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Why 99% of traders lose money

  • #241
  • Nov 18, 2019 9:41am Nov 18, 2019 9:41am
Best example of a prayer who want sell new ones not to scalp. Scalping is bad, let your fingers from it. Just move through your minute charts to minimum H4, daily and you as rookie secure. Blabla ...
Wide spreaded misleading formulas. First check what can you invest of time for trading and pick the timeframe that suits it. If you have time to watch some hours, why not select the minute chart?
I have also in the rookie corner start a thread and we collect some really great insights trading also the minute chart. Have a look.
Perfection is the enemy of good enough!
  • #242
  • Nov 19, 2019 6:50am Nov 19, 2019 6:50am
This thread is why 99% of traders are losing.

I made my point that one of the main reasons is overtrading. That is indesputable, whatever some troll who pops up uninvited and says to the contrary!
This stems mainly from the mistaken belief that scalping 5 - 8 pips (or even less!) twenty times is better or just as good as one 100 pip trade or even two 50 pip trades. Of course what inevitably happens to the scalper is that by the fifth trade you are already down 10 - 20 pips and desperately trying to recover! You over-leverage and bang - your account is gone.

The only way to stop this vicious and never ending circle of loss is to CHANGE one's mental attitude and approach. Be determined to LOVE a trade when it's in a green and HOLD it open as long as possible and HATE a trade that goes more then a few pips into the red. Close it immediately - if it does go back in the direction you thought, you can always re-enter but if you add to a losing trade or hold it in the vain hope that the direction will change you have began sliding down that slippery slope!

Preserving the bulk of one's trading account has to be the goal at ALL times. As that video above says, the market will be open the next day and the next day and there will ALWAYS be another opportunity. That is a mental thing too. Don't "revenge trade" because you'll lose - guaranteed!!
  • #243
  • Nov 19, 2019 7:58am Nov 19, 2019 7:58am
Quoting Mtinifx
This thread is why 99% of traders are losing. I made my point that one of the main reasons is overtrading. That is indesputable, whatever some troll who pops up uninvited and says to the contrary! This stems mainly from the mistaken belief that scalping 5 - 8 pips (or even less!) twenty times is better or just as good as one 100 pip trade or even two 50 pip trades. Of course what inevitably happens to the scalper is that by the fifth trade you are already down 10 - 20 pips and desperately trying to recover! You over-leverage and bang - your account...


100% true
  • #244
  • Nov 20, 2019 6:26am Nov 20, 2019 6:26am
Quoting allinazi
{quote} 100% true
Thanks allinazi

Yes it certainly is. I can talk from hard experience and I think that experience is the best teacher!

To stop losing I think the very first thing one has to do is to stop pleasing the market, the banks and your broker. What do they want you to do? Yep, they want you to trade as much as possible! Of course the more you trade, the more a certain ugly characteristic or habit begins to take hold. What is that? It is the GAMBLING HABIT! The more you trade and especially if losses take hold, the more you start believing that a certain setup is valid! The gambling habit is beginning to take hold. And do gamblers ever win? No they don't. Very, very rarely!! And the market illusion is FULL of "valid" setups! But of course there are very FEW valid setups because entering trades willy nilly will result in loss. The forex market is NOT a level playing field and as soon as people wake up and realise that, the sooner you are on the path to maybe becaoming successful.

The solution? Well you firstly have totally change your mental approach, NOT your system! I think most of us have fairly good technical systems that show up good trading opportunities. Be TOTALLY CONVINCED that opening that trade is the right thing to do and it MUST be in credit from the word go!

Now, secondly, this is the important part: if you look at the history you'll see something very interesting. Time and time again at certain times of the day, good trading opportunities appear. This is not random - it is because the smart money tends to move the market at certain times of the day. So my point is guys, why bother to attempt to trade or even have your charts open (so that you're not tempted) at any other time. If you can make good pips and maybe a good living by maybe trading just 1 or 2 hours a day (thus greatly reducing your stress levels!), why on earth look at the charts and feed the GAMBLING habit by trading at times when the market becomes incredibly volatile and indecisive and when the big boys are GUNNING the smaller players??

In future posts I will illustrate what I'm talking about by using actual charts.
  • #245
  • Nov 20, 2019 6:35am Nov 20, 2019 6:35am
Quoting Mtinifx
{quote} Thanks allinazi Yes it certainly is. I can talk from hard experience and I think that experience is the best teacher! To stop losing I think the very first thing one has to do is to stop pleasing the market, the banks and your broker. What do they want you to do? Yep, they want you to trade as much as possible! Of course the more you trade, the more a certain ugly characteristic or habit begins to take hold. What is that? It is the GAMBLING HABIT! The more you trade and especially if losses take hold, the more you start believing that a...


yep and me 2 i have been through that gambling phase and "scalping" etc when i move to high trame hold style my results improved. so im 100% behind you there
  • #246
  • Nov 20, 2019 6:59am Nov 20, 2019 6:59am
Quoting allinazi
{quote} yep and me 2 i have been through that gambling phase and "scalping" etc when i move to high trame hold style my results improved. so im 100% behind you there
Just saw your TE and have to say great trading, well done indeed and point proved I suppose!

