Why Retail Traders DESERVE TO LOSE Money | Page 3 | Forex Factory

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Why Retail Traders DESERVE TO LOSE Money

  • #41
  • Mar 18, 2019 12:05pm Mar 18, 2019 12:05pm
Quoting EcoTrader
{quote} I love this pic


Yes, it is so very true.
P.S. I like your threads - too bad that FF won't let me post in them or even 'like' your posts in them !
  • #42
  • Mar 18, 2019 12:24pm Mar 18, 2019 12:24pm
Quoting ianf0ster
{quote} Yes, it is so very true. P.S. I like your threads - too bad that FF won't let me post in them or even 'like' your posts in them!
I think ff factory could do a better job of the separation and integration of commercial. Thanks for the thumbs up on the threads. Very few pay attention to fundamentals and as you probably know we have our very own conspiracy crowd that believe its baked into charts, technicals lead, its only long term... the list goes on some more. Maybe it's a good thing having ignorance so wide spread.
  • #43
  • Mar 18, 2019 12:58pm Mar 18, 2019 12:58pm
Quoting EcoTrader
{quote} I think ff factory could do a better job of the separation and integration of commercial. Thanks for the thumbs up on the threads. Very few pay attention to fundamentals and as you probably know we have our very own conspiracy crowd that believe its baked into charts, technicals lead, its only long term... the list goes on some more. Maybe it's a good thing having ignorance so wide spread.
I agree that few in retail pay enough attention to Fundamentals, but I think that can never be a good thing.
Institutional and good retail traders don't need to feed off the terrible retail traders, who in any case only trade in small size.
There is plenty of liquidity from the dumb institutional traders who should be smarter!
  • #44
  • Mar 20, 2019 8:37am Mar 20, 2019 8:37am
Key reasons why traders fail
screenshots from webinar I attended last night: https://www.forexfactory.com/showthread.php?p=12135362#post12135362
  • #45
  • Mar 22, 2019 3:06pm Mar 22, 2019 3:06pm
An email at the end of an exchange with a prospective student. To emphasise that I have no affiliations whatsoever, despite what FF think:


Attached Image (click to enlarge)
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  • #46
  • Mar 26, 2019 6:36am Mar 26, 2019 6:36am
Market participant narratives are one of the overly neglected contributors to good trading.

That vast majority of those educators I feel are worthwhile teach them in some form, but how many retail traders use them?
-Very few I suspect.

It is this area that most 'Fundamentals' traders neglect and is the main reason why some apparently identical Fundamentals based trades fail when others work.
Of course, neglecting the narrative is something that almost all 'Indicators' traders do, but in some ways they have an excuse since they believe that their (usually extensively back-fitted) indicators can tell them what is really happening in the markets - LOL!

Do you use a 'narrative'? Do you even know how to construct one?

I have been told that a comparison between narratives and back-tested indicators will be done tonight at 8pm Eastern Time.
I want to keep this thread's content separate from my other one, so if you are interested take a look there.
I expect that a recording of the webinar will be available late Wednesday or on Thursday (UK Time).
  • #47
  • Mar 26, 2019 10:42am Mar 26, 2019 10:42am
Quoting ianf0ster
I hope this tread will be provocative , honest/truthful and informative/educational. OK, so pretty lofty aims here- LOL ! I doubt if there will be much 'new' content in here, most will be recycled from my other thread if only because I don't have the time to do everything: i.e.trade, run my Self Help Group for Sharp Edge students and run 2 unique threads here on Forex Factory.
Hello there,
I will not say "deserve to lose" but I can write reason of why the majority is losing. Actually, the main reason is psychological in nature. It is really not that much about the technical skills of a trader, in most cases, it is the desire to win fast, overleverage, lack of patience and desires to trade every day. If the majority of the traders will work on their psychological aspect you will be amazed at the improvement in their trading. I am in the institutional trading for years and the key difference between the average trader and institutional is in terms of psychological aspect and in terms of risk assessment. Good traders don't trade every day and most of the days are not that tradeable. Actually, a few years ago there was an experimental test where the traders (100) received the same amount of money 100k and their only job is to define how much they will risk. Guess what, one third actually went into bankruptcy, second third was trading near the breakeven and only about 15% actually made good money and finished over 1 million. So, position sizing is crucial in successful trading.
"Buy on fear, sell on greed !!!
  • #48
  • Mar 26, 2019 1:47pm Mar 26, 2019 1:47pm
Quoting Petar_Serbia
{quote} Hello there, I will not say "deserve to lose" but I can write reason of why the majority is losing. Actually, the main reason is psychological in nature. It is really not that much about the technical skills of a trader, in most cases, it is the desire to win fast, overleverage, lack of patience and desires to trade every day. If the majority of the traders will work on their psychological aspect you will be amazed at the improvement in their trading. I am in the institutional trading for years and the key difference between the average...


