Why you lose money and will always lose

Many people start PMing me, calling me a names, ignoring me, shouting on my page "you only critique us, give us system, holy grail of yours!". Some people just act nice and try manipulate me by sweet words or in terms of "charity" to help or give my whole lifework just like that. You people can not be successful - not that I do not wish it for you but you clearly below any chance of being successful long-term, you base on the low, like a rat of forex or someone who live in sewage. You have no hope and if you will find or do anything working long term you are king of rats for a while but when cheese is gone and system stop work you will fall back but this is less than 1% of people will experience in their life. This is most users of this forum with no self respect, full of spiritual nonsense, some kind of "success visualization" - coping tactics they can not face their failure and themselves as failure which is important to move on further from rat/sewage stage of a trader. This is starting stage. Next stage is your regular trade with some of self respect who look into moving averages, RSIs, price action all kind of nonsense and trying to make sense out of it. Those will never be successful long term, they can make some money here and there, maybe get some vacation, maybe get a new car or maybe they can spark up their financial life a bit with that approach but they will lost money long term. Those people at this stage are trapped in loop of Illusory correlation which means "tendency to see expected correlations even when they do not exist; leading people to see structure when there is none" This is you will never be succesful as such regular trader. You will call names people who point out your illusory correlation, this is another majority of this forum. Illusion will cease to be once you blow your account. Next stage is people who move in elite of traders, banks, hedge funds and people who know what they are doing - those people know the market to some extent, for some of those people market is like good friend, for some market is like family. To be on this stage you need to have proper connection which are very hard to get, you need yourself know the dots and how to connect it. I'm not doing any conspiracy thing, you doing conspiracy about this stage because you do not understand how things are and neither I but I have limited knowledge about it, behind close doors a lot can happen. If you can connect dots you may ride the train but this is not which is highest tier trader should be. Highest trader is someone who is high on morality, understands markets from the level before even price comes to existence as he knows cause and effect, have a lot of self respect, a lot of wisdom, a lot of experience and a lot of years into market. This is what people should aim and strive but only some of them, as most people will be stuck in their own limitations - but some of you, maybe less than 1% can reach this stage. Drop 100,000 people in middle of nowhere, with no food, water and in constant danger, if you can develop such perception and make thru all of this you will make in the market on that level. There is holy grail, I didn't believe it but there is holy grail, but this is not something you chase for - certain people want you to follow the non-existent holy grail with the illusion of it you randomly chase whatever the wind blows, the moment you feel the wind you think you are going for it but just be burnt like wings of wax, the close you come the light or sun, the more they dripping and melting. Holy grail is in your perception of market beyond illusory correlation, beyond indicators, beyond price actions, beyond naked trading, pattern trading, beyond anything - if you discard everything, one way or another you will get there.

By constantly having no [desire] one views its wonders;
By constantly having [desire], one views its limits.
These two have the same origin, but they differ in name;
Both are called Mystery.

It's so fulfilling to read a good book. Lao Tsu taoteching has definitely found a place in my permanents



Sang Real

So im new to stocks and forex. Well first, i was all hype about stocks, and swing trading appeals to me. Then as i research a stock is it good or bad, i found myself swimming in a pool of shit and hype. So i looked at forex and swing trading, it appeals to me much more. Yeah i can see the dangers, but to me at least its much less complex.

Ive read all the horror stories of going broke with forex or people using huge leverage and blowing up their accounts. I plan to do long swing trades, when the RSI is near the upper or lower limit, i dont even plan to touch a trade if the RSI is in the middle. I still have a lot of research and paper money trading to do, but im thinking safety before profits. Im very patient with zero greed, no gamblers mindset. so lets see.

New people have high hopes as young people but then confronted with real world it's not as in ones mind - reality checks everyone, only few shake off from their own fantasies this is when progress happens

New traders (like me especially), suffer a severe disadvantage because I do not understand what moves the market and how to react to certain outcomes.

When attempting to learn, the overflow of information out there can be both beneficial and disastrous.


Throughout my MONTHS of trading, I have been lucky to have had some good experience and have picked up two important things:

1.Trading as a means of steady income is not a painful process if you know what you are doing (most of the time, I don't know what I'm doing)

2.Trading can be a very painful process if you listen to the wrong information

It's no point to be retail trader at all unless you can beat the market but you will not do it by any methods or means that are provided in this forum or anywhere to be honest, neither price action or indicator will provide constant profit, one need to take it to next level of machine learning, math, computing and other factors - if you can not bring things on that level, one wasting time, there is no really successful retail traders out there.

The fact that most traders lose money is no longer surprising. They fail because most of their trading decisions aren't based on reliable research or proven trading methods, but on emotions, the need for entertainment and the hope of making a million dollars sitting on the couch. Most traders forget that forex trading is a profession, it requires skills that must be developed over many years. So pay attention to your investment ideas and the way you look at investment in general. Don't expect to become a millionaire by the end of the year, but keep in mind the opportunities offered by online trading. I'll write some facts that I googled about trading and bankruptcy. I hope some of you will find them interesting:
-Only 1.6% of day traders remain in profit on average at year-end.
-Profitable traders increase their trading volume more than loss-making day traders.
-Poor people tend to spend a larger share of their income on lottery participation, and their demand for lottery tickets increases as their income decreases.
-Investors whose current financial position differs significantly from their claim level buy higher-risk stocks.
-Men trade more than women, and unmarried men trade more than married men.
-Poor young men who live in cities and belong to certain minority groups invest more in lottery-like equities.

That sums up everything, one really need to be lunatic to be part of 1.6% with just learning in couple weeks some basic methods of trading

"Poor people tend to spend a larger share of their income on lottery participation, and their demand for lottery tickets increases as their income decreases."

This is a sad irony. Such behaviour defies common sense.

New traders like me understand that Forex is very easy to do and we can make a lot of profit in no time and without any hard work. But they fail and leave the market. But Forex is very risky and you do not succeed in Forex if you have no knowledge and skills and you need to hard work to keep yourself in the market and make a good profit.

Personally, I think that you will continue losing the money unless you strategize risk management and taking up and understanding the knowledge when it comes to forex trading

On point!

that's just coping strategy, if you cope with reality you will fell down even deeper

True! You mentioned two of the most important parts of trading, managing risk and knowledge. Both got good weightage in determining a trader's success.

the people who lose always , of course he or she doing same mistake again and again. generally when you do same mistake again, its not a mistake its your choice.

I think winning forex requires a lot of experience

Nope. You do not need manage money if you are winning trades, if you need manage it means you do not know what you are doing.

You are just coping with your failures while do not know what talking about.

Think less because you are not doing yourself a favor by thinking like that

Forex requires a lot of discipline which lacks in many people(even me). I would advise people to start withregular stocks before trading commodities.

Why stocks exactly? Also, what about currencies?

Everything boils down to being good at something, some people may start stocks and become good at it, certain people can do the same with forex, there is no rule but it highly dependent on person