Why 99% of traders lose money

From what I see things are getting worse.
We went from 95% of 2009 to 99% of 2017...

I think one major reason alot of traders dont trade well, is because everytime they open a chart they really force themselves to see something on a chart that probably really isnt there, they over concentrate on it, over analyze it...instead of just lightly judging and reacting to what really is infront of them. Trading really isnt about perfection.. If you have one type of setup it wont look the same and cannot look the same everytime..if it looks close enough just take it, You have to take some losers here and there.

99% trader lose money because they do the same. 1% don't.

Ha, I have also very good systems. But hands do something else that mind tells them to do. So its not so easy.

traders lose because they don't know how to win - it really is that simple! knowing how to win needs to be the discussion

There are so many causes on why a large percentage of traders lose money. But you need to lose real money in order to learn. A good advice is to start with a small $1,000 account and trade only using the minimum lot size.

if you can lose a $1,000 you can lose $10,000 in fact its hard to put a limit on how much you can lose. Surely you first need to have a system that is profitable?

Forex and binary options popularity does its thing. There used to be fewer brokers and they were more honest and trustworthy. They never told anybody that it was easy to make money trading binary options.

The key to trading is having a deep understanding of how the markets truly work. Once you learn how every market on the planet is manipulated beyond comprehension, trading becomes easy.

I agree, in most cases, the ignorance of the trading strategy leads to great losses. Also, in my opinion, not tracking the news and lack of knowledge of the Forex market.
If you lost once, do not panic and in the end lose everything.
Change strategy, start thinking differently, etc.
Good luck.

We are trading against the Banks...

Hi to All...been reading previous post and agreed of some comments, but please understand, the most important in trading is a Good strategy and DISCIPLINE.
I have been trading for little over 10 years, and see many traders loosing due to luck of discipline.....and agreed also with KaroNowak...track the news !
Good Luck to all!

Traders loose money for a many reasons....Discipline is first...Carefully choose your broker, make sure is regulated )) there is so many hidden things Broker can do, starting with VDP ( Virtual Desktop plug-ins) to keep your money...Do you homework...do not waist your time opening accounts with unregulated brokers....Good Luck !

That’s the true story! Yes, there is nothing like shortcut way of success in any field! Problem is, a number of new Forex traders try to make huge money automatically without learning; that’s the reason why more than 90% traders are struggling.

this is a misconcept you writing, really.
just because you play basketballs with your friends 2x a week, it doesnt make you a basketball player. and most certainly it doesnt mean you are struggling in the NBA/pro basketball to make a living.

having 100$ and a cent/demo account does hardly qualify anyone even to be an aspiring trader, not to mention a serious, full-time trader.
thus one should be not measured to them, should not compare themselves to them.
just like not everyone who ever played basketball is a basketball player, from all this equation should be left out to be called trader all whom never even had a remote chance, for lack of whatever reason, be it time, talent, discipline, or capitalization, to ever become a trader.

at best many of the small scale losers are more a recreational gambler than a trader, as is.
they get the kick out of it as long as it last, and walk back to do whatever they are doing to make their living.
some take it to the next fan level...
the basketball players it is buying nike air jordan, a recreational gambler the newest EA.
nor will help to get closer to be in pro level. and most, deep in the heart very well know this.
but if you like the game, you keep playing basketball.
and if you like the excitement that 'trading brings' you keep your small scale recreation gambling habits.

give most demo warriors 10k real money and a chance to make a full time living or have no food to eat for the month...and see how lightning fast goes the trigger happy confidence, how quickly wash away the big words of risk:rewards, and how keep risking of 'only' 5% a trade fade to worry about the uncertain.
without actual, serious conditions, it is very unlikely one will go thru to change the habits that need to have to survive ( and perhaps prosper) trading.

PS: picked basketball, obviously the comparison stands for plenty things...

PS: picked basketball, obviously the comparison stands for plenty things...


gee im not to sure about the basketball analogy..

In basketball you get to go and play with a couple of like minded friends. In trading you play against the pro traders everytime.

Sure, one can do it with that knowledge and just enjoy the trading, but no one should be under the illusion that they get to go and trade with a few like minded friends.

take the parts from the example:

- not everyone has what it takes to be a 'trader'
- being able to place a trade, win some-lose some not equal to be a 'trader' in the sense as full time/pro
- with having some of the tools to use wont make a person 'trader'
- doing something for a living like 'trading' needs serious dedicated time, and effort
- to become a full time 'trader' you need the a business like take.
- as in any business, 'trading' has capital requirement, that someone playing around part time not willing to commit most of the time
-
as you are, you "play against" the 90% non-pro too ( if you take that 90% of 'traders' lose)...so, obviously on that analogy you play with mostly like-minded friends if you wish, and as per same stat that is far outnumber the pros. so, in that respect whom you trade against?
but hey, demo trading is a perfectly level playgrournd for the like-minded friends to play, and even offer some friendly ( no deposit needed ) competitions.

anyway, i am back to play on my playground, just watch your wallet if we meet there

Just wondering, how many of FF members actually make it to the 1%

Guys, losers are 99.99%, not just 99.00%. It is a huge difference.

There are even more then 1% making profit but you wont find them here. I guess about 10% make profit (in forex daytrading) I know quite a few, including myself. Just had an intresting conversation with a guy in a leading position of a well known broker, telling me that the best traders are like ghosts, they try to motivate them to join events to share their experience, but they prefer to stay incognito. You wont find them anywhere arround, no events, no forum, no website.

Some thumb rules, most don't know/follow.

consistency. You need clear rules, repeating them hundereds of times, without touching them, no changes,
don't trust your gut, just your rules. This is much easier with an EA - i would be a terrible manual trader
reduce costs make some research, depending on what you trade and how long (spread,commission,swaps),
use cashback, some are perfect for daytrading, others for swing trading, some only for FX some for Indicies
reduce slippage how? don't use (to many) stop orders. higher win ratio is better. Think about time stops.
Try to get out if it's a good price. Trailing stops are mostly not the best option in term of slippage.
stable risk dont raise your risk during a drawdown. it doesn't matter what risk you use, just stick to your choice
think out of the box try to find an edge others dont think of, enhance your strenghts. i found my edge/strength with seasonals

i could list some more but that's it for now.