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Why 99% of traders lose money

  • #41
  • Nov 25, 2017 10:47am Nov 25, 2017 10:47am
Quoting profitfarmer
ForexFactory has an option to add and attach a Trade Explorer ( like i have) to your account, make it easy to keep track of your trades and progress.
Man are those 63,5K pips or pipettes you earned this year? I would imagine those are 6,5K actually? Am I right?
Impressive anyway. Keep compounding?
  • #42
  • Nov 26, 2017 1:30pm Nov 26, 2017 1:30pm
Quoting marian27
{quote} Man are those 63,5K pips or pipettes you earned this year? I would imagine those are 6,5K actually? Am I right? Impressive anyway. Keep compounding?
you have a long way to go.
but lesson one: not all pairs created equal.
and in turn not all pips are equal.
i traded some exotic pairs, as i still do time to time. UsdMxn is one. it daily range is 1500-2000 pips. but it's pip values are not 10$/pip.
the usdmxn trades from my acct. stat:
USD/MXN........+4.9%...........47857 pips.......... 123 entries

to compare it, to something with similar number of trades.

GBP/CAD........+8.5%...........153 pips............124 entries
( these are net results, of said entries over the past X months)

if anything, i dont care the pip count, or the accumulated pips, or the profits in pips. the example to show that looking at pips can be very misleading.
i pay attention of the % gain, and the dollar gain ultimately.
also lets not debate the risk and how much profit is enough. i will let you at your own risk management, if that makes sense to you.
let just be enough to say, i can make a comfortable living from as little as 4% a month gains, so, i am not in the market chasing 40% or 100%, or whatever.

and sure, compounding is very powerful, and the my accounts getting very good use of that concept.
there is always, always another trade!!
  • #43
  • Nov 26, 2017 2:42pm Nov 26, 2017 2:42pm
I downloaded Forex simulator and tested my system on replay.
I was so wrong, it is so different than it looks when you see a finished chart.
A month that previously seemed to give me 500+ pips in backtesting, only realized -35 pips on forward testing with replay (
So disappointed but it's good that I didn't burn my account.
I would too like to make 4% with a large bankroll, but I need to work for that so no time to study and test systems.
Forex might not be for me, too small rewards for the amount of effort with a tiny bankroll like myself.
Good luck to you!
  • #44
  • Nov 26, 2017 4:03pm Nov 26, 2017 4:03pm
Quoting marian27
I downloaded Forex simulator and tested my system on replay. I was so wrong, it is so different than it looks when you see a finished chart. A month that previously seemed to give me 500+ pips in backtesting, only realized -35 pips on forward testing with replay ( So disappointed but it's good that I didn't burn my account. I would too like to make 4% with a large bankroll, but I need to work for that so no time to study and test systems. Forex might not be for me, too small rewards for the amount of effort with a tiny bankroll like...
the reality of backtesting.
and simulator still be a rosy picture where slippage not in the picture yet.
anyway, i would not say to give up, but work on some modifications perhaps.
on the other hand, try to not curve-fit too much your data, else it also becomes unlikely to repeat on real conditions.

as for forex: it may be for you or anyone. i dont think one needs to get discouraged about it.
for the returns: get realistic! just how much your bank pays you per year? or per month? how much the stock markets make in a good year?
the rewards are there!
tweak a little down your expectations, and go on to work about that bankroll.
again, how much is your salary? if say 2000$ a month would be probably something that in your country considered good, would you think that making 2-3000$ from forex woudl be rewarding enough?
would you think that 50k bankroll with 5% return a month could earn you that? i would say that a lot less than your "original plan"...
and 50k is a lot less than buying a restaurant, or a car repair shop, or even an 18 wheeler to drive....all relative.
should you make more than 5% a month, or you need less than 2500$ to feel you can live comfortable enough, you can reduce that bankroll, maybe even to half...
and comes the beauty of it: just how much a profit you need to make on an average day to have 5% profit a month? that is it, 0.25%!!!
likely something you never considered when was thinking about risking 5%/trade

there is plenty to consider, and you can do some trading and compounding why adding extra savings from salary to an account. if you learn to trade profitable, the rest will take care of itself.
as a bonus: there or other ways to also gain income if you can really trade profitable, like manage money ( where your interest fully inline with the investors, ie no profit, no payment).

best of luck!
there is always, always another trade!!
  • #45
  • Nov 27, 2017 6:17am Nov 27, 2017 6:17am
Just be prepared for the long haul. Keep trading positions tiny, so that you only drip feed away an acceptable amount over the coming years.

