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Why 98% Of All Day-traders Fail 30 replies

Why most 'traders' fail 12 replies

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The Reason why 95% Traders fail 341 replies

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Why 95% Of All Traders Fail

Fear and Greed as the two main factors have even earned an index under their name and serves as a driver to peoples' losses usually.
I agree with the consistency point, I believe that is such a huge factor. I've read many stories of people losing money for years, sometimes thousands of dollars. The ones who pushed through the expected losses when they were inexperienced are the ones who will end up making a lot of money. Now depending on how much time/effort/money/etc. you put in at first can make your time horizon to making consistent profits much shorter, but no matter what if you continue to put in the effort to continue learning and growing (as opposed to getting down a few trading rules and never looking to learn more) you will be a successful trader. Now of course all the other factors play an important role in being successful but consistency is a big one.
Quoting goldORcold
Fear and Greed as the two main factors have even earned an index under their name and serves as a driver to peoples' losses usually.
There is nobody who can predict the real faction of this market with certainly , so fear is expectable but not greed which can be dangerous when trading practically.
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Why most traders lose money and what traders often fail to realize is that the market is the collective movement of their actions and reactions to their own actions and to other people’s actions. Most traders seem to think of the market is something that has some external value outside of the price attributed to it by traders. I prefer to think of it as a real-time gauge of a society’s view of their own productive capacity.
Quoting goldORcold
Fear and Greed as the two main factors have even earned an index under their name and serves as a driver to peoples' losses usually.
Agree with your opinion! Greed is the main problem here, this is why maximum new Forex traders start their live trading too early before completing their learning process!
Quoting ForMeFact0ry
I hope that FF can give me unlimited access to edit this post, I am writing a new series of post on why traders fail: "WTF" ... stay tuned... I have done or will hope not to do these mistakes, these are just sound advises.. 1) We do not have discipline, we create a plan to trade, that's good. But: 1.1) Keeping to the plan after entering the trade is quite a challenge, the longer you are in the trade, the more prone you are changing your initial plan. 1.2) Keeping to the same plan over and over again is also difficult. If you have executed Plan A...
Reverse psychology;
Treat your winning trades like your losing trades.
When you have a losing trades, you have hope that price will turn around back into your favour. You will have that drawdown so big that it will be too late.
When you have a winning trade, you are so tempted to close it so that you can realized the profit. Eventhough it has not reach the maximum profit potential. You are also afraid that you will lose the profit if the price goes against you before you are able to close your trade.
These are some of the main causes people lose in trading, close winning trades prematurely and hold losing trades for longer that you should.
Stop Loss places on every trade as an insurance in cases World War 3 or Ecomic Collapse happens and your not at your desk. Taking stop loss should always be on your mind and it is fixed. If certain situation happens, take stop loss automatically. An encouragement could be that you can entee the trade at a better price at a later time.
Take Profit target should be placed on every trade to visualize your end goal to help remind you that there is so much more that you can make instead of listening to that instant gratification voice in your head.
-Mr. Fan
bit . ly/fantestimonials
Quoting GeorgeBaile
{quote} Agree with your opinion! Greed is the main problem here, this is why maximum new Forex traders start their live trading too early before completing their learning process!
There is nobody who can control greed and emotions when trading practically , because it’s a common human habit but if we practice more and more in live trading of course there is a possibility to avoid greed , generally we take demo account for practicing but there is no real money and no emotions and greed , that’s why the experience we took from demo doesn’t work in real account . so it is more appropriate to use micro account for practicing instead of demo.
The question should NOT why do you fail or not fail.

It's not about failing. It's about reality.

What would you answer if I ask you: "Why do I fail when I try to make money gambling in Casinos?"...

Since Forex is a based on a Gambling Scheme, the same logic applies here.

It's about statistics. And you cannot control that, because you can't predict the future.

Thus, I will tell you that 99.6% of people lose money in FOREX (Period over 1 year). (According to official stats. Administration Obama forced these retail Forex cheaters and scammers to report their number in public).

What makes you think you will be part of the random lucky 0.4% that makes some kind of profit after1 year of trading?

Nuff Said.
The Black Swan: The Impact of the Highly Improbable
What nobody wants to hear and what nobody wants to do.
The forgotten ingredient is discipline, it lacks in the majority, just look at society,road rage, on the mobile while driving, thieving, violence, everybody wants everything now without putting any effort to achieve the end goal, if discipline doesn't exist in your everyday life and your everyday walk it is not going to be there all of a sudden for trading,GW
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Quoting Ghost Walker
What nobody wants to hear and what nobody wants to do. The forgotten ingredient is discipline, it lacks in the majority, just look at society,road rage, on the mobile while driving, thieving, violence, everybody wants everything now without putting any effort to achieve the end goal, if discipline doesn't exist in your everyday life and your everyday walk it is not going to be there all of a sudden for trading,GW
Although I don't think it's just a matter of discipline, it is definitely a major factor. Many people also lack simple organizational skills when they begin trading. I know I certainly did.
Quoting Ghost Walker
What nobody wants to hear and what nobody wants to do. The forgotten ingredient is discipline, it lacks in the majority, just look at society,road rage, on the mobile while driving, thieving, violence, everybody wants everything now without putting any effort to achieve the end goal, if discipline doesn't exist in your everyday life and your everyday walk it is not going to be there all of a sudden for trading,GW

that correct my friend discipline many did forget that those days ???
  • Post #153
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  • Edited Mar 1, 2018 4:33pm Feb 28, 2018 8:41pm | Edited Mar 1, 2018 4:33pm
hi no need EA just follow a very successful system that all but discipline

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Quoting ellenbrook
hi no need EA just follow a very successful system that all by discipline {image}
Which system would you recommend to use?
Quoting mlawson71
{quote} Which system would you recommend to use?
Southern Cross Trader
that the one read all be very very discipline then all be okay
Besides discipline and sensible MM if you haven't got an edge you'll end up losing your account and money anyways it's just a matter of how long can you sustain your account.

So my answer is "EGDE"

Keep your money in your pocket/account until you have figured out an "EDGE"

Forget about indicators/systems or blindly following someone else, no one will give away their true edge so you have to do the tough job of figuring out your edge yourself no one will or can do that for you.
Tape reading is an ART
Quoting ellenbrook
{quote} Southern Cross Trader that the one read all be very very discipline then all be okay
I think I've heard about this before, I should look into it in more detail. Thanks for the recommendation.
Well, I think this figure is a bit exaggerated. I think they loose not more than about 70% . They do so because they watch too much commercials demonstrating how easy it is to make money on forex. That leads to loosing money.
Quoting Derzo
Well, I think this figure is a bit exaggerated. I think they loose not more than about 70% . They do so because they watch too much commercials demonstrating how easy it is to make money on forex. That leads to loosing money.
Agree something about you. This statistic is completely true for the newcomers. Minimum 90-95% newcomers become loser from this trading place.
This question was asked like before almost a decade and the end of bull markets 2008 which was one of the historic crashes the stock market has ever seen.

Anyways the answer is incredibly simple as to why 95% of traders lose money its because they do not have any statistical edge.
One of the hardest truth for most people to digest is that to beat the market consistently one must have a mathematically proven statistical edge.
Most newbies who are entering stock,forex markets have no knowledge of what kind of thing they are dealing with.So they end up giving all their money to the markets.
I agree about the discipline,money management and psychology part as many of those who have pointed out already so i wont go into that in much details but there is something more than that which is needed to succeed consistently and that something more is called mathematically proven statistical edge.
No one ever Discovered anything new by colouring inside the lines.
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