Why 99% of traders lose money | Page 11 | Forex Factory

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Why 99% of traders lose money

  • #201
  • Aug 29, 2019 4:46am Aug 29, 2019 4:46am
The newcomers cannot avoid losses by their greediness and emotions, it’s true. But the regular traders cannot come out their losses because of having most powerful risk management and MM. they always fours on just acquiring good trading knowledge . of course we have to do it. But besides it must be focused on risk managing approach if we want to avoid losses.

  • #202
  • Aug 29, 2019 7:13am Aug 29, 2019 7:13am
agree with you , its important to focus on acquiring good knowledge and experience, but in practical despite of having most powerful knowledge trading can be useless if there is no regular practice.
  • #203
  • Aug 29, 2019 7:41am Aug 29, 2019 7:41am
In my opinion, most traders don't spend the time to learn. Let's face it, trading is a tough business. There is many aspects a trader Must master in order to be successful, the trader needs to master him/herself to control their own emotions. The trader must learn basic forex. The trader must understand market psychology, And the biggest aspect of trading a trader must master is Money Management. I know most of these are discussed all the time here on FF. There probably are many other aspects a trader needs to be successful, but these are the major ones.

Trader psychology is the biggest
Money management is the next
Forex basics 3rd
Market psychology 4th.

A trader is never done learning. He must evolve with the markets, and evolve within him/herself.
These are the reason why new traders lose, they don't take the time to learn and master these techniques.

Nolo-
  • #204
  • Aug 29, 2019 9:11am Aug 29, 2019 9:11am
yes it is. most traders are not willing to learn by passing a long time , they always try to acquire knowledge within very short time. practically its not possible.
  • #205
  • Sep 1, 2019 10:48pm Sep 1, 2019 10:48pm
Thanks for all your replies, i can see how helpful is everyone here. i will need to practice more mainly on mentality.
  • #206
  • Sep 3, 2019 10:30am Sep 3, 2019 10:30am
A trader must understand risk. How much do I as the trader, how much do I risk per trade. It's not always about where you enter a trade, It's about how you exit a trade, its about how you manage the trade.
When I enter a trade I know exactly where to exit if the trade goes bad. I know exactly what I will do when the trade goes into profit. The only external factors that might deviate from my trading is unexpectant news. I.e. The Fed Chairman wants to do a emergency interest rate hike... I might then exit the trade all together so I am not exposed to unnecessary risk. This game is all about how you manage your risk.

Food for thought
-Nolo
  • #207
  • Sep 4, 2019 4:11am Sep 4, 2019 4:11am
Quoting Nolo
In my opinion, most traders don't spend the time to learn. Let's face it, trading is a tough business. There is many aspects a trader Must master in order to be successful, the trader needs to master him/herself to control their own emotions. The trader must learn basic forex. The trader must understand market psychology, And the biggest aspect of trading a trader must master is Money Management. I know most of these are discussed all the time here on FF. There probably are many other aspects a trader needs to be successful, but these are the major...
Hi Nolo,

I totally agree with you that most traders don't spend enough time for learn and practice. Reading books or following successful traders will not make anyone a profitable trader, but continuous improvement through regular trading. Many believe that earning money on the forex market is quick and easy.

