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Survey: Why 90% trader's failed?

  • #41
  • Apr 27, 2007 9:10pm Apr 27, 2007 9:10pm
Hey i check all the box!
u know why 95% fail? that's because this games is design to be like that.
what is our chance here at this stupid games?
1. Too much volatile
2. News manipulation
3. Political Event
4. Internet connection
5. Server issue
6. Greed and Fear
7. Human error a
8. Low capital h
9. Low economic knowledge
10. Low chart understanding
And so much more!!!!!!!
which one of your indi/startegy can filter this all out?
Plus (from elitetrader com)
1. it took me a long time to figure out that no one really understands why the market does what it does or where it’s going. It’s a delusion to think that you or any one else can know where the market is going.
2. It also has taken me a long time to understand that no one knows when the market will move. There are many individuals who write newsletters and/or books, or teach seminars, who will tell you that they know when the market will move.

what i'm saying here is the RISK..RISK..RISK..RISK..RISK..RISK..
FF should put this word in very big size in front of the web not the word RICH..RICH..RICH..RICH..RICH..RICH..RICH..RICH..
  • #42
  • Apr 27, 2007 11:30pm Apr 27, 2007 11:30pm
Quoting johs
But at least 50% must lose otherwise the market would not move, right?
i think it is not only trader that trade currency, and currency involve many thing, Forex trader is just one of em. if the gbp-usd moves 100 pips, thats only count about a cent in goods price. so actually, many forex traders do bankcrupt because a few cent movement... silly isn't it?
  • #43
  • Apr 28, 2007 1:02am Apr 28, 2007 1:02am
Either one factor or all of the factors responsible for loss in trading.
Not enough time for the understanding the markets, or trading to get rich too quick, or decisions taken from heart rather than brain.



Quoting Qu|cksilver
Helo FF members,

I'm doing a survey why most traders lose in trading. Here and there mentioned that 90% of the traders failed. Are they failed because of thier trading method? unskilled? or money management? lack of information? and etc.

The successful traders says "Trade with the trend," "Cut your losses and let your profit run", "Money management" etc. But why we still failed?

I appreciate if you can please tell me the reasons so we newbie can learn for the professional the right way/attitude to trade the forex.

Thank you.

QS.
  • #44
  • Apr 28, 2007 2:44am Apr 28, 2007 2:44am
hi
as u know ,there is a lot of charts,n2 ,meta,... an they are different in h4,daily and weekly close and open and this causes differences in trend lines.
which chart do u use? and why?
  • #45
  • Apr 28, 2007 5:59pm Apr 28, 2007 5:59pm
In my opinion, so many traders is fail because... forex is very unpredictable.
Being for some time in gambling, I have to say, some types of gambling more predictable then forex. It is very posible in some types of sports create complitly mechanical system and it will work (I know this for a fact). Not so in Forex.
"Every battle is won before it is ever fought." - Sun-tzu, The Art of War.
  • #46
  • Apr 28, 2007 6:27pm Apr 28, 2007 6:27pm
In my case it was fear. When I first started trading, I only had 2500 that I was attempting to live off of so I was afraid to take any long term risks. I wasn't losing money but i wasn't making much either. When I decided to let my capital grow and get a part time job my forex account grew to over 40,000 rather quickly. I just had to learn money management and overcome my fear of losing money.
  • #47
  • Apr 28, 2007 7:01pm Apr 28, 2007 7:01pm
I can tell because i fail, i noticed that the most of populars trading systems, can let a trader have profit almost everyday, but what happen when I close a position in profit? I say:

-Well, i've taked the profit!! I've done a good trade!! My idea to buy/sell was good! Let's find another opportunity, maybe in another currency, to have another profit!!
Then, i notice another good setup, and i enter.. and after some hours, i close again in profit!! And I say:
-Super!! I'm very good!! I want to find another setup to take another profit as soon as possible! (I like it very much)
And what happen, there are not "very good setups", maybe the market is not treding or there is no breakout and no one news until the next day, but i have to make profits!! Let's see some currency that have not a good setup, but have a maybe poor setup.. and i find no one, so i think: well, just look for a emacross in some currency, i just want to enter the market!!
At that point, i enter the market, but my subconcious say to me: "hey, why you are entering? This is not a very good setup, surely your (my) sl will be hitted! Why you can't wait! (i answer myself: i want to trade, i've done a good profit today, so i can also have a loss, i don't care! but if this will be another profit, i will be more happy!!)
And, at this point, the sl is hitted, and i have a loss (not a big loss, due to good MM).
Now, that's the point of now: 2 wins, 1 loss..
I think: well, maybe if i was giving importance to what my subconcious told me, i was not entered in the market, and the situation now was: 2 wins, 0 loss!
Damn, i have to close my trading day with almost another win, i can't accept to have done a so stupid error!! Enter in the market just because "want to trade", knowing in advance that it was a probable bad signal... stupid error!
Now i have to broke my MM rules (buy/sell big amount), to let the next win give me BIG profit to cover the loss!
But what happen? The market don't give clear signal, again like the last time i entered (that i had a loss because of the stupid error).. but i have to enter, because i want the last profit of the day!
Ok, let's do again the "stupid error", but this time without a good MM..
And, as you can imagine, there is again a loss, this time bigger then the first, that eat all my day-profit, and let me close the day in a big loss!!

