What makes You lose in the market? | Page 3 | Forex Factory

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What makes You lose in the market?

  • #41
  • Feb 27, 2018 10:36am Feb 27, 2018 10:36am
Quoting richadi36
In this thread I start to discuss and share my thoughts and opinions with you about things that make us to lose in the market. There are mainly three amongst traders. #1 - counter trend trades. In each timeframe (the higher the better) we can see its own trends, first we should identify the trend direction and trade along the trend... for instance, https://www.forexfactory.com/attachm...9&d=1518241149 and https://www.forexfactory.com/attachm...1&d=1518241160
...#2 enemy of all amateur traders is absence of trading method (strategy, system etc.). Here, I mean, the detailed algorithmic strategy. For instance, on what timeframe they trade, how much SL, TP or trail SL, and, on what pairs his strategy works, what setups they take (PBs, BUOB) and many more...
profitable trading does not mean trading everyday
  • #42
  • Feb 28, 2018 2:38pm Feb 28, 2018 2:38pm
I lost yesterday because I traded the same trade I placed the day before, but it wasn't the same circumstances and I took a shortcut from my usual analysis, so that would be a mental problem. I edited my trading plan, gained today.
big money makes big moves and then hides during small money chasing.
  • #43
  • Mar 2, 2018 9:01pm Mar 2, 2018 9:01pm
Mindset

Poor money management

lack of experience


A book could be written on each of these points
  • #44
  • Mar 3, 2018 2:12am Mar 3, 2018 2:12am
Failure to respond to market changes and being too stubborn to acknowledge your own mistakes in trading.

Every trading strategy has its own effectiveness in different market situation.

But even the best strategy applied in the most suitable market condition can still go wrong, and most traders are way too disciplined to follow the strategy and ignored their instinct from time to time.

I realised that it was never about looking for the best price to enter a position, but the responsiveness to market changes when you are in a trade makes the big difference.
Aim for what's achievable and don't be a dreamer.
  • #45
  • Mar 3, 2018 2:39am Mar 3, 2018 2:39am
Quoting dkrock
The vast majority of traders, about 95%, use support/resistance lines as trading signals. Those lines represent trades that are finished. If you trade them, then what you are saying to yourself is the current trade will do exactly what the previous trade did. Hmm. The current trade has new traders with new money with new reasons with new economic news reports. Do they seriously think the market just repeats itself over and over?
SRs just represent LIQUIDITY.. nothing magical.
  • #46
  • Mar 3, 2018 2:47am Mar 3, 2018 2:47am
Quoting dkrock
{quote} I said they were garbage, not magic. I never use them. They are historical representations of ancient trades. You can call them whatever you want. You can trade however you want. Doesn't matter to me. You can take my advice or ignore it. 95% of traders use them, and supposedly 95% of traders lose. So, hmm. Go for it.
hahaha garbage sure
  • #47
  • Mar 3, 2018 2:50am Mar 3, 2018 2:50am
Finally someone got holy grail ... LoL..
Trade fearless not careless...
Syed Mohsin Ali Profit This Month: -2,370
  • #48
  • Mar 3, 2018 2:53am Mar 3, 2018 2:53am
Quoting dkrock
{quote} Just stating facts. It is not really funny. It is sad and pathetic that so many people fall prey to that form of analysis. Makes the banks and brokers A LOT of money. Up to you to decide who gets your money, you, or them. Good Luck.

liquidity = momentum dkrock....anyways good luck to you too.
  • #49
  • Edited 4:04am Mar 3, 2018 3:10am | Edited 4:04am
Quoting dkrock
{quote} If that is true, why are you arguing with me?? If liquidity is a horizontal line, and momentum is up/down movement, I don't understand how they are the same thing. If your car is parked and mine is moving, how is that the same thing? Whatever.
One day you'll get it...

moshin probably got it right even though I wouldn't call anything "the grail"
  • #50
  • Mar 3, 2018 5:45am Mar 3, 2018 5:45am
Hi All,

In my experience, losses are part of any trading system. There is no 100% win rate system out there.