Hi Peter,
While I agree that correct trade sizing is very important (though sizing too small isn't much of a problem), and that psychology is by far the most important aspect in determining trading success. Both these things are only become obvious after a trader has already learned how to trade.
Before then the lack of an objective, profitable method masks usually masks the effects of psychological problems and can mask over sized trading, if it isn't too stupidly over-sized!
  • #49
  • Mar 28, 2019 5:54am Mar 28, 2019 5:54am
Although In intend keeping the posts in my 2 threads separate, I think this one deserves to be in here too:

I feel that in the Tuesday night webinar,Ray's explanation of the studies showing that Fib numbers don't work in trading was rather confusing.

Here is my attempt at explaining it better than he did:

Attached Image (click to enlarge)
Click to Enlarge Name: Fib-Study-explained.png Size: 41 KB


If there was something special about the Fib percentages, you would expect distinct bulges showing that more successful pullbacks stopped at those 2 levels , and there are no bulges there.
Fib lovers may argue that the 61.8% is around the middle of the 'Sweet spot' range. But that range is a whole 25% wide.
  • #50
  • Mar 28, 2019 6:50am Mar 28, 2019 6:50am
Why Retail Traders DESERVE TO LOSE Money

In order to understand why, you have to consider the purpose of speculation in society

Most traders fail because it is their duty to fail. To be of benefit to a free market economy speculators must lose so that the real contributors to society (people who MAKE THINGS that are USEFUL to others) can prosper

If you are a consistent loser at trading, then congratulations, you are a valued contributor to the free market economy. Keep up the good work.
  • #51
  • Edited 5:19am Apr 1, 2019 4:54am | Edited 5:19am
Russian Troll: I just got this garbage Personal Message, you never know what will happen next in Trading or in Life!

Warning the garbage below is offensive as well as being factually wrong on all counts:

*************************************************************************
I have additional reason why I support Brexit. The muslims have reigned major states in England, isn't it? Britain needs its identity as a white Christian/Catholic country (I reckon I have heard news on Youtube that white Brits will soon be minority in England video in here m.youtube.com/watch?v=EZAiTcZcfkI ) so that the immigrants from South East Asia won't overtake your country. Or at least have a rule that the government have that only the pure original British have. Or have a strict rule on immigration. You don't want to know how a immigrant's heart is. If EU's forces Britain to have its immigration's laws obeying theirs and not creating its own's immigration laws, then that is one reason why I supported Brexit.
Overall, the original sins, other than sex and lieing, could well be cheating on school exam, and its all tricks and its all psychological tricks, as it happens on south east Asia.
***************************************************************************

I will not dignify this with a response other than one reason that Retail traders fail is ignorance,
just like the ignorance that this Troll is counting on.
  • #52
  • Edited 6:19am Apr 1, 2019 6:00am | Edited 6:19am
Quoting ianf0ster
Russian Troll: I just got this garbage Personal Message, you never know what will happen next in Trading or in Life! Warning the garbage below is offensive as well as being factually wrong on all counts: ************************************************************************* I have additional reason why I support Brexit. The muslims have reigned major states in England, isn't it? Britain needs its identity as a white Christian/Catholic country (I reckon I have heard news on Youtube that white Brits will soon be minority in England video in here...
The UK and the EU are like a frog in a pool of warm water getting hotter and hotter, as long as the water is heating slowly, the frog won't realize it's getting boiled alive until it's too late.
  • #53
  • Apr 1, 2019 9:29am Apr 1, 2019 9:29am
Quoting Jmexpat
{quote} The UK and the EU are like a frog in a pool of warm water getting hotter and hotter, as long as the water is heating slowly, the frog won't realize it's getting boiled alive until it's too late.
Why am I not surprised that you are also from Eastern Europe. Indeed, isn't Moldovia one of the main locations for Russian Trolls?
  • #54
  • Apr 1, 2019 9:54am Apr 1, 2019 9:54am
Quoting ianf0ster
{quote} Why am I not surprised that you are also from Eastern Europe. Indeed, isn't Moldovia one of the main locations for Russian Trolls?
I am not from Moldovia.
I chose "Moldovia" because it has "Mold" in it (: .. funny name for a country. A rather unfortunate english translation
  • #55
  • Apr 13, 2019 9:12am Apr 13, 2019 9:12am
Ecotrader has a good post on 'The Art of taking a Loss' in his thread (reproduced here ) with my comments in blue:

********************************************************************************
The art of taking a loss. This subject is probably the most overlooked aspect by retail traders. From what I have seen there are different camps when it comes to this.

