Why 99% of traders lose money | Page 17 | Forex Factory

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Why 99% of traders lose money

  • #321
  • Apr 24, 2020 10:14am Apr 24, 2020 10:14am
Quoting Awasim
Most of the traders lose them because they are inexperienced, have no knowledge, no discipline and no control over their emotions. They want to become rich quickly and in this process and greed of making a quick profit they often lose all their money and hate trading and leave the business.
the message you have done is very common but its real true fact , beginners this kind of attitude is very common , i think from all mistake i think emotions is the foremost reason why most traders lose from this stock market.
  • #322
  • Apr 25, 2020 11:18am Apr 25, 2020 11:18am
Emotions plus lack of knowledge and experience. I don't think those should be underestimated.
  • #323
  • Apr 25, 2020 2:28pm Apr 25, 2020 2:28pm
lack of knowledge is very common, what you think Mate the traders who is completely professional in Forex, he has fill knowledge ?
  • #324
  • Apr 25, 2020 11:35pm Apr 25, 2020 11:35pm
Quoting HeyYou
more than that lose money, according to brokers. I am an employee but I know how to run a small business. I would say that trading is the easiest business out there, because all we have to manage is an ACCOUNT lol. all this is in theory, because >99% of people make huge deposits during the learning process.
and after this huge deposit wipe out.
deposit again and over trade to take revenge
  • #325
  • Apr 26, 2020 6:49am Apr 26, 2020 6:49am
Trader losses are mainly located partially cheated by other traders and so on.
  • #326
  • May 1, 2020 11:14am May 1, 2020 11:14am
That's really very important information for new traders like us.
  • #327
  • May 1, 2020 11:38am May 1, 2020 11:38am
I'm not sure what that means but I'm sorry to say that retail traders have nothing to do with price movement thus are not eating anyone elses money!
The big boys (mainly a consortium of five banks) move the price. The problem for them and for us is that that they constantly have to look for liquidity otherwise a large move in one direction is actually costing more and more to sustain.

The important thing to understand is that those periods when price action is moving sideways or even counter to the trend does NOT mean that the trend is changing. Small traders are constantly looking for reversals and getting eaten is most always the result!
  • #328
  • May 1, 2020 11:46am May 1, 2020 11:46am
Here is a good example - Gold from yesterday NY open. The price dropped quickly to 1700 and then proceeded to spend 3 hours ranging. What was happening? Well they were sucking in buyers of course! Many probably thought that 1700 was a strong support so the price had to go up. What happened? Well the chart tells the sad story
Attached Image (click to enlarge)
Click to Enlarge Name: XAUUSD.rM15.png Size: 33 KB
  • #329
  • May 2, 2020 12:17am May 2, 2020 12:17am
The price will always move in the direction that causes the largest financial damage to the greatest number of (retail) accounts.
  • #330
  • May 2, 2020 5:40am May 2, 2020 5:40am
Yes but that is the way the market works. Only by taking money from other traders large and small is how the bigger players (banks, etc) make a profit for their institution. It's nothing personal although at times it seems that it is when one seems to be constantly hunted down! This occurs more often when small traders are trying to scalp the lower time frames. On the M30 chart below the trend is strong and firm. However the shaded section shown on the M1 chart paints a totally different picture. So the lesson is that trading higher time frame is preferable. Otherwise the chance of loss is so much higher. The banks don't scalp!
So many small retail traders are trying to scalp off 5-8 pips all the time. This simply doesn't work out in the long term and sooner or later your trading account is blown

However at times when sentiment is driving the price, like yesterday (Euro was very strong whilst AUD/NZD were very weak), the powerful forces that are driving the trend are too strong for stop hunting in any meaningful way which the M30 chart below also illustrates.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: EURNZD.rM30.png Size: 29 KB
Click to Enlarge Name: EURNZD.rM1.png Size: 45 KB
  • #331
  • May 2, 2020 1:27pm May 2, 2020 1:27pm
Quoting Mingary
The price will always move in the direction that causes the largest financial damage to the greatest number of (retail) accounts.
If so, then there's the Holy Grail: https://www.myfxbook.com/en/community/outlook
It's probably not that simple.
  • #332
  • May 2, 2020 4:38pm May 2, 2020 4:38pm
Actually it's 99.6% of people that lose money in Retail Forex. Those are official stats.

