the greatest strategy for losing money | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Nuggets of Wisdom from Jesse Livermore, Greatest Trader Ever 58 replies

Is opposite of losing strategy a winning strategy? 21 replies

Thursday, February 7th, Greatest Chance for Success 2 replies

The greatest Forex questions ever asked 14 replies

the greatest strategy for losing money

  • #1
  • First Post: Nov 2, 2018 3:45am Nov 2, 2018 3:45am
Hi traders,
we know that most in this market lose money, and most tries many strategies that make him lose, so if any one try to do the opposite i mean try to opposite the signals of the strategy to convert that lose to win, (if strategy give buy signal we sell and if give sell we buy) .
All Things Are Possible
  • #2
  • Nov 2, 2018 4:26am Nov 2, 2018 4:26am
Actually it doesn't work like that. At best, a strategy that has 50/50 ratio, means you should be @ breakeven, but you still pay spread, commissions and swaps, so you lose more than you win.

If you thought about it, finding a strategy that loses 70 or 80% of the trades, is as difficult as finding a winning strategy that wins the same amount.

I think all traders at some point during the start thought about doing this [including me], only to find the result I just told you about.

Good luck!
  • #3
  • Nov 2, 2018 4:37am Nov 2, 2018 4:37am
50/50 ratio you r right, even i have tested indicators with many setting with excel to get accurate results at best. any indicator alone gives 55% add commissions & spread get 0 profits.
All Things Are Possible
  • #4
  • Edited 6:00am Nov 2, 2018 5:44am | Edited 6:00am
Quoting RemonFxTrade
Hi traders, we know that most in this market lose money, and most tries many strategies that make him lose, so if any one try to do the opposite i mean try to opposite the signals of the strategy to convert that lose to win, (if strategy give buy signal we sell and if give sell we buy) .

In essence, a potentially winning strategy is one that incorporates a statistically robust positive edge; and vice-versa for losing strategies.

I say potentially because having a winning strategy does not mean you will win. You need to execute it in a disciplined, consistent, risk-controlled and emotionally stable way so that the edge will come through over a long series of trades. There are a lot more parts to a winning method than just the base trading strategy itself.

Most edges are quite small so the other elements mentioned are very important. I'd suggest it is the lack of expertise on these elements by the vast majority of traders that explains why most traders lose, not the base strategy employed.
  • #5
  • Nov 2, 2018 5:51am Nov 2, 2018 5:51am
Quoting Oldtraderman
{quote} In essence, a potentially winning strategy is one that incorporates a statistically robust positive edge; and vice-versa for losing strategies. I say potentially because having a winning strategy does not mean you will win. You need to execute it in a disciplined, consistent, risk-controlled and emotionally stable way so that the edge will come through over a long series of trades. There are a lot more parts to a winning method than just the method itself. Most edges are quite small so the other elements mentioned are very important. I'd...
From your post i can arrange reasons for lose as Follows (3 Factors) according to high importance factor
1- MM
2- Emotion Control
3 Strategy

so strategy is less important than first two
All Things Are Possible
  • #6
  • Nov 2, 2018 6:09am Nov 2, 2018 6:09am
Quoting RemonFxTrade
{quote} From your post i can arrange reasons for lose as Follows (3 Factors) according to high importance factor 1- MM 2- Emotion Control 3 Strategy so strategy is less important than first two
I'd essentially agree with that, yes.

