95% of traders lose because 95% of traders do the same thing,eg S/L,TP,T/F ,Fibs Risk v Reward set in stone,its like shooting fish in a barrel for good traders
2
- #103
- Sep 26, 2017 10:40am Sep 26, 2017 10:40am
I would have added another choice if were creating you poll on why 95% traders fail. Not learning how to discipline yourself in life and trading. To paraphrase on old adage - "To waste* is a terrible thing to a disciplined mind." (*to waste time, effort, sleep, money and skill on unprofitable habits, and disctractions)
Discipline should be rather kind of a tool, like a hammer for a worker.
Discipline could be both profitable in long term as well as can be ruinous if a system in long term is bringing negative return.
Probably the most important thing that I've learned on forex market is that there are no dogmas. So the statement that discipline is always Your friend is also very dangerous and false dogma.
An example: Once I checked what is a consistent return of a simple strategy:
EURUSD, h1, MA[20],
when price closes above MA buy [1] until close below MA,
when price closes below MA sell [1] until close above MA.
So I wrote an indicator which calculates this accumulatively from beggining of loaded chart.
Do You know how looked the result more or less?
like this:
Almost all of the time. So If somebody would hold a discipline he/she would spend all of money and would not see any positive result.
Regards
- #108
- Sep 28, 2017 2:39pm Sep 28, 2017 2:39pm
Losing traders are too stupid to know when they have a winning system. Their false expectation is that a winning system wins most of the time with a few losses here and there. They have no concept of statistical variance. An outstanding winning system could easily have 12 to 20 losses in a row. Losers quit after 8 losses in a row and are off to the next system. They have no idea that they held a diamond in their hands and threw it away. They bet and gamble at 20% of their account at a time. Their account cannot survive the normal expected losses...
12 to 20 loser in a row do you face ever. ....
Trade fearless not careless...
Syed Mohsin Ali Profit This Month:
-509
I believe most traders fail because they don't use proper risk management and are unwilling to cut their losses. Losses are part of trading and should be accepted.
