Why 90% Of Traders Lose Money And How To Be In The Top 10%? | Forex Factory

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Why 90% Of Traders Lose Money And How To Be In The Top 10%?

  • #1
  • First Post: May 16, 2018 10:49am May 16, 2018 10:49am
Hi guys, i started a new series on youtube related to trading psychology...
Here you can find the first video (let me know what you think about the topic)

Inserted Video


This is not intended as spam, let me know if it is and i will remove the topic.
BeSomebodyFX
  • #2
  • May 17, 2018 3:42am May 17, 2018 3:42am
Quoting JayRally
Hi guys, i started a new series on youtube related to trading psychology... Here you can find the first video (let me know what you think about the topic) https://www.youtube.com/watch?v=eplA...ature=youtu.be This is not intended as spam, let me know if it is and i will remove the topic.
I really dont see a point every couple days someone opens a threat with the same issue.

P.s. We are not traders we are just speculators.
  • #3
  • May 17, 2018 6:16am May 17, 2018 6:16am
This video is just more of the same. True that trading too large a size will kill your account faster, but there are many other psych problems that Traders face:-

In my opinion the next biggest 3 problems are:-

1. Not having institutional training. - So you don't really know how the big boys trade and have no way of reading their intentions even when they are obvious on the chart!
Because of this you have no way of evaluating how good an individual trade is before entry, and no fact-based confidence!

2. Not using Value (because they are ignorant or just lazy) as means of determining whether a price pattern is bullish or bearish. - Because the exact same pattern can be either - the only way to know which it is, is to use Value!

3. Not trading multi-unit (using micro Lots if necessary). It is well known by professionals that it is many times harder to trade with a single unit (All-In then All-Out). Trading a single unit makes good exit management almost psychologically impossible.
But trading with even a 3 unit entry of the same overall risk as a 1 unit entry allows you to take an early profit, move the remainder to Break Even, then take a profit at a modest target , and still leave a 'runner' in in case of a much bigger move than expected. This gives you at least a 5 times better chance of making consistent profits (provided you have fixed points 1 & 2 above).
  • #4
  • May 17, 2018 8:38am May 17, 2018 8:38am
Quoting ianf0ster
This video is just more of the same. True that trading too large a size will kill your account faster, but there are many other psych problems that Traders face:- In my opinion the next biggest 3 problems are:- 1. Not having institutional training. - So you don't really know how the big boys trade and have no way of reading their intentions even when they are obvious on the chart! Because of this you have no way of evaluating how good an individual trade is before entry, and no fact-based confidence! 2. Not using Value (because they are ignorant...
You last point is the main pillar of my trading, when i started opening different positions at the same level one with 20 pips target the other one with 40 pips and the last one with an open take profit, i then started to close my first position when 20 pips were hit, and move the stop loss of the remaining two positions at the entry level, in that way i have 20 pips in my pocket no matter what, and from that moment my trading took flight.
BeSomebodyFX
  • #5
  • May 17, 2018 12:05pm May 17, 2018 12:05pm
JayRally,
Congratulations on at least having one of the 3 as part of your trading.
But in my opinion that one is rarely enough on its own - successful traders need at least one of the other two points as well.
That is why I have a thread on those subjects

Ian
  • #6
  • May 18, 2018 1:40am May 18, 2018 1:40am
Quoting ianf0ster
JayRally, Congratulations on at least having one of the 3 as part of your trading. But in my opinion that one is rarely enough on its own - successful traders need at least one of the other two points as well. That is why I have a thread on those subjects Ian
With the first point "Institutional Training" you mean: learn to recognize "stop hunting" "false breakouts" "M and W formations" etc...?
BeSomebodyFX
  • #7
  • Last Post: Edited 2:25am May 18, 2018 1:54am | Edited 2:25am
Quoting JayRally
{quote} With the first point "Institutional Training" you mean: learn to recognize "stop hunting" "false breakouts" "M and W formations" etc...?
No, you are quoting just the 'symptoms' of the Institutional Trading business plans. There are 3 basic models (plus the Hedgers) the best known of which (due to ex-floor traders) is the Market Maker Business Model: Buy the Bid and Sell the Ask thereby pocketing the 'spread'.

But unfortunately many/most Retail Traders have a false view of what Market Makers do due to educators not distinguishing between Market Makers and Directional Prop Traders.

Of course many/most Retail traders don't understand Hedging. This is because some dumb-ass has said that they are hedged when they are really flat. If you hold two equal and opposite positions in any single market, then your aren't Hedged you have just paid 2 x the spread to be Flat !

Real hedging is done between the Options market and the cash or the futures market.
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