What makes You lose in the market? | Forex Factory

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What makes You lose in the market?

  • #1
  • First Post: Feb 18, 2018 8:17am Feb 18, 2018 8:17am
Hi trader fellows,
I want to discuss with you about what makes us to lose in the market - trading strategy (low/high timeframe, setup or trigger), wrong mindset as a trader etc...
Analyse your charts when you have lost the trade and discuss it with others why it happened. Is it your strategy or other factors makes us to lose that trade...

I know that it doesn't exist 100% profitable trading method, BUT what makes us not to be profitable in the long run? why only 5-10% of the traders make it...?
profitable trading does not mean trading everyday
  • #2
  • Feb 18, 2018 8:30am Feb 18, 2018 8:30am
I think there are different reasons why people lose. I guess the most important one is for example taking 1.0 lot trades with a leverage of 500 on an account with barely 200 euro/usd. Ironically I think that people with a profitable strategy still are able to lose money. For some reason people's emotions are always more powerful than rationality. And in daily life that might be useful or might be harmful in some cases. The problem with a financial market however is that money is on stake because of this emotional impulsivity.
  • #3
  • Feb 18, 2018 8:32am Feb 18, 2018 8:32am
if you want to survive in the long run you got to use multitimeframe analysis and that is a hard note to crack ... It took me years to get somwhere ...
  • #4
  • Feb 18, 2018 8:46am Feb 18, 2018 8:46am
Quoting richadi36
Hi trader fellows, I want to discuss with you about what makes us to lose in the market - trading strategy (low/high timeframe, setup or trigger), wrong mindset as a trader etc... Analyse your charts when you have lost the trade and discuss it with others why it happened. Is it your strategy or other factors makes us to lose that trade... I know that it doesn't exist 100% profitable trading method, BUT what makes us not to be profitable in the long run? why only 5-10% of the traders make it...?
It is 100% mind set.
Neither a Bro Nor a Pro I am I
  • #5
  • Feb 18, 2018 8:53am Feb 18, 2018 8:53am
No long term edge. The losing 95% doesn't have an edge. They think they have, because of the confirmation bias when looking back, but when doing it live, it produces nothing. If you have an edge, your mindset and psychology will fall into place automatically.
Price and volume reveals everything. The market moves on supply and demand.
  • #6
  • Feb 18, 2018 9:24am Feb 18, 2018 9:24am
Quoting cvds16
if you want to survive in the long run you got to use multitimeframe analysis and that is a hard note to crack ... It took me years to get somwhere ...
Long term success isn't attainable without day to day consistency. ~ Micheal J Fox
  • #7
  • Feb 18, 2018 9:31am Feb 18, 2018 9:31am
Quoting richadi36
Hi trader fellows, I want to discuss with you about what makes us to lose in the market - trading strategy (low/high timeframe, setup or trigger), wrong mindset as a trader etc... Analyse your charts when you have lost the trade and discuss it with others why it happened. Is it your strategy or other factors makes us to lose that trade... I know that it doesn't exist 100% profitable trading method, BUT what makes us not to be profitable in the long run? why only 5-10% of the traders make it...?
Almost NO to verry little understanding of volatility is the biggest reason.... there are approx 11 to 15 ways how price represent itself (these are not double bottom or flag like structure i m talking about) .... normally people know only 2 types how price moves 1) trend 2) consolidation.......... if you have time then look variations in that first trend and many varieties in that consolidations too ..... using money management and risking tiny % of account per trade is also key... most of the so called professionals have lack of understanding about volatility but they live there life just on risking verry less per trade, in long run they earn little edge and become wealthy, thats the reason how dumb brain gets attitude and call themselves professional traders without ever imagining what kind of data does all central banks uses...
In the court of lord, only love and devotion is counted...
  • #8
  • Feb 18, 2018 9:53am Feb 18, 2018 9:53am
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Trade fearless not careless...
Syed Mohsin Ali Profit This Month: -2,370
  • #9
  • Feb 18, 2018 9:53am Feb 18, 2018 9:53am
Quoting nadiyakinare
{quote} Almost NO to verry little understanding of volatility is the biggest reason.... there are approx 11 to 15 ways how price represent itself (these are not double bottom or flag like structure i m talking about) .... normally people know only 2 types how price moves 1) trend 2) consolidation.......... if you have time then look variations in that first trend and many varieties in that consolidations too ..... using money management and risking tiny % of account per trade is also key... most of the so called professionals have lack of understanding...
Excellent point as to what the professionals do. One day, someone will come forward and present us the fire way to never lose in forex. Until then we should sit and wait on the side huh?
  • #10
  • Feb 18, 2018 10:04am Feb 18, 2018 10:04am
my broker makes the moves against my tp zones,i dont place SL.so i need an EA that hides tp from broker and it has got trailing stop and if it works for all pairs when attached to one pair.i dont know if i am changing the topic of the discussion.