The thing is, it is not so hard to take profit from the market, the hard things come when you take profit from the market, and now you want more.. want more!! Like the bob marley song titled"want more"


This is where i do errors, i think maybe other traders have a similar situation (for example my father trade too, and he have this situation too!)

What i'm doing now, is trade and trade and trade again (on demos), i want to trade too much, and let me hate the trading, let the trading boring me, so one day i will trade only when and because there is a good setup! And at that point, i will go again live!

Thanks for read
  • #48
  • Apr 28, 2007 10:06pm Apr 28, 2007 10:06pm
I believe traders fail because they look at a chart and go oh this is easy.!
Also, emotion is serious. Right now, I know I cant trade live. I am a basket case. I have done only a few hundred trades and find it too difficult and stressful. Now, I just automate my trades and look at the account at the endo of the day. It takes most of thel human emotion out of the situation. If you invest any time, go for automation. Thats the key for the future.
  • #49
  • Apr 28, 2007 10:46pm Apr 28, 2007 10:46pm
Lack of Knowledge can be learnt by using momey ( I have brought more than four books just to increase my knowledge and have visit a lot of forums)


But to me the real forex demons are Greed and the lust for shortcut are the ones which brings me down from $620 USD to $320. I am not afraid to say that because I want this to be a lesson for me. Now I am still trying hard though that is why I create a thread on how to curb this Greed and lust. lol
  • #50
  • Apr 29, 2007 12:05am Apr 29, 2007 12:05am
From my own experience, I believe overtrading a small account has the most potential to finish us off. That doesn't mean you can't build a small account but it won't happen overnight. Reasonable goals are the key. With a $1000 account you shouldn't be risking more than 20 or 30 dollars per trade. No trading 5 or 6 or 8 dollars a pip.
The veterans will tell you that, and if you succeed in Forex you'll find it to be true.
I slaughtered $1000 accounts many times over before I gave in to the wisdom of the seasoned traders. When I did, my trading turned around in an instant. And when you trade a little smaller you can stay alive long enough to catch a few of those flyers.
Small consistent gains work wonders. Less stress--more rational trades. There are more than enough valid strategies on this forum that will point you to success. It's certainly not impossible.
Rob Booker's "Adventures of a Currency Trader" should be required reading for anyone opening a live account.
Happy Trading!
  • #51
  • Apr 29, 2007 2:54am Apr 29, 2007 2:54am
Quoting billflet
From my own experience, I believe overtrading a small account has the most potential to finish us off. That doesn't mean you can't build a small account but it won't happen overnight. Reasonable goals are the key. With a $1000 account you shouldn't be risking more than 20 or 30 dollars per trade. No trading 5 or 6 or 8 dollars a pip.
The veterans will tell you that, and if you succeed in Forex you'll find it to be true.
I slaughtered $1000 accounts many times over before I gave in to the wisdom of the seasoned traders. When I did, my trading turned around in an instant. And when you trade a little smaller you can stay alive long enough to catch a few of those flyers.
Small consistent gains work wonders. Less stress--more rational trades. There are more than enough valid strategies on this forum that will point you to success. It's certainly not impossible.
Rob Booker's "Adventures of a Currency Trader" should be required reading for anyone opening a live account.
Happy Trading!
Now this is the one of the good answer for me so far, why trader loss.. the rest just talking good..
  • #52
  • Edited 3:26am Apr 29, 2007 3:11am | Edited 3:26am
Of those choices Money management, But over all from personal experience psychology plays a lager role. You need too take some good long hard looks at yourself and your behavior to become a successful trader. Meh who needs a psychologist, all you need is to really need is to want to learn trading and you'll get some great insights about yourself. My dad warned me before I started I just didn't realize the how correct he was when he told me.
  • #53
  • Edited 5:53pm Oct 4, 2012 5:11pm | Edited 5:53pm
5 Years Too Late For This Thread.....!!!!