Can you explain the concept of market psychology? Do you mean crowd psychology, market mechanisms or something else?
  • #208
  • Sep 4, 2019 9:18am Sep 4, 2019 9:18am
yes 99% lose money and the rest of 1% will lose too in the long term. some folks here are "profitable" because they trade higher time frames like daily. thats a few hundreds trades per year right ? what are the chances to be profitable on such a small number of trades ? pretty high id say. even if one is really profitable no broker would take his trades with leverage.
  • #209
  • Sep 6, 2019 12:48am Sep 6, 2019 12:48am
I believe, trading is an art. The results of your trading depends on your trading skills , knowledge and experience. But people actually spend less time learning and are more or less, impatient to start trading due to the lure of profits. This way they do not spend a good time understanding the concepts and ways of trading. Due to such reasons they are unable to close profitable deals as they trade with less knowledge.
  • #210
  • Sep 6, 2019 3:57am Sep 6, 2019 3:57am
Quoting martin15
I believe, trading is an art. The results of your trading depends on your trading skills , knowledge and experience. But people actually spend less time learning and are more or less, impatient to start trading due to the lure of profits. This way they do not spend a good time understanding the concepts and ways of trading. Due to such reasons they are unable to close profitable deals as they trade with less knowledge.
Yeah, I'd rather say that trading is very similar to a sport. You must be very good in trading to winning. This is well illustrated at this picture:
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 362 KB
  • #211
  • Sep 7, 2019 4:47am Sep 7, 2019 4:47am
Quoting regele
yes 99% lose money and the rest of 1% will lose too in the long term. some folks here are "profitable" because they trade higher time frames like daily. thats a few hundreds trades per year right ? what are the chances to be profitable on such a small number of trades ? pretty high id say. even if one is really profitable no broker would take his trades with leverage.
i think right now , more 10% traders who can bring profit consistently. its a very old statistic that 99% loser in Forex market.
  • #212
  • Sep 9, 2019 1:01pm Sep 9, 2019 1:01pm
in my opinion people lose money not because of a bad strategy, although I don't mean profitable strategies are everywhere! you may have heard story of Richard Dennis, who borrowes 1600$ and made 200 million dollars in ten years. he had a good strategy but the strategy stopped working someday, he lost a lot and he stopped trading. he later started trading again but probably made changes to his strategy. sometimes strategies stop working but most of the time is your brain that does it to you. you have a good stategy which gives you a decent profit, but you want more and more money in a short period of time, so you turn to dangerous money management techniques like Martingale. for a short period of time they give you the big money you seek, but eventually they blow your account, and that might be the end of your trading career.
  • #213
  • Sep 23, 2019 1:55am Sep 23, 2019 1:55am
trading strategy is the foremost way to bring profit but the result any kind of trading strategy is just all about temporary session, there is no trading approach which work for a long time.
  • #214
  • Sep 23, 2019 6:22am Sep 23, 2019 6:22am
Quoting MarkFxAnde
trading strategy is the foremost way to bring profit but the result any kind of trading strategy is just all about temporary session, there is no trading approach which work for a long time.
Well said, no trading strategy is sure shot and definetly would not work for a long time, hit and trial always goes on
  • #215
  • Sep 23, 2019 6:56am Sep 23, 2019 6:56am
Losses will occur. Period. From day one I learned that risk management and capital preservation are key to success and as a result of keeping the above mentioned as top priorities in my trading, the losses I've experienced have not blown my account. If a trade doesn't fit my risk profile, I won't take it, simple as that. Chasing money gets traders in trouble.
  • #216
  • Sep 24, 2019 10:09am Sep 24, 2019 10:09am
I agree. One should always go into trading with that thought in mind - losses are inevitable. If you harbour any illusions that you can trade without them you'd just lose all your investment eventually.
  • #217
  • Sep 24, 2019 8:43pm Sep 24, 2019 8:43pm
Losses are tough to handle. You win or u lose. If you can control your emotion and dont be stressed out you will be fine.
  • #218
  • Sep 25, 2019 7:49am Sep 25, 2019 7:49am
Quoting Darkmidnight
Losses are tough to handle. You win or u lose. If you can control your emotion and dont be stressed out you will be fine.
Basically; novice traders are unable to control their emotions since; they are the new player in this trading sector! It takes time to learn Forex!
  • #219
  • Oct 5, 2019 11:43am Oct 5, 2019 11:43am
I think people lose money in forex because they don’t have realistic goals. They seek to double their account in a month, each month for a long period. So when they find a logical and good strategy, they don’t like it because it doesn’t get them to their goal. So they may use stupid methods and risk high amount to get to their desired figures. And that leads to self-destruction. Instead of learning and experiencing the market, they spend their time searching for something better which they never find.
  • #220
  • Oct 5, 2019 1:02pm Oct 5, 2019 1:02pm
That is true. Newbie traders especially are greedy and they have been led on by a lot of unethical advertising, so they have a lot of unrealistic expectations.
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