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Why Traders lose money and how to start being consistently profit

  • #41
  • Apr 26, 2021 9:01am Apr 26, 2021 9:01am
Quoting LouDa
{quote} Overconfidence?
overconfidence is a broad concept. 1. can be achieved through professional growth and many years of practice, when overconfidence is based on experience and readiness for any situation. 2. can be caused by the illusion of success, and psychological problems.
The second option is dangerous, and the first should be the goal for everyone.
  • #42
  • Apr 26, 2021 9:13am Apr 26, 2021 9:13am
Quoting MarcellusLux
{quote} Investing in a trading experience is the time you spend on trading, practice (on lower lots, for example), and losses are the imperfection of the strategy. Nothing is perfect, and undoubtedly losses are part of the trade, but refusal to accept them is distructive, you need to continuously work on the strategy and on the mistakes.
I didn’t mean "refusal to accept them". I just gave an example from personal experience. Such a life hack. Think about losses in a different direction, and move towards self-improvement.
  • #43
  • Apr 26, 2021 10:16am Apr 26, 2021 10:16am
Quoting DaMark
{quote} I didn’t mean "refusal to accept them". I just gave an example from personal experience. Such a life hack. Think about losses in a different direction, and move towards self-improvement.
I understand your point and it has an optimistic direction, this is your way of not worrying about losses.
I am realistic about it and I don't worry when I realize why this happened and I can fix this mistake.

We all have our own set of knowledge, techniques and experience...
KR
  • #44
  • Apr 27, 2021 4:25am Apr 27, 2021 4:25am
Quoting KamiKami
The main problem for most people is excitement. They do not notice how they begin to get more and more involved in this. Therefore for successful trading the first step is to get rid of this habit. If you lose you need to fix it and not wait for the dd to be sustained. After all the chart can go contrary to your expectations (as often happens).
Greed, excitement, fear, uncertainty or overconfidence are all emotions that are very difficult to overcome, they step by step bring the trader closer to losing. There are many tips and practices for dealing with emotions. For example, related to excitement you need to pause after unsuccessful trading in order to allow the mind to cool down.
  • #45
  • Apr 27, 2021 8:16am Apr 27, 2021 8:16am
Quoting MarcellusLux
{quote} I understand your point and it has an optimistic direction, this is your way of not worrying about losses. I am realistic about it and I don't worry when I realize why this happened and I can fix this mistake. We all have our own set of knowledge, techniques and experience... KR
I can't say I'm not worried about losses, but with this self-hypnosis technique I very quickly cope with this feeling. And I quickly cool my head and move on. I work on mistakes and earn money forward.
It just my way and it is not so optimistic. If I see that losses exceed profits, then not a trace of optimism remains. But a full analysis of actions is turned on.
As it says "put your trust in God and keep your powder dry".
  • #46
  • Apr 27, 2021 8:18am Apr 27, 2021 8:18am
Quoting PipsCrasher
{quote} Greed, excitement, fear, uncertainty or overconfidence are all emotions that are very difficult to overcome, they step by step bring the trader closer to losing.
Indeed. But to make good money, this is worth striving for.
  • #47
  • Jul 2, 2021 2:35am Jul 2, 2021 2:35am
Why traders lose money:
1) Lack of a trading system.
2) Very large leverage. Because even a profitable trading system with an excessively large leverage can lose the deposit.
  • #48
  • Jul 2, 2021 12:45pm Jul 2, 2021 12:45pm
Agree with the post for sure. Some have a 500dollar account and they expect to make 2k a month. The capital is so key to have
  • #49
  • Nov 12, 2022 11:59am Nov 12, 2022 11:59am
A very intelligent thread!!
  • #50
  • Nov 14, 2022 11:07pm Nov 14, 2022 11:07pm
The secret to surviving as a forex trader, as it is in life, is risk management. Even if you are an expert trader, poor risk management can still wipe you out. Due to inadequate risk management techniques, forex traders lose money.
  • #51
  • Jun 9, 2023 7:18am Jun 9, 2023 7:18am
As a rule, traders lose money because they speed up their enter to the market. They should have waited for a better enter but they couldn’t kept themselves waiting. As a result, they pay the price.
  • #52
  • Jun 9, 2023 1:57pm Jun 9, 2023 1:57pm
There are many reasons but one of the top reasons is patience, it is almost certain that you may end up losing, IF you can not get a grip on the patience aspect. So I from my own experience can say that.
  • #53
  • May 23, 2024 4:03pm May 23, 2024 4:03pm
Hello, everyone

