lot to consider I know. I maybe very new to trading, I have a lot of questions. But as far as reading long time traders ideas and infos. In time I can be there too.
Quoting Kevingreene
dumbfounded - as if struck dumb with astonishment and surprise; "a forex trader stood dumbfounded by his denial of having seen his stop loss get trigger"; "the flabbergasted trader was speechless"; "was thunderstruck by this event {image}
Quoting BeginnerJoe
6. Buy high, sell low.
Quoting Kevingreene
changing there stop loss lower or higher hoping it's goes there way
Quoting Kevingreene
changing there stop loss lower or higher hoping it's goes there way
I feel that this is more of a symptom of deeper issues rather than a problem with itself. What it boils down to is a lack of understanding of the limits of the system you are trading, and the kind of market condition you are trading in.

It might not be a wrong thing to move your SL or add to a loser if market conditions suggest that might be the right thing to do or if these are built into your system and you know the LIMITS of such processes. Cheers.

In other words, I think the primary technical reason for failure is the the lack of appreciation of context and that is not something that can be taught but only can be learnt through experience, screentime and lots and lots of failure; psychological reason will be fear/greed/inability to keep winnings/cut losses.

Edit: But hoping it goes your way always tend to be a bad mindset to have because it clouds judgment and makes you think that you might have an influence over the market or somehow the reason why you chose to take the trade will influence the market outcome. No. None of these things matter, the market moves wherever it wants to go and doesn't give a shit about whether you entered the position on a coin toss or on 10 indicators showing confluence or on 5 resistance levels stacked on top of each other.
Build good relationships with others.
Quoting shellsnail
{quote} I feel that this is more of a symptom of deeper issues rather than a problem with itself. What it boils down to is a lack of understanding of the limits of the system you are trading, and the kind of market condition you are trading in. It might not be a wrong thing to move your SL or add to a loser if market conditions suggest that might be the right thing to do or if these are built into your system and you know the LIMITS of such processes. Cheers. In other words, I think the primary technical reason for failure is the the lack of appreciation...
good points
1. having too many positions opened at a time.
2. failure to define clearly the lot size suitable for the account type you are trading with and abide by it
3. not having enough insight into which currency pairs that when there is change in the one will also affect the other pair
Quoting PipTrapper
{quote} ... the ideal is somewhere on or near the fulcrum between the two


Sadly, I don't think I'm ever going to get there.
I have no clue what I'm talking about.
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