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Why 95% Of All Traders Fail

  • #181
  • Dec 31, 2018 12:51am Dec 31, 2018 12:51am
In my case problem was in greed.
I have a strategy that is good, based on divergence and PA, and trades are closed in profit whenever I follow strategy steps.
But when I become greedy then I open a trade without a plan and, mostly, with high leverage. After that I blow account in a day.
Everything is gone in one day, everything I have build for a long period.

And I still did not quit. I am still reading and learning. I want to succeed in Forex. You have to be persistent in learning to become better and it will pay off.
  • #182
  • Dec 31, 2018 9:54am Dec 31, 2018 9:54am
Quoting Frano
In my case problem was in greed. I have a strategy that is good, based on divergence and PA, and trades are closed in profit whenever I follow strategy steps. But when I become greedy then I open a trade without a plan and, mostly, with high leverage. After that I blow account in a day. Everything is gone in one day, everything I have build for a long period. And I still did not quit. I am still reading and learning. I want to succeed in Forex. You have to be persistent in learning to become better and it will pay off.
No doubt, greed is one of the most common problems here! By the way, make more practice & more & more trades in demo, I’m also working with PA strategy, hope for the best.
  • #183
  • Jan 7, 2019 7:15am Jan 7, 2019 7:15am
i think that is because the probability of forex is not true if it's 50:50, because there are spreads, commissions and so on
if it's true 50:50 there must be a lot of success in this business

that's my answer to why
  • #184
  • Jan 7, 2019 10:05am Jan 7, 2019 10:05am
I am not sure what you mean, are you referring to the probability for profit?
  • #185
  • Jan 7, 2019 9:57pm Jan 7, 2019 9:57pm
The main reason I believe many traders originally fail is due to not diversifying their portfolio. Best is by diversifying with stocks, ETFs, and precious metals!
  • #186
  • Jan 21, 2019 5:32am Jan 21, 2019 5:32am
where is the best place to gain knowledge?

What books or video courses are recommended?

Im in for the long haul, and want to trade like a robot, disciplined, perfectly timed, strict.

However I dodnt even know how to use the trading software let alone work out a strat so I really am below basic level.
  • #187
  • Jan 30, 2019 8:42am Jan 30, 2019 8:42am
Quoting NorthantsPet
where is the best place to gain knowledge?
Go through it step by step:

 

  1. https://en.wikipedia.org/wiki/Foreign_exchange_market
  2. http://blog.instaforex.com/2012/10/1...th-instaforex/
  3. https://www.babypips.com/learn/forex
  4. Than learn to choose a good ECN broker
  5. Do lots of demo trading, get familiar to your terminal inside out
  6. Learn how to calculate a trade with all there is, margin call, profit and loss targets, drawdown, trade costs etc.
  7. Study the basics of market influence, like news, fundamental data, statistics
  8. Create documented trading systems and see why the fail. Improve your models till you have a good one

This may take many months but you should make profits at some point. Patience and Persistence !

  • #188
  • Jan 31, 2019 4:50am Jan 31, 2019 4:50am
Quoting redrobin06
After spending nearly 2 years of trading and losing nearly $2000.00 I have learned the reason why 95% of all traders fail. It is the same reason for any business, why some of them fail. Well here is what I learned. 1. Traders allow their emotions, greed, hope and assumption to take over their trading. This is probably the most difficult thing for a trader to do is to eliminate those things while in the Forex business. Did I say "business"? Oh yes it's a business. 2. Lack of Education. Most traders (myself included) are very arrogant when they first...

I see this post was written in 2008, after 11 years the same porblems are issued, raised.. due to the recent market conditions not 95% of people, but 100%, we all lose, unfortunately
  • #189
  • Jan 31, 2019 10:34pm Jan 31, 2019 10:34pm
Because trading is very hard. Sound logics that makes money are rare. It's difficult to find out market inefficiency and exploit it. I've traded for several years, and try many methods, and I found no technical indicators ever works. The only way make money is to exploit market inefficiency.
  • #190
  • Feb 1, 2019 12:25am Feb 1, 2019 12:25am
For sure, the trading in general is based on the effect of market inefficiency. It works best when the fundamental situation has changed substancially, the price just start to move. Such conditions create opportunity for the retail trader being able to open and close positions faster than the institutional players.