0.4% of people (ie brokers/and hedge funds) earn what 99.6% of people leave in the table.

Putting your money in retail forex brokers (those that put ads everywhere, and pay up to 10K per month to place a banner in a forum) is the same as putting money in Online Casinos.

I am not saying you cannot make money with Forex. In fact, you can make a lot of money with Forex. But not trying to trade it.

I know a guy who knows a guy that makes a very nice income with Forex... But he doesn't make a single trade, ever. Go figure.
The Black Swan: The Impact of the Highly Improbable
  • #333
  • May 3, 2020 1:27am May 3, 2020 1:27am
most of the forex broker are able to manipulate/hold real market price to certain degree, these are known as "B Book" broker. to beat the oods, most of the people didnt know they need 3000 pips drawdown, so that the degree of manipulation by broker is out of their range

lets take example of 0.10 cents x 3000 pips = US$300 dollar, assume each trade you only risk 10% of the balance. that means minimum account balance in your account should be at least USD$3k, if you using cents account would be $300

only trade major and minor pairs, dont ever trade exotics pairs as market is illiquid. if you are able to sustain 3000 pips drawdown without affecting a lot on your acc balance, you should be milk some profit from the market. for those wanna do scalping/very short term trade, use broker that actually pass your order to the liquidity provider, for eg interactive broker is the only legit firm that i know so far
  • #334
  • May 3, 2020 11:05am May 3, 2020 11:05am
Yes stop hunting is rife - more so I'm afraid on the popular trading pairs like EURUSD. In fact I would not advise trading the popular pairs that the crowd are trading. Why do I say that? Well' just take a look at the attached EURUSD 1 hour chart over the last two week period. Enough to give any serious trader nightmares! Constant spiky price movement, candles constantly breaking through the ema lines. This sort of jerky price action denotes active stop hunting. Very common on this pair because there are an awful lot of stops to hunt!!

Better to concentrate on the non-exotic crosses like EURNZD for instance - plenty to chose from but one needs to check historic price action first!
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD.rH1.png Size: 51 KB
  • #335
  • May 3, 2020 11:11am May 3, 2020 11:11am
Looking at GBPUSD, even worse - Only 21st April was a nice trading day. Perhaps the afternoon of the 30th but spikes are very difficult to trade. That's one day in two weeks!!

The lesson is clear
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD.rH1.png Size: 55 KB
  • #336
  • May 4, 2020 5:59am May 4, 2020 5:59am
i am using right now scalping by EUR/USD , even though sometimes it causes a great risk and losses but its profitable overall.
  • #337
  • May 5, 2020 10:17am May 5, 2020 10:17am
Quoting AlexImam
i am using right now scalping by EUR/USD , even though sometimes it causes a great risk and losses but its profitable overall.
How many trades have you done so far to claim you're still profitable? I've never met day traders who was in green on the distance of 500-600 trades.
  • #338
  • May 5, 2020 10:56am May 5, 2020 10:56am
Well said
And that can be 2 or 3 days trading - very hard to separate scalping from gambling. Well that's my experience anyway
  • #339
  • May 5, 2020 12:00pm May 5, 2020 12:00pm
Quoting Mingary
The price will always move in the direction that causes the largest financial damage to the greatest number of (retail) accounts.
How do you substantiate that statement?
Gone to a better place
  • #340
  • Edited 2:53am May 6, 2020 1:16am | Edited 2:53am
Quoting smikester
{quote} How do you substantiate that statement?
Is this a test ? (;
I am surprised you have to ask.

A professional in the field worth his/her salt would know that already.
How can anyone not know one of the fundamental principles and hope to make money in retail forex ?
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