I have subscribed to your channel - will try to check in now and then - great trade on GBPAUD too!
  • #247
  • Nov 20, 2019 9:45am Nov 20, 2019 9:45am
It is easy to call scalping as gambling if have no clue how to scalp. For this situation better stay away for sure. It is not only the scalping for loosing money, that is false. In every time period you have loosing traders, also if they work on daily or weekly basis. But who cares? Only thing that can i give new ones is to give not most on the old stories and have one point eliminate that will you make loosing. If you able to scalp and are good in doing it, why break it, only why some crap around it?
Perfection is the enemy of good enough!
  • #248
  • Nov 21, 2019 1:50am Nov 21, 2019 1:50am
Quoting MichaelSch
It is easy to call scalping as gambling if have no clue how to scalp. For this situation better stay away for sure. It is not only the scalping for loosing money, that is false. In every time period you have loosing traders, also if they work on daily or weekly basis. But who cares? Only thing that can i give new ones is to give not most on the old stories and have one point eliminate that will you make loosing. If you able to scalp and are good in doing it, why break it, only why some crap around it?

just talking from MY experience here ... when im streaming and i have struggling traders come on they are scalpers i have yet to see someone come on and say im doing well im a scalper..
Anyone i know (including my mentors) who are successful are high TF traders with a swing attitude .

I never understood the obsession with newbies wanting to scalp... is it they want action? they want involved?
or is pure human nature, we are taught work make money, the longer you work the more money you make? we are not taught to sit on our hands and do nothing to make money

i dont know just some thoughts
  • #249
  • Nov 22, 2019 12:55am Nov 22, 2019 12:55am
Losses stem from too frequent transactions. To reduce the frequency of operations, trades that make money should not be sold easily. Lost transactions should be sold as soon as possible.
  • #250
  • Nov 24, 2019 10:12am Nov 24, 2019 10:12am
They also stem from not knowing how to trade and not sticking properly to one's strategy.
  • #251
  • Nov 24, 2019 11:34am Nov 24, 2019 11:34am
.... i wil answer another time this time with a question.
Why so many not start with the real basic in the first days? Why take not the time to explore by own what the chart is providing, before take ready mixed soup?
The failure is often a strange combination of many several things. Bad money management, misleading informations, do not reflect market prayer, fear because not cleared the own way in the very first days ...
Perfection is the enemy of good enough!
  • #252
  • Nov 24, 2019 2:58pm Nov 24, 2019 2:58pm
Guys read this PDF

I found it on another thread but I have to say that he makes some excellent points. Its true that there is often a number of factors that cause a trader to lose. He examines them in depth.

One other point which I think is very relevant as to why traders fail and that is that they spend very little time analysing and understand the structure of the market and why, how and when it moves. It's vital to understand the human profit/greed motivation behind market movement - banks want to buy and sell at the best price and will sometimes spend days accumulating liquidity. Often the only way to recognise that a trend has started is higher highs or lower lows. Thus patience is a vital quality that most small traders simply lack or fail to cultivate. Loss is usually the result!
Attached File(s)
File Type: pdf The Top Ten Mistakes Forex Traders Make.pdf   782 KB | 629 downloads
  • #253
  • Nov 25, 2019 2:33am Nov 25, 2019 2:33am
Quoting Mtinifx
This thread is why 99% of traders are losing. I made my point that one of the main reasons is overtrading. That is indesputable, whatever some troll who pops up uninvited and says to the contrary! This stems mainly from the mistaken belief that scalping 5 - 8 pips (or even less!) twenty times is better or just as good as one 100 pip trade or even two 50 pip trades. Of course what inevitably happens to the scalper is that by the fifth trade you are already down 10 - 20 pips and desperately trying to recover! You over-leverage and bang - your account...
its a good summary with nice detail, thanks for your nice post.
  • #254
  • Nov 26, 2019 1:09am Nov 26, 2019 1:09am
Quoting Jeremy88
{quote} Good comparison. There are also more such examples. The most important thought in your considerations it is that in financial market trading are only winners and losers. Either you are rich or poor. There are no middle class.
yes , there is no middle class , its type of do or die , if you have sufficient knowledge and experience then you are able to bring good profit with contently, if not then ready to loss whole equity. thats all.
  • #255
  • Nov 26, 2019 4:00am Nov 26, 2019 4:00am
i personally have experience losing money as this is the fourth account i have funded. And i came to realize that i was losing money, not because my trading system was flawed but because i cut my trades 2-5 pips into profits but let my loses run into 20+ pips. well, you don't have to know rocket science to predict the outcome of my accounts!! but now i have my emotions in check but scared of taking trades.
  • #256
  • Nov 26, 2019 5:55am Nov 26, 2019 5:55am
Quoting Mgig
i personally have experience losing money as this is the fourth account i have funded. And i came to realize that i was losing money, not because my trading system was flawed but because i cut my trades 2-5 pips into profits but let my loses run into 20+ pips. well, you don't have to know rocket science to predict the outcome of my accounts!! but now i have my emotions in check but scared of taking trades.
Depressingly familiar scenario to the bulk of us Mgig. The problem is that this scenario can repeat itself over a period of years not just months. In my view the market conditions these days (algorithms, bank and broker tactics, etc) just about preclude scalping as a profitable system. Sudden price spikes and changes in direction are NOT random. They are designed to knock out smaller players! So one simply HAS to look for and retain trades for as long as possible. Of course one never wants to let a winning trade turn into a losing trade but setting a BE stop and then moving the stop as the trade progresses is a far better option in my humble opinion.