A general problem I see is there is way too much attention placed on finding a 'great' strategy - and usually on just a killer entry signal, just a single part of an overall coherent strategy. And there is nowhere near enough emphasis or effort
placed on MM and emotional control to effectively execute the strategy, both of which are vital for long term consistent success
  • #7
  • Nov 2, 2018 7:20am Nov 2, 2018 7:20am
Quoting RemonFxTrade
Hi traders, we know that most in this market lose money, and most tries many strategies that make him lose, so if any one try to do the opposite i mean try to opposite the signals of the strategy to convert that lose to win, (if strategy give buy signal we sell and if give sell we buy) .
yes, i tried that.. and that's how i trade on my main account but it's not that easy thing as most thinking ..
i was trading using strategy that have win rate 3% i traded almost 1000 trades over more than year... then i was studying results i collected made a lot of experiments ... in the end i reverse it .. but guess what? success rate become 27% .... to be honest i believe market designed in the same way as casino just to make us loss easier than win ... but satisfy with my success rate 27% it's give me good return and after that as oldtraderman said .. you need to build MM and other things around strategy for make it successful and make your account grow ... so it's not easy as some thinking .. just reverse strategy and be winner not like that
  • #8
  • Nov 2, 2018 7:43am Nov 2, 2018 7:43am
JsCave i agree 100%
"to be honest i believe market designed in the same way as casino just to make us loss easier than win"
All Things Are Possible
  • #9
  • Nov 2, 2018 7:50am Nov 2, 2018 7:50am
Why not give a new focus: how a trader can earn money. We all are seeing that devoid of right trading style, proper money management and risk management no trader can guarantee winning trading voyage. Even all the prestigious forex forums and the active members are always giving emphasize on the fact that traders will necessitate enough trading understanding to realize success.
  • #10
  • Nov 2, 2018 7:56am Nov 2, 2018 7:56am
Just think about the market as walking through a minefield and there aren't many places mine free. What are your chances of not blowing yourself up if out of 10000 acres in that field 9900 were setup. There are so many ways to lose and so few ways to win, you have to make an extensive study of the subject to know where the mines are. And yes the reverse of a losing strategy might well be another losing strategy.
When you see it, BET big.
  • #11
  • Nov 3, 2018 12:18am Nov 3, 2018 12:18am
Quoting RemonFxTrade
JsCave i agree 100% "to be honest i believe market designed in the same way as casino just to make us loss easier than win"
yes it's just casino .. they deigned it like that.. just example easy to hit sl than tp under many excuses like spread etc ....
all i do is just see signal then put my bet and all i can do is just manipulate with MM ....
and everyone do that in way or other even those saying market is not casino...
a lot ways to manipulate MM some use increase lots others use risk:reward....
all we can do for stay alive in that casino is always expect worst...
don't expect 2 or 3 losses in row sometimes you have to expect more than that then set MM tactic that help you to survive..
  • #12
  • Nov 4, 2018 1:08am Nov 4, 2018 1:08am
First, many traders review the whole day's activity to determine a trading strategy. Money is only made on vertical movement and that is most likely to occur when the banks for the countries of your pair are open. If the banks are closed, you have no reason to be trading.

Second, I think most traders do not have a good exit strategy. From conversations and from posts, it appears many traders make up profit targets based on a made up stop loss based on a made up risk. In other words, they are not following the market to determine when to exit a trade. That means it is mostly guessing, which a recipe for emotional issues.

Reversing a losing strategy does not guarantee success, however, studying movement and patterns against your intention and against the reverse of your intention, might lead to a better strategy. My advice would be to look for candles that move price away from previous highs and lows, and then figure out how you can identify them on future trades. Good Luck.
You cannot be extraordinary by being normal
  • #13
  • Nov 22, 2018 11:19pm Nov 22, 2018 11:19pm
You don't need any strategy to lose your money and i don't think this is a good way to find out a winning strategy.
  • #14
  • Nov 23, 2018 10:04am Nov 23, 2018 10:04am
You don't have to make any kind of effort to lose money, just ignore all strategies and open positions randomly,i.e. gamble.
  • #15
  • Nov 24, 2018 12:12am Nov 24, 2018 12:12am
Quoting RemonFxTrade
JsCave i agree 100% "to be honest i believe market designed in the same way as casino just to make us loss easier than win"
Basically, big players know the sentiment of retails traders (mostly); that’s why you faced this kind of scenarios!
  • #16
  • Nov 24, 2018 4:08am Nov 24, 2018 4:08am
Any kinds of trading strategy can be a reason for losing money,
if you don’t know how to manage money.
  • #17
  • Dec 8, 2018 7:38am Dec 8, 2018 7:38am
Quoting AdamCrist
Any kinds of trading strategy can be a reason for losing money, if you don’t know how to manage money.
Wouldn't money management be part of the strategy?
  • #18
  • Dec 14, 2018 8:35pm Dec 14, 2018 8:35pm
There are some strategies that you can choose on your way. But not all of the strategies are equal in all markets.
  • #19
  • Dec 14, 2018 9:10pm Dec 14, 2018 9:10pm
Market moves at random most of the time , so same strategy for all time will not works at all , so it is more appropriate to develop our trading strategy by regular practice.
  • #20
  • Oct 30, 2020 1:56pm Oct 30, 2020 1:56pm
Loosing money in the Forex market is a common thing. If you want to make a good trading career in this market, you have to make a plan to deal with the losses.
0 traders viewing now