I think the big questions are: What makes people lose more than they should? and what makes people win less than they could?

What makes people lose more than they should?
Once you have you're system in place (which has been tested) and have a strict set of rules to abide by, the only other reason to take losses greater than what you should (Those hard hitting losses which make you contemplate trading as a career) is yourself. Most of the time i see traders take losses greater than they should is through the fear of losing. In my years of trading I have seen traders cancel their stop loss because price is a pip or two away from stopping them out and they hope that if the take their stop off, price may turn in their favor. Utter nonsense. There is no room for hope in trading.

Another reason for taking losses greater than one should, is down to risking far more of their account on a single trade. This is the gamblers mentality. Hoping for one big trade that will double or triple their account. It's only when that position starts to move against them that they realise that placing such a large percentage of their account onto one trade was a bad idea.

There are another couple of reasons why people take losses greater than they should, but feel free to message me and we can have a proper conversation about that.

What makes people win less than they could?
As for making less than what could have been made in a trade, this can boil down to a few things but the main two reasons I've come to find are:

  1. Fear of losing or breaking even when in a winning position
  2. Greed. I.e Believing that a winning position will run forever

Fear of losing or breaking even when in a winning position
I'd imagine that most traders who made it to the point of becoming consistent in taking profits not only know where to exit a trade if they are wrong, but also know when to exit a trade if it turns out that they are right! Although i believe that knowing where to exit if a trade is wrong holds more weight than knowing where to exit if a trade is correct, they both are vital. This should all be part of the plan before you enter the trade.

Greed. I.e Believing that a winning position will run forever
Simple - If you are in a winning trade which is looking like it will continue to move in your direction, move your stops cautiously to make sure you take profit. If you were 1:3 up and ended up take a 1:1.5, did you make a profit on your original risk, or did you take a loss on what you could've had?

Thanks all

OneWave

  • #51
  • Mar 3, 2018 7:04am Mar 3, 2018 7:04am
''What makes You lose in the market?''

No edge for the retail traders. Period.

If you want to take money consistently from the big boys or their algos, you need to have an edge like the casino have an edge, even very small, but enough to make them profitable in the long term.

Question yourself objectively: Do you have some information the banks or algos cannot have or some specific skill to predict the market better than them, or maybe to be faster than them to grab a pip when scalping?

Maybe you do. But please understand that your lagging indicators or TA are useless in that matter...

If you don't have a real edge to rely on, your chances are zero, because they do have many edges over you (almost unlimited amount of cash, insider information, light speed access to the market, ability to make the price or to manipulate it to trick you, best programmers for their algos....).

What is your edge to take their money over and over, month after month, year after year?
Don't give up on your dreams. Keep sleeping.
  • #52
  • Mar 3, 2018 7:32am Mar 3, 2018 7:32am
Quoting Artcool
''What makes You lose in the market?'' No edge for the retail traders. Period. If you want to take money consistently from the big boys or their algos, you need to have an edge like the casino have an edge, even very small, but enough to make them profitable in the long term. Question yourself objectively: Do you have some information the banks or algos cannot have or some specific skill to predict the market better than them, or maybe to be faster than them to grab a pip when scalping? Maybe you do. But please understand that your lagging indicators...

If by retail trader you mean retail day-trader or retail scalper, I agree with you and I'm smart enough to know I can never compete with the professionals on their own field.

However, when it comes to long-term trends, if the institutions are buying price higher and I get long onto the same trend, I'm going to make a profit and there's nothing they can do to stop me.
  • #53
  • Mar 3, 2018 7:45am Mar 3, 2018 7:45am
Quoting tomorton
{quote} However, when it comes to long-term trends, if the institutions are buying price higher and I get long onto the same trend, I'm going to make a profit and there's nothing they can do to stop me.
Yes IF you can predict the long-term trend consistently between 2 currencies. How would you do that?
Don't give up on your dreams. Keep sleeping.
  • #54
  • Mar 3, 2018 8:07am Mar 3, 2018 8:07am
Quoting Artcool
{quote} Yes IF you can predict the long-term trend consistently between 2 currencies. How would you do that?