What the guy in the PDF above says about having a trading plan I think makes a lot of sense because it's the mental battle that one has to win FIRST before one ever can become a successful trader. The way I see it as working is to actually allow oneself say only 6 trades a week. Sounds awfully little doesn't it and yet that is all the trading that PRO traders might trade in a week! Along with the 6 trades you set a target of say 50 pips (in the beginning anyway, and increase that target as you become more successful). So you have to make 50 pips in 6 trades. If you don't do 50 pips in the week don't worry, the market is not going anywhere! STOP trading and try again the next week. But NEVER increase the number of trades! Yes it's really a mental thing. You are now concentrating on pips not trades.

You mention that you're happy with your trading system but are you trying to catch tops and bottoms? It's a favourite type of system amongst retail traders but it is doomed to failure especially over the long term! Do not try to catch tops and bottoms. You need a system that provides confirmation of direction before entry not a vain hope that the direction is going to change! Most times the market is simply correcting but the trend direction is not changing. I'm not keen on trading corrections - sometimes they can be violent and excellent but on the balance of probabilities they are usually choppy and dangerous. Any successful and good trading system must reveal trades that on the balance of probabilities are in favour of the trader NOT in favour of the market!

If you want I can post a few example charts
  • #257
  • Nov 26, 2019 8:58am Nov 26, 2019 8:58am
Quoting Mgig
i personally have experience losing money as this is the fourth account i have funded. And i came to realize that i was losing money, not because my trading system was flawed but because i cut my trades 2-5 pips into profits but let my loses run into 20+ pips. well, you don't have to know rocket science to predict the outcome of my accounts!! but now i have my emotions in check but scared of taking trades.
Nice to see; you have learned from your mistakes! Great job. But when you decided to go for live trading (in the 1st time) and why?
  • #258
  • Nov 26, 2019 1:04pm Nov 26, 2019 1:04pm
I think the transition from trading a demo account to trading a live account is also a big problem for many. when trading demo one has no fear thus you can accomplish anything! Also starting with a 100000 dollar demo account is crazy. Few are going to start trading with that kind of money so the relationship with real and imaginary is huge. Far better to start trading with a real account and simply trade micro lots. At least one is getting a feel of what live trading is all about!

Another big thing which causes loss is single time frame trading (usually it's the lower time frames because they are perceived as producing quick profits - but that is an illusion!!). You have to use a MULTI TIME FRAME approach. The higher time frame is needed to give a perspective of direction whereas the lower time frame will show up good entry and exit levels.
  • #259
  • Nov 26, 2019 1:14pm Nov 26, 2019 1:14pm
Here is a great video I just received about position trading vs day trading. Really interesting!

https://trading-university.tv/simon-...63495723455-2/
  • #260
  • Nov 26, 2019 3:07pm Nov 26, 2019 3:07pm
Quoting Mtinifx
I think the transition from trading a demo account to trading a live account is also a big problem for many. when trading demo one has no fear thus you can accomplish anything! Also starting with a 100000 dollar demo account is crazy. Few are going to start trading with that kind of money so the relationship with real and imaginary is huge. Far better to start trading with a real account and simply trade micro lots. At least one is getting a feel of what live trading is all about! Another big thing which causes loss is single time frame trading...
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