1) wait for a set stop to be hit. - Both educator that I rate say this is the 'lazy way' or for gamblers rather than Traders.
2) use no stops and losers become investments. -This would work if only there was a market which mean reverts in a medium sized range. There is no such market - so this is account suicide!
3) have complex stacking strategies that have dozens of open trades that have no stops. - In real life a Margin Call would terminate the strategy since you don't have an infinitely large account.

I don't do any of these and I am not advocating any because its a personal choice. What I want to do however is discuss some points that you should consider. The system I built employs the same mechanism for cutting losers as it does for profit. I built it like this because the market is not rigid and you need to have the real-time feedback from the market to make an informed decision. - Real professional traders will always take their cue from the market because A). They can read the Market. And B). A pip saved is a pip earned!

A stop if hit will take away previously earned profit. Think about the ramifications of this because its a major factor in traders not being profitable. Why watch price move against you and take you out when there are clear indicators of it happening. You will often see me cutting trades sometimes minutes into a trade. I trade with momentum and if its absent I do not want to risk a full stop. This strategy means I am out sub 10 pips on most losses and this protects previously earned profits more than a stop does. I believe this strategy along with my profit taking strategy is key to my consistency. I bring in between 10 and 20 percent each month consistently and I do that by being strict on exits regardless of profit. By protecting profit and maximising profit, I am able to achieve steady and good account growth.

Spend time and consider these factors on your trading and see how you can maximise protection and profit.

The above trade management can be further improved by trading in multiple units, so that you can take partial profit at the first sign of trouble yet still keep some skin in the game if that sign of trouble was just a blip! In fact both the educators that I rate, teach entering with multiple units to enable multi-exits if required.
  • #56
  • Apr 26, 2019 11:30am Apr 26, 2019 11:30am
Warning to Asian Session traders.
Here is a link to my post in my main thread: https://www.forexfactory.com/showthr...5#post12241645
  • #57
  • Jun 10, 2019 2:54pm Jun 10, 2019 2:54pm
I hope that Ray and Compass won't be angry at me posting this marked-up diagram (Ray's diagram but with my text). His session today covered this very important point which some newer students are still struggling with:

Attached Image (click to enlarge)
Click to Enlarge Name: Commercial-vs-Typical Retail.png Size: 109 KB
  • #58
  • Oct 11, 2019 4:58am Oct 11, 2019 4:58am
Why although I'm a lousy trader, I am better than most traders ( at least more profitable)!

I'm too lazy to reproduce my post in my main thread, so here is a link:
https://www.forexfactory.com/showthr...8#post12554898
  • #59
  • Mar 14, 2020 11:58am Mar 14, 2020 11:58am
No apologies for going off topic.
Off topic, but how about instead of just making money from it.
Why not help by joining international volunteer group to stop the Covid-19 outbreak?
See this Twitter thread: https://twitter.com/yaneerbaryam/sta...67530638282752
They have a group Slack workspace, which I have joined, for organising and sharing ideas.

They are looking for organising skills, technical skills down to people to deliver food to those self isolating and vulnerable, or just people with contacts/influence to find others with skills etc.
  • #60
  • Apr 14, 2020 7:14am Apr 14, 2020 7:14am
Some of The Sharp Edge Self Help Group ( which I run for free) have been laughing about this crazy video.
This guy typifies why retail traders deserve to lose money!

https://www.youtube.com/watch?v=zZxXkscCrHM

Some observations:
1. He is trading re-tests of a round number on GBP/USD - the number being 1.2800
2. He is just showing the Daily candlestick so giving nothing away about strategy beyond let price drop below 1.28 and buy then wait for it to go into profit before immediately selling.
3. From the patterns he mentions and the TDI indicator (from Dean Malone of CompassFX) on the bottom of his chart it would appear that he has either been taught by (or just watched some videos) by Steve Mauro.
4. In the video he claims to win 7 trades in a row. What he actually does is make just 2 trades, one with 8 standard Lots and one with 6 standard lots.
His maximum Drawdown on the first trade is $500 for a $30 profit. His max Drawdown on the second trade is $256 for a profit of $48
These numbers are terrible because he has also payed a total of a 3pip spread x 14 lots = $420 in spread to make just $78.
5. He claims he can do this whole thing 8 times per day. which is extremely unlikely and even if he could do that for 1 day, he would soon get his account blown on another day.
6. Incredibly there were 46K people dumb enough to LIKE his video !
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