Most of the traders fail because the do not take trading seriously, as a profession. Market is high-competitive sphere, where the retail traders came face to face with the professionals from the prop-trading companies and hedge funds, equiped with the best possible hardware and software, advanced information systems, educated and experienced. At the same time, reatil traders belive they could win just by finding "the best" indicator or subscribing to the free trading signals.

Trading is an extremely hard work, and only those who understand it would actually succeed.
  • #191
  • Feb 1, 2019 4:52am Feb 1, 2019 4:52am
It's very simple really...

BUY low, SELL high.

Trade daily charts, and work a job 8 hours a day, 7 days a week.

Better yet, work a FIFO job, 12 hours a day, 7 days a week... 2 weeks on, 1 week off, and trade ONLY weekly charts... use NO indicators.

How you say?... learn to read price action.
In the days of old when sailors were bold, and seldom if ever contented.
  • #192
  • Feb 6, 2019 5:07am Feb 6, 2019 5:07am
traders fail always , because they trade with no analysis , most of the time traders trade with emotions , this is one of the top reason for losing in trade.
  • #193
  • Jan 19, 2020 9:20am Jan 19, 2020 9:20am
it can be be, but the main reason is we traders for all time focus on acquiring good knowledge and experience. we dont focus on money management which is the core to success in Forex trading. so we loss most of the time.
  • #194
  • May 13, 2020 9:41am May 13, 2020 9:41am
what actually money management that you are talking about ? its a approach to avoid unfortunate risk and losses ?
  • #195
  • May 16, 2020 12:55pm May 16, 2020 12:55pm
Quoting AlexImam
what actually money management that you are talking about ? its a approach to avoid unfortunate risk and losses ?
maybe this approach:

1. Put on seperate account 100 usd
2. 1 deal volume: 0.01 lots
3. Earn 100% (so you have 200 usd)
4. Double lots size to 0.02
5. Earn again 100% (now you have 400 usd)
6. Cash out profit 300 usd – repeat from step 1

use an very risky (and very profitable) EA which can earn 100% in 1 week. But which could fail after several weeks. All those risky grid/martingale/averaging EAs eventually fail. But... with proper MM you still can profit. Dont be affraid to vipe out entire account - have splitted capital for several acounts.
  • #196
  • Sep 2, 2020 3:25pm Sep 2, 2020 3:25pm
Very good analysis. Each and every points are correct. It will help all the traders to deal with their losses.
  • #197
  • Sep 2, 2020 9:21pm Sep 2, 2020 9:21pm
Forex trading requires a lot of coordination. Such as trading discipline, money management, risk management, trading plan, trade management, good strategy, if you can not combine these various things, then you can never be successful in trading. These issues are very important in trading. And many traders face losses due to not managing these issues.
  • #198
  • Sep 17, 2020 3:09am Sep 17, 2020 3:09am
Trade with as high of a balance as possible using as little of it as possible at a time.

Average into your trades and average out.

At the very least a couple % a month is reasonable.

Think of it like this, 1% of $5,000.00 is $50.

So getting a consistent $50 a week is a very reasonable thing. I average about $500 a month at least.

I tend to have about a 3 out of 4 success rate. Cut your losing trades fast and let your winning trades run.
Love to talk on Discord: DividendGamer#1324
  • #199
  • Sep 17, 2020 5:45am Sep 17, 2020 5:45am
i have seen the failure rate increased very rapidly of late , because after COVID 19 issue , so many general traders come into this market place. they have 0 knowledge but try to bring good amount of profit.
  • #200
  • Sep 19, 2020 1:28pm Sep 19, 2020 1:28pm
Quoting NathanAstel
i have seen the failure rate increased very rapidly of late , because after COVID 19 issue , so many general traders come into this market place. they have 0 knowledge but try to bring good amount of profit.
True, the availability of free time and the need to make income is driving people toward forex who wouldn't otherwise think of taking up trading.
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