Why do 95% of traders lose? | Page 8 | Forex Factory

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Why do 95% of traders lose?

  • #141
  • Dec 13, 2019 10:13am Dec 13, 2019 10:13am
The sisters Pareidolia and Apophenia will never let you win and they have never been defeated.
  • #142
  • Jan 3, 2020 7:35am Jan 3, 2020 7:35am
Quoting HajiMohsin
practice is everything but difficult to maintain it consistently, those who are capable only they can be successful at any sectors.
Practice is important; I see new traders judge their trading system too early; it is another reason behind this popular statistic!
  • #143
  • Edited 12:21pm Jan 4, 2020 11:23am | Edited 12:21pm
Quoting Mingary
The sisters Pareidolia and Apophenia will never let you win and they have never been defeated.
You sound like you have been through some hard times trading.

Here is the way I look at it. There is no doubt, people, out there are making a living from trading. Not merely the so-called 'Elite' but common people like you and me.

Now if someone isn't trading successfully, then it would be wise to seek these successful traders out to find out what they are doing to win. Then follow their pattern and perhaps improve on it if possible, and thus you will become a consistently profitable trader just like they are.

Don't give up!
Learn from your mistakes and march on.
  • #144
  • Jan 4, 2020 1:42pm Jan 4, 2020 1:42pm
Quoting here2there
{quote} You sound like you have been through some hard times trading. Here is the way I look at it. There is no doubt, people, out there are making a living from trading. Not merely the so-called 'Elite' but common people like you and me. Now if someone isn't trading successfully, then it would be wise to seek these successful traders out to find out what they are doing to win. Then follow their pattern and perhaps improve on it if possible, and thus you will become a consistently profitable trader just like they are. Don't give up!
I got your point; but to be honest it’s not easy to find out a consistent performer.
  • #145
  • Jan 4, 2020 3:02pm Jan 4, 2020 3:02pm
Quoting ZikriIrfan
{quote} I got your point; but to be honest it’s not easy to find out a consistent performer.
Learn as much as you can about basing trades on Price, Volume, and Momentum. And patiently wait for new highs and new lows and observe what happens when price reaches them.

Use MT4 strategy tester in visual mode to study the behavior of these things.
Learn from your mistakes and march on.
  • #146
  • Edited 5:05am Jan 5, 2020 4:20am | Edited 5:05am
Quoting here2there
{quote} You sound like you have been through some hard times trading. Here is the way I look at it. There is no doubt, people, out there are making a living from trading. Not merely the so-called 'Elite' but common people like you and me. Now if someone isn't trading successfully, then it would be wise to seek these successful traders out to find out what they are doing to win. Then follow their pattern and perhaps improve on it if possible, and thus you will become a consistently profitable trader just like they are. Don't give up!
This is not the way to look at it.
In reality quite the extreme opposite.
Rather than explain I will go to the core issue: If somehow you think you should try retail forex, do not, absolutely do not, never ever give any money to any "successful trader" that is claiming to teach you a money making method (the same goes for any retail forex products and services that you think you should buy). You must require a "success guaranty" and have it enforced with a legal contract and with penalties in case of failure, in addition to a full refund.
  • #147
  • Jan 5, 2020 7:23am Jan 5, 2020 7:23am
Quoting Mingary
{quote} This is not the way to look at it. In reality quite the extreme opposite. Rather than explain I will go to the core issue: If somehow you think you should try retail forex, do not, absolutely do not, never ever give any money to any "successful trader" that is claiming to teach you a money making method (the same goes for any retail forex products and services that you think you should buy). You must require a "success guaranty" and have it enforced with a legal contract and with penalties in case of failure, in addition to a full refund....
Indeed, there are some fraudsters out there. But there are also people out there who suck at trading but don't know how badly they suck at trading. Yet they somehow believe you should pay them hundreds or even thousands of dollars to learn how to follow a sucky trading system that essentially gets you into trades too late and causes you to miss out on many trading opportunities.