My main reason for loosing in Forex is not taking the wrong trade, because mostly I pick the right way (long/short), but when my stop loss is almost getting hit, I bottle it and being stupid I move it, thinking it will be only a few more pip's, like 10-20, then it ends up being 200-300.
When I eventually get stopped out at almost break the bank time, the trade reverse's back to a profit, by which time I have no money left in the account to fund it.
Happened this week again on Oil, I made 70 pips and took the profit, then I thought the price would go back up, but it did not. Lost 254 pips, because I tried to save my account (had stop loss eventually at 254 pips). When I woke up as usual the trade was stopped out by only 4-5 pips, then retraced back over 400 pips.
Wish I could just set my STOP LOSS and leave it alone, going back on my trade history would leave me with many £$£$£$£$£$£ in my account, and not the brokers.
  • #54
  • Oct 4, 2012 7:06pm Oct 4, 2012 7:06pm
Quoting Mossy68
5 Years Too Late For This Thread.....!!!!

My main reason for loosing in Forex is not taking the wrong trade, because mostly I pick the right way (long/short), but when my stop loss is almost getting hit, I bottle it and being stupid I move it, thinking it will be only a few more pip's, like 10-20, then it ends up being 200-300.
When I eventually get stopped out at almost break the bank time, the trade reverse's back to a profit, by which time I have no money left in the account to fund it.
Happened this week again on Oil, I made 70 pips...
My friend, the way you are trading is all wrong. Never, ever, enter a trade withot first being absolutely clear on where you will get out. Risk a fixed maximum percentage of your account and stick to it. No matter what happens during that trade, do not widen your stop. Then you will know exactly how much you stand to lose before you even enter.
  • #55
  • Oct 4, 2012 11:03pm Oct 4, 2012 11:03pm
Quoting Mossy68
5 Years Too Late For This Thread.....!!!!

My main reason for loosing in Forex is not taking the wrong trade, because mostly I pick the right way (long/short), but when my stop loss is almost getting hit, I bottle it and being stupid I move it, thinking it will be only a few more pip's, like 10-20, then it ends up being 200-300.
When I eventually get stopped out at almost break the bank time, the trade reverse's back to a profit, by which time I have no money left in the account to fund it.
Happened this week again on Oil, I made 70 pips...

That happens to most of us. I think that if you change your approach a bit, and take the angle that you are trading a whole account, and not one trade, then you will never move your stoploss in the future.

Profiting from speculation can only be done by knowing that its core is statistical in nature. Very difficult to win all your trades, and what really may allow you to profit in the market is by ensuring that you profit 2 to 3 times more than what you risk. You learn to take loses because they are profitable.
  • #56
  • Oct 4, 2012 11:47pm Oct 4, 2012 11:47pm
its just amazing how many people give away free advices, while I know not a single person here is really profitable in long run
  • #57
  • Oct 5, 2012 1:01am Oct 5, 2012 1:01am
Quoting Roofx
My friend, the way you are trading is all wrong. Never, ever, enter a trade withot first being absolutely clear on where you will get out. Risk a fixed maximum percentage of your account and stick to it. No matter what happens during that trade, do not widen your stop. Then you will know exactly how much you stand to lose before you even enter.
Hi thank you both for your advice, very simple and I know that if I actually apply this simple rule that I will be able to trade well. I keep saying it, but now need to put it into pratice.

I was using 5% of my account at any one time, and will stick with this for the time being, until my account starts to grow then back to 2-3%.

I printed of both thread reply's and will read them through when I need to.

Thanks - Mossy
  • #58
  • Oct 5, 2012 1:19am Oct 5, 2012 1:19am
Quoting Hakimi
its just amazing how many people give away free advices, while I know not a single person here is really profitable in long run
Everyone is an expert in forex. Don't you know we are all winners.
I think it's something like "cut your losses and let your profits grow".
See I just made you a millionaire.
It's that easy. We are all millionaires here, so please, no sarcasm, ok?
  • #59
  • Oct 5, 2012 3:07am Oct 5, 2012 3:07am
"Why 90% trader's failed?"

I think better question would be is, why 10% succeed?
  • #60
  • Edited 5:36am Oct 26, 2012 5:20am | Edited 5:36am
90%+ traders are losers because 90% of traders are retail traders. Period.

The retail traders have less deep pockets to trade than institutional traders, so they risk more to become rich quicker and when they are stopped out, they lose while at the same time, the guys with deep pockets just wait for their trade to be positive and they win.

Or in a more synthetic manner :

1. The retailer trades big and needs to win in a short period of time.
2. The institutional trades small and has all the time to win.

In the long run, the second statement has far more probabilities to realize than the first. Is as simple as that.

We have just to understand that and act accordingly.

Kind Regards.
Simplicity is the Ultimate Sophistication.
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