I am not so long in trading, only 1 year, and still don't achieve consistent profit, but during this time I realized that in order to master trading you need Discipline, Money Management and Risk Management and finally faith in what you are doing, you must understand that it will not be easy, It may take you 3-5-7-10 years to start earning, and maybe even your whole life, many beginners think that in order to start trading you just need to register with a broker and replenish your deposit, but this is just the beginning, surgeons study for 10-15 years before they start operating. ..

A great opportunity that can help you in trading is to find a mentor who is already making money on it and follow his example, unfortunately, in my country forex trading is not as developed as in others and nowadays the power of fake gurus on Instagram and YouTube, I want to wish everyone who reads this patience and perseverance, because 1 great week can close all the losses for years of study, just don't give up and enjoy the way to the world of trading....
  • #54
  • Nov 14, 2024 12:38am Nov 14, 2024 12:38am
Quoting Headland
...The vast majority of retail traders lose money for one or more of the 3 reasons cited below, and they are nothing to do with big bank/institutional money conspiracies against the retail trader! They are: 1. They don't know what a trading edge is, what you need to know about one to maximise your money and risk management to it, and generally they don't have one anyway. Ie - they don't have the recorded empirical evidence of an edge they feel theoretically has potential, over a large forward tested representative sample in the market conditions...

Hi all, I have been trading forex for a few months, and have bought a reputable and professional course to learn how to trade. After training, I used a demo account where I did very well.

I have diligently learnt how to read the charts, and how to execute my strategy, but I never seem to be able to make any headway. I researched and found out about market makers vs ECN STP brokers; my first broker was a market maker, and I could clearly see how they unashamedly hunted my stops (whether they hunted mine alone, or three hundred of us simultaneously). I have been learning trading in order for it to become my main income source so that I can provide for my family, and they just openly cleared my funds with no real way of me being able to make an income.

I found an ECN STP broker that I am currently with, but no matter how carefully I read the charts, it would appear that my entries 'cause price to change'. For example, I took a trade yesterday where price was gradually rising, and as soon as I went in, it just struggled and hovered near my entry point, then the dips towards my sl began. This was a swing trade, and my sl had been calculated to take the slow anticipated rise into consideration, yet, of course again, I have been stopped out.

I use trend lines, support and resistance, and price action, and the 50SMA sometimes. I have dabbled with some other indicators, but the basics above...

I have been reading the charts for like twelve hours a day, for days, when I don't take trades, I can confirm and generally see where price is headed, yet when I enter a trade it always suspiciously tanks. Something is not right, and this is the second broker that I am using.

Are there any other traders who have experienced this?

Are there any of you guys who actually genuinely make any money on the charts? I just need to know because the probability of me making absolute zero, is like zero, and I see how price just moves against my entries. If every time you go in, your broker works against you, how can you make money?

Is there anywhere where I could trade where I would not have brokers working to just take my money?

Is it the same with futures and options?

I am a mature man who has seen success with other in depth technical endeavours, and I understand how to work in a professional and meticulous manner.