Let's face it, you would pay money to learn whatever course that you choose in life, why should trading be any different. If you see it through, all the way to regular profitability somewhere down the line and have only thrown away say $10k in the process, you will have done better than the vast majority.
GoFundMe -stage-4-glioma-brain-cancer-fighter (link in my profile)
  • #46
  • Nov 27, 2017 6:24am Nov 27, 2017 6:24am
What do you think about the EA robots sold on mql5.com for example?
I tested a few and they look amazing on test, why would the creators sell the for $100 if they are so good?
Can't they keep for self use and make millions?
I just tested on highly reviewed EA and shows that from 2012 till present it would have made 1million from just $100 initial deposit.
Where is the catch? why would someone sell such a treasure for any amount, they could created a signal from it and rake thousands each month plus running their bankroll into infinite millions.
Do they work only on the past and fail in future?
Are the reviews fake? where are the bad reviews from buyers, anybody can leave one after buying.
  • #47
  • Nov 27, 2017 1:21pm Nov 27, 2017 1:21pm
Quoting andoseg2
{quote} that's all folks. End of story.
hello i'm a new member i'm starting with a $2200.00 dollar account..losing is the price of having the chance to become a millionair an live out your dreams..in time
  • #48
  • Nov 27, 2017 1:49pm Nov 27, 2017 1:49pm
Quoting marian27
what do you think about the ea robots sold on mql5.com for example? I tested a few and they look amazing on test, why would the creators sell the for $100 if they are so good? Can't they keep for self use and make millions? I just tested on highly reviewed ea and shows that from 2012 till present it would have made 1million from just $100 initial deposit. Where is the catch? Why would someone sell such a treasure for any amount, they could created a signal from it and rake thousands each month plus running their bankroll into infinite millions....
i agree take small bits out of the market with each trade, demo untill you feel you can successfullly beat the market with your chosen plan of action the fits your style..i have a trading style that have beaten the market ..20 trades no loses...the key is small wins, stronge mental, an best to have trading style that you created..that way you can tweak if needed...use compounding so you can grow your account, increase your gain size, with the same amount of effort each time..see yourself as a boxing promoter..choose your battles and use timing...follow me lets shock the world!
  • #49
  • Nov 27, 2017 2:53pm Nov 27, 2017 2:53pm
Quoting Thegreatest
{quote} hello i'm a new member i'm starting with a $2200.00 dollar account..losing is the price of having the chance to become a millionair an live out your dreams..in time
are you taking about lottery or trading?
there is always, always another trade!!
  • #50
  • Nov 27, 2017 3:29pm Nov 27, 2017 3:29pm
Quoting Thegreatest
{quote} hello i'm a new member i'm starting with a $2200.00 dollar account..losing is the price of having the chance to become a millionair an live out your dreams..in time
I wish price of becoming a millionaire is just 2200 usd. Just because you can run you cannot be top soccer player. Actually the chances of one to be a great trader is less likely than becoming a top class soccer player. Always have achiavable short term goals. First try not to loose. Winning is easy.
  • #51
  • Nov 29, 2017 3:38am Nov 29, 2017 3:38am
What would have happened in this gap if I was selling and the red line is the stop loss?
Would the stop work or my account be wiped?
Attached Image (click to enlarge)
Click to Enlarge Name: gap.png Size: 28 KB
  • #52
  • Nov 29, 2017 5:13am Nov 29, 2017 5:13am
Quoting marian27
What would have happened in this gap if I was selling and the red line is the stop loss? Would the stop work or my account be wiped? {image}
the stop will be executed (hopefully) on the first available price...ie. if your trade was larger, the account may be wiped out.
there is always, always another trade!!
  • #53
  • Nov 29, 2017 5:19am Nov 29, 2017 5:19am
So the stop will be executed up there? you telling me I can grind for months and years and a thing like this can wipe all my progress or the whole bankroll?
Okay guys, it was nice meeting you. Forex seems like the biggest waste of time ever. I'm done, withdrew my $, deleted the platforms and you ll never hear from me again.
  • #54
  • Nov 29, 2017 7:10am Nov 29, 2017 7:10am
back to the OP of why 99% lose. Think my take on this might be a little different to most...

Long time ago in an online poker forum there was a "why can't people of average intelligence beat low stakes?" thread. Medium to high stakes players were baffled by this. As a low stakes player all you had to do was learn some theory, strategy and apply the rules and stick to the plan. The plan (tight aggressive) that had been proven to work over and over.

Most people are flawed in some way. Bad temper, jealousy, timid, aggressive, greedy, superstitious, unable to handle stress / swings, plus many more. At the poker table with such limited information to base decisions on, these flaws would eventually show themselves. Leaning on the player's mind until they start making slightly bad choices that would snowball and warp their strategy.