so broker can be one factor to lose the trades.
  • #11
  • Feb 18, 2018 10:14am Feb 18, 2018 10:14am
Ego only. Nothing else

when you know nothing EGO will tell you know everything and when you have actullay learnt how to trade it will tell you , you know nothing won't allow you to get in on a good trade and you will end up taking a bad trade.
Avoid what is Strong,Strike at what is Weak
  • #12
  • Feb 18, 2018 10:17am Feb 18, 2018 10:17am
The recipe for SUCCESS in trading is :

1) Understanding of the Market - how the forces are working (the foundation wich 95% of traders doesn't know, that's include the GURU analysts of the brokers)
2) A technical strategy - based on supply and demand - buy what is bought, sell what is sold, never buy what is
sold, never sell what is bought.
3) A risk management strategy - wich consist in reduction of initial risk with wich the trade was created, based on the
informations Maket give you every time while heading toward your take profit level
(extremely important)
4) Patience - to apply 2) and 3)
Money moves the market, not an indicator.
  • #13
  • Feb 18, 2018 10:21am Feb 18, 2018 10:21am
Quoting T4Trade
my broker makes the moves against my tp zones,i dont place SL.so i need an EA that hides tp from broker and it has got trailing stop and if it works for all pairs when attached to one pair.i dont know if i am changing the topic of the discussion. so broker can be one factor to lose the trades.
No it's not just as you think dear...
Trade fearless not careless...
Syed Mohsin Ali Profit This Month: -2,370
  • #14
  • Feb 18, 2018 10:22am Feb 18, 2018 10:22am
Quoting T4Trade
my broker makes the moves against my tp zones,i dont place SL.so i need an EA that hides tp from broker and it has got trailing stop and if it works for all pairs when attached to one pair.i dont know if i am changing the topic of the discussion. so broker can be one factor to lose the trades.
You can compare the price movements and price bars of three or four brokers. If they are the same then I think it is your trading strategy...
profitable trading does not mean trading everyday
  • #15
  • Feb 18, 2018 10:22am Feb 18, 2018 10:22am
What's made me lose in the markets; thus, blow my accounts is risking too much per trade. That is my number one killer. To me, there's no high or low probability setup. At that moment when you think you are looking at a high probability trade, that's when you become over confident and risk too much. You might be right today, but you only need to be wrong once to blow your account. So, the solution is, master a good strategy that gives you above 50% win rate, stick to it and risk small. Then in the long run you will become rich. No shortcuts!
  • #16
  • Feb 18, 2018 10:24am Feb 18, 2018 10:24am
What makes me lose is statistics. Its the other side of the win rate of my strategy, the "lose rate". I always follow the strategy and if the win rate is 51%, then I lose on 49%, if the win rate is 99%, I lose 1%. The only way to increase the lose rate would be to not follow the strategy, and the why's of this are unimportant.

In principle, I don't think concentrating on losing trades is productive. They are normally inherently in the minority, or at least, they produce lower losses than your winning trades. So let's say the ratio is 70:30 (2.33). If you focus in the losers and improve that situation by 10%, you reduce your losers to 27 and therefore improve your winners to 73, so you're now at 73:27 (2.70). If you put equal effort into focusing on the winners and improve that situation by 10%, you increase your winners to 77, and reduce your losers to 23, so you're now at 77:23 (3.35).
  • #17
  • Feb 18, 2018 10:25am Feb 18, 2018 10:25am
"What makes You lose in the market?"
U
WaBaS Where are Buyers and Sellers
  • #18
  • Feb 18, 2018 10:27am Feb 18, 2018 10:27am
Quoting magentfx
Ego only. Nothing else when you know nothing EGO will tell you know everything and when you have actullay learnt how to trade it will tell you , you know nothing won't allow you to get in on a good trade and you will end up taking a bad trade.
Is it the same as proper trading mindset, isn't it?
profitable trading does not mean trading everyday
  • #19
  • Feb 18, 2018 10:48am Feb 18, 2018 10:48am
Quoting tomorton
What makes me lose is statistics. Its the other side of the win rate of my strategy, the "lose rate". I always follow the strategy and if the win rate is 51%, then I lose on 49%, if the win rate is 99%, I lose 1%. The only way to increase the lose rate would be to not follow the strategy, and the why's of this are unimportant. In principle, I don't think concentrating on losing trades is productive. They are normally inherently in the minority, or at least, they produce lower losses than your winning trades. So let's say the ratio is 70:30 (2.33)....
You know, even your win rate is 30%, you can be profitable. How? Let's say your R:R (risk/reward) is 1:3. 1R is $100. 3 wins is $900 and 7 losses is $700. It means even if you lose 7 trades out of 10 you can be profitable...
profitable trading does not mean trading everyday
  • #20
  • Feb 18, 2018 10:52am Feb 18, 2018 10:52am
Quoting richadi36
{quote} You know, even your win rate is 30%, you can be profitable. How? Let's say your R:R (risk/reward) is 1:3. 1R is $100. 3 wins is $900 and 7 losses is $700. It means even if you lose 7 trades out of 10 you can be profitable...

Yes, obviously.

Don't take too literally which ratios I talked about - it could be win rate, it could be r;r, it could be average winner: average loser. Doesn't matter. Principle's the same.
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