I have purchased such courses. I'm not happy that I gave my money to these people, but at least I now know what doesn't work. It was all a part of the learning process; and in a strange way, it helped me to become a better trader.
Learn from your mistakes and march on.
  • #148
  • Jan 19, 2020 8:37am Jan 19, 2020 8:37am
yes, learning is the best part which can make you better trader very rapidly , but i think besides this practice is very much important, otherwise any learning approach can be useless.
  • #149
  • Jan 22, 2020 6:14am Jan 22, 2020 6:14am
I personally believe that 99.9% loose because they just not build for it and lack the skills necessary to become a pro. Doctors jobs tend to be classified as jobs that require high skills + its a high paying job yet not a lot of people can become doctor , its the same for forex
Send 10000 Random people in university to become doctor maybe 5-10 will manage to get the necessary qualification to become a doctor.
  • #150
  • Jan 26, 2020 7:38am Jan 26, 2020 7:38am
For me personally, after 11 years of trading, the biggest problem was and still is self-discipline. Just about everything else, I could figure out
  • #151
  • Jan 26, 2020 10:16pm Jan 26, 2020 10:16pm
I was a professional poker player for 8 years. If trading is anything like poker most lose the mental game first and the money game second. They either can't follow their own rules, have loose (or no) rules around money management or think too highly of themselves. People much smarter than me failed at poker regularly. When I look at the reddit forex sub, it's a bunch of get rich quick types who are trading on their phones, without stops and with way too much risk.
  • #152
  • Jan 28, 2020 9:51am Jan 28, 2020 9:51am
True. I wonder how often newbies invest a lot, lose a lot and then quit within the first year of trading.
  • #153
  • Jan 28, 2020 7:50pm Jan 28, 2020 7:50pm
Because forex trading is very very very very VERY difficult, and most people who do try it are either not smart enough or simply lack the effort.
  • #154
  • Feb 10, 2020 8:58pm Feb 10, 2020 8:58pm
Losses are high in this business because newbies are always in hurry to make profit and that is where they make mistake which turns to loss.
  • #155
  • Feb 13, 2020 10:28am Feb 13, 2020 10:28am
I agree. Having a stable psyche is just as important as striving to gain knowledge and experience.
  • #156
  • Feb 13, 2020 11:51am Feb 13, 2020 11:51am
I think the biggest factor is money management. I mean if you put all the currency pairs in 1 hat, and all the buy/sell positions in another hat and then reach into each hat and pull out a random pair and a random position, straight away you have a 50% chance of picking a winning trade. After all the market has to either go up or down...

So at worst even if they were completely guessing with pure luck they should have a 50% win rate and thus maintain their equity. So the problem is clearly money management, they over leverage and leave losing trades open far longer than winning trades.
  • #157
  • Feb 14, 2020 10:07pm Feb 14, 2020 10:07pm
Quoting Hype
I think the biggest factor is money management. I mean if you put all the currency pairs in 1 hat, and all the buy/sell positions in another hat and then reach into each hat and pull out a random pair and a random position, straight away you have a 50% chance of picking a winning trade. After all the market has to either go up or down... So at worst even if they were completely guessing with pure luck they should have a 50% win rate and thus maintain their equity. So the problem is clearly money management, they over leverage and leave losing trades...
Overestimating your odds
What the market and a carnival has in common

Inserted Video


I'll say this... when you have 95% of players that lose, no matter who is the brilliant academic, influencer, president, the church that argued versus Galileo, and all observers and inhabitants on this planet. You're describing a determined outcome of loss and not randomness. Randomness would fluctuate, either around 50% or you would actually have 97% winners at some point. What you guys have to get straight, is how to sort out what is objective to what's falsely put together to explain something. Marketing gimmicks, and magic aside-- here's a fundamental and realistic truth to all things. I don't see the 50/50 ratio used anywhere in regards to results, or how price movements distribute space. It's not an evenly put together winners and losers circle. It's an everyone's got to pay for the 3-5% who know their sh*t circle. There's other things that the market does, rather than simply go up & down. And if you're not aware of these other variables, crutches, or the gravity and the physics behind what makes it so you lose with absolute certainty, then you can't take advantage of the 3-5% attributes, which, when compounded consistently give you the overall make-up of your winning track record.

You can test what's 50/50
If I asked you to get me 1 pip or 40 pip. It will take more than two tries, and if I asked you to get those sums with no risk... you get my point.
  • #158
  • Feb 15, 2020 3:33am Feb 15, 2020 3:33am
Too bad "More than just the Above" isn't an option in the poll. Albeit all those are true, a combination of them, but that's not all the reasons why retail traders lose. Some who've traded for years on end and come to an abrupt stop never get to see the light at the end of the tunnel. Quite poetic really.
  • #159
  • Feb 22, 2020 9:22am Feb 22, 2020 9:22am
Greed and fear both have a negative effect on a trader's judgement when they are unchecked by knowledge and common sense.
  • #160
  • Feb 22, 2020 12:56pm Feb 22, 2020 12:56pm
Quoting dumbdumb01
I was a professional poker player for 8 years. If trading is anything like poker most lose the mental game first and the money game second. They either can't follow their own rules, have loose (or no) rules around money management or think too highly of themselves. People much smarter than me failed at poker regularly. When I look at the reddit forex sub, it's a bunch of get rich quick types who are trading on their phones, without stops and with way too much risk.
Who in their right mind doesn’t put in a stop loss order! No wonder they loose
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