If you're a successfully trader who just learned how to trade and did it. Well done, you owe your parents a very very big thank you for raising such a well rounded human.

For the rest of us. Exercise and/or meditation is the best answer. And don't forget all the technical stuff either :-)
  • #55
  • Nov 29, 2017 8:15am Nov 29, 2017 8:15am
Interestingly, i've long spoken of exercise being part and parcel of trading.
GoFundMe -stage-4-glioma-brain-cancer-fighter (link in my profile)
  • #56
  • Nov 29, 2017 8:16am Nov 29, 2017 8:16am
Quoting marian27
So the stop will be executed up there? you telling me I can grind for months and years and a thing like this can wipe all my progress or the whole bankroll? Okay guys, it was nice meeting you. Forex seems like the biggest waste of time ever. I'm done, withdrew my $, deleted the platforms and you ll never hear from me again.

Google the EurChf 'Black Swan' event.

I don't understand anyone trading Forex in any case. Switch to Futures where it is a level playing field.
GoFundMe -stage-4-glioma-brain-cancer-fighter (link in my profile)
  • #57
  • Edited 5:52pm Nov 30, 2017 5:36pm | Edited 5:52pm
People lose money mostly because of greed. You know when you think you can predict a move because you made a couple dollars, and you put on more risk than you can tolerate because you think your going to be rich at the end of the trade. Then some news story come out and wipe out your account.

The best way to avoid that is to stick with a good money management strategy like risking no more than 2% on each trade, so you can stay in business despite the few loses. Have reasonable expectations and build your account patiently. 99% just is not patient, want to get rich fast and think they can out smart the market. That's why they trade Forex in the first place lol.

But wiping out a account brings you back to reality, and 99% quit. the 1% who go back into the fire becomes forex gladiators eventually.

Happy trading everyone
  • #58
  • Dec 1, 2017 10:35am Dec 1, 2017 10:35am
Firstly, lets not assume that we will be among the 99% of losers. Atleast I am not among the 99% losers.

To be successful, all that we need to do is small things. Don't look for big wins from one single trade to make you a millionaire.
Every trader must change this mindset. but vested interests like the training institutes and educators do not want this mindset to go away.
A trader should have a simple plan that has a small target to achieve with each trade.
If target is 500 pips a month, then divide it by the number of trading days available.
Every month we get roughly 20 trading days.
then the daily target will be to achieve just 25 pips
If we break down this also into couple of trades to achieve, then it becomes even easier.
target this 25 pips with 5 or 6 trades. that brings it to around 5 pips to win on every trade.

Now that there is a simple plan that is easy to execute in hand, lets remember few more things.
Stop listening to the so called experts who preach that if we have short time frame we do not make money. may be they do not make. that's the truth.
There are 1000s of unknown traders who profit from short term trading and do not even talk about it. because they are earning and don't waste time preaching.
It doesn't matter if we pay a few dollars more in commission, but if we remain profitable every day and add twice or thrice the commission paid as profit to our kitty, it is not going to hurt us. Every additional dollars falls into our kitty is welcomed with a big smile.
At the end of the day we need profits and not an open position that will disturb our sleep. This is very important.
Since forex is a 24 hour market, carrying overnight positions is not a good idea. Any sudden volatile movement against your open positions can affect the account badly.
  • #59
  • Dec 2, 2017 3:17am Dec 2, 2017 3:17am
Quoting profitfarmer
{quote} if say 2000$ a month would be probably something that in your country considered good, would you think that making 2-3000$ from forex woudl be rewarding enough? would you think that 50k bankroll with 5% return a month could earn you that? i would say that a lot less than your "original plan"... and 50k is a lot less than buying a restaurant, or a car repair shop, or even an 18 wheeler to drive....all relative. should you make more than 5% a month, or you need less than 2500$ to feel you can live comfortable enough, you can reduce that bankroll,...


Let me ask you, how much would you risk per trade on 50k account? 2%? It's 1000$,right?
So you going to risk 1000$ PT to make 2500$ monthly?
Whether you think you can, or you think you can't,you're right. H.F.
  • #60
  • Dec 2, 2017 4:37am Dec 2, 2017 4:37am
Boys trading is a serious matter.
It's a job.
Do you think that in the medical forums there are discussions called "why 90% of cardiac surgeons kill their patients?".
No. And do you know why?
Because that guy to become a cardiac surgeon took at least 10 years of study. And how long have you been studying?
Here because.
Because 90% takes it as a game, an easy way to make money, like having a casino at home.
And like at the casino the bank always wins.

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