I don't predict anything, I just follow the trend.
  • #55
  • Mar 3, 2018 8:34am Mar 3, 2018 8:34am
You're a clueless fukcin idiot, seriously give up commenting and trading, no wonder you delete all your comments, you should be totally embarrassed.


Quoting dkrock
The vast majority of traders, about 95%, use support/resistance lines as trading signals. Those lines represent trades that are finished. If you trade them, then what you are saying to yourself is the current trade will do exactly what the previous trade did. Hmm. The current trade has new traders with new money with new reasons with new economic news reports. Do they seriously think the market just repeats itself over and over?
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
  • #56
  • Mar 3, 2018 8:44am Mar 3, 2018 8:44am
Quoting richadi36
{quote} ...#2 enemy of all amateur traders is absence of trading method (strategy, system etc.). Here, I mean, the detailed algorithmic strategy. For instance, on what timeframe they trade, how much SL, TP or trail SL, and, on what pairs his strategy works, what setups they take (PBs, BUOB) and many more...
I agree with this. I wouldn't dream of putting on my trades without my rules. I use to think that I went a bit overboard with rules but do not say that now. I do not use charts but use excel so to each their own, but I find that spreadsheets force me to follow rules and not deviate.

I also believe that when you have rules and can back test those rules, your confidence in the trade is high and you'll stick with it. (not get emotional) I take trades that most would consider over exposure to one currency, but I have such confidence in my rules because I can go back in history on sheets to show how it has worked out the last 15, 20, etc times I took on that over exposure.

Great discussions.
Model 3 All Time Pips: -887
  • #57
  • Mar 3, 2018 8:48am Mar 3, 2018 8:48am
"What makes You lose in the market?"
Lack of knowledge, lack of patience, lack of discipline...inability to accept of being wrong.
NO MATTER THE SITUATION,NEVER LET YOUR EMOTIONS OVERPOWER YOUR INTELLIGENCE
  • #58
  • Mar 3, 2018 9:09am Mar 3, 2018 9:09am
Quoting tomorton
{quote} I don't predict anything, I just follow the trend.
I doubt it works for you in real trading other than being a simplistic mantra learnt by newbies from other losers.

The reality is that even Forex hedge funds with the best traders struggle to make money using ANY kind of strategy whether a carrying strategy (trend following), or a momentum strategy, or a value driven (fundamental). They have lost money in six of the last eight years.

Quote
Nonetheless, lackluster returns have become a familiar tale for currency investors. FX hedge funds lost money in six of the last eight years, the Parker Global Index data showed. Managers blame years of low volatility, geopolitical uncertainty and whipsawed monetary policies for their abysmal performance. Even when a clear trend emerges, investors often become too gun-shy to capture the move.

More details in this Bloomberg article :

https://www.bloomberg.com/news/artic...llar-perplexes
Don't give up on your dreams. Keep sleeping.
  • #59
  • Mar 3, 2018 9:13am Mar 3, 2018 9:13am
because broker always took the other side
  • #60
  • Mar 3, 2018 9:16am Mar 3, 2018 9:16am
I'll repeat myself; the main reason you all lose is because you approach this side of the industry completely undercapitalised, which then creates the majority of the self inflicted issues you suffer from. Such as: greed, fear, impatience, over trading, excessive risk, not being able to access the best FX markets available. Until you address your lack of funds you'll never experience success.

80% of retail traders have accounts of less than $2k, 90%+ of retail bets are for less than one lot, the vast majority of you are hopeless gamblers and dreamers. Want to consistently earn 25k a year, as a meagre salary out of the market? Then work off 50k accounts minimum and you may have a chance.
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
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