Any help here would be greatly appreciated.
  • #55
  • Nov 14, 2024 4:09pm Nov 14, 2024 4:09pm
Quoting Holcom
{quote} Hi all, I have been trading forex for a few months, and have bought a reputable and professional course to learn how to trade. After training, I used a demo account where I did very well. I have diligently learnt how to read the charts, and how to execute my strategy, but I never seem to be able to make any headway. I researched and found out about market makers vs ECN STP brokers; my first broker was a market maker, and I could clearly see how they unashamedly hunted my stops (whether they hunted mine alone, or three hundred of us simultaneously)....
Hello mate, all brokers should have the same prices. Compare broker prices on traderview chart to see for yourself. So if price mostly goes against you, it's your trading that is the problem, not the broker. And yes, traders do consistently enough win with technical analysis, just not with the high-leverage and high returns that is being thrown left and right online. Those kind of consistent return, compounded, would make you the richest man alive in no time !
For me, trading is a marathon. The many trades are bigger than the sum of all their parts.
On the long run, the many trades over a long long time makes the trader that I am.
And I adapt my strategy development to that frame of mind, not the other way around.
And I got better and better with time much because of that perspective.
So Instead of focusing on the one trade, I focused more and more on a variety of complementing approaches...
My one or few trades never have much importance. I focus on the forest, not the trees. That is one of many aspects of my trading that I shared here live on ff for the last years and with great pleasure. Keeping an open mind and always learning is a must, as markets are forever evolving !

Cheers and wishing you the best in your trading!
If I don't mention SL and/or TP = longer-term setup possibly in the works!
  • #56
  • Nov 14, 2024 4:40pm Nov 14, 2024 4:40pm
Quoting twalyn
{quote} I have developed a trading strategy that i back-tested over 1500 times and it is extremely profitable with 40% win rate, 30% loss and 30% breakeven on average. I've combined this with a good risk to reward strategy never risking more than 0.5 account size. Through back testing I can generate 10-20% monthly account gain but I can't seem to replicate this in the live market. What can I do to improve my discipline/ psychology? I'm very good at controlling my emotions but every once in a while i try too hard and break from my strategy and scalp...
Take the following as advice, not criticism.

I went through the thinking you just shared with us also, almost 20 years ago.
10-20% a month gain proves that the backtesting has affected judgement enough to put anyone on a path for failure.
Trading 5000$ with, lets say, 15% monthly, would give you 20 000 000$ in 5 years.

That alone should be enough to realize that something is seriously wrong with the conclusions taken from the back-testing in question, and that it is time to get back at the drawing table.

There are many ways to profit in the market. I am just another grain of sand...
But I myself do not rely on any one strategy, I study many, and find how they can complement one another. Diversification and moderation is key.

And with moderate gains and consistency, funds come along.

Creativity, adaptivity, humility, moderation, study, discipline, patience, laughter and hugs, that's a lot my trading recipe !

Cheers mate and wish you all the best in your trading !!!
If I don't mention SL and/or TP = longer-term setup possibly in the works!
  • #57
  • Edited 6:30am Nov 15, 2024 6:04am | Edited 6:30am
Quoting Holcom
...
here's my 2 cents:

use the HTF for a bias, a direction and stick with it, go to the LTF for entries always in the direction of the LTF
stay away from the very low TF's like 1M and 5M
focus on continuation trades, don't try to catch reversals
always use a SL
don't overleverage so you can use bigger SL's so you won't get cut out of trades too often
losing is normal, you just have to win more than you lose
give more importante to price action, use a MA, MACD, TDI if you have to but keep it simple and don't chase the next magic indicator, you're just wasting your time
don't chase the money, don't try to get rich in a month or a year. Let the money come to you, focus on being profitable, if you can consistently make money with small lots you will do the same with big lots over time. Greed will destroy you.

And focus on not losing, remember if you lose 1%, making back 1% will mean you still have lost money. Then comes the manipulation issue, no one cares about you, if you're constantly getting the wrong side of the trade that's on you, see what you are doing wrong.

practice and then you can evolve your trade
  • #58
  • Nov 15, 2024 10:03am Nov 15, 2024 10:03am
How many of them back test their strategy?
  • #59
  • Nov 21, 2024 7:14pm Nov 21, 2024 7:14pm
simple === do not do ANYTHING ppl say show or suggest on websites. do ur own research n never EVER listen to anyone else. majority of interneters are cheese sticks. crunchy on the outside but nothin in da middle ==== OR === listen to faceless nobody ppl online n spend your life confused n discontented. your choice
protein for breakfast !
  • #60
  • Nov 22, 2024 3:27am Nov 22, 2024 3:27am
Do not do ANYTHING people say, show or suggest on websites. Do your own research and never EVER listen to anyone else.

probably the best advice I've ever heard...
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