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Now I know why 95% of traders are on losing side

  • #81
  • Oct 21, 2007 4:30am Oct 21, 2007 4:30am
I think trading very small accounts can be very interesting for gambling because even if you lose your money it won't hurt too much

But once you start trading amounts that hurt gambling is not an option and you need to concentrate on the actual trading
  • #82
  • Oct 21, 2007 4:44am Oct 21, 2007 4:44am
I thought I am gonna contribute.

Just a short note.

One of the problems are greed, fear and not having a plan. Fear and no plan leads to running losses. Greed and no plan leads to winners turn to loosers or to small winner compared to loosers.

Regards
BR
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  • #83
  • Oct 21, 2007 5:02am Oct 21, 2007 5:02am
Quote
Lol....yes currenex dont have requotes, they just have 250 pip slippages during CAD Trade Balance releases......

They do have slippage, but that's why i use only use limit orders... 250 pip slippage that i've had was a one off thing, it was a market order in the 1st second of the spike, no more market orders for me, thank you very much!

Market usually normalises a few seconds after the news release... the more liquid the pair the faster.
  • #84
  • Oct 21, 2007 5:29am Oct 21, 2007 5:29am
Quoting bullrock
I thought I am gonna contribute.

Just a short note.

One of the problems are greed, fear and not having a plan. Fear and no plan leads to running losses. Greed and no plan leads to winners turn to loosers or to small winner compared to loosers.

Regards
BR
Well said. I couldn't have said it any better myself
  • #85
  • Oct 21, 2007 5:44am Oct 21, 2007 5:44am
Quoting bullrock
I thought I am gonna contribute.

Just a short note.

One of the problems are greed, fear and not having a plan. Fear and no plan leads to running losses. Greed and no plan leads to winners turn to loosers or to small winner compared to loosers.

Regards
BR
Totally agree. It is these reasons why 95% of traders lose. If you have solid money management and a good strategy, it's harder to lose than it is to win.
  • #86
  • Oct 21, 2007 5:57am Oct 21, 2007 5:57am
Quoting peterM
Totally agree. It is these reasons why 95% of traders lose. If you have solid money management and a good strategy, it's harder to lose than it is to win.
Thanks . You also need confidence, trust and a huge self discipline to follow your plan during hard times. But this is just addition to my previous note.
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  • #87
  • Oct 21, 2007 6:03am Oct 21, 2007 6:03am
Quoting iandekoker
Ok let's do a little experiment for all the none believers out there. I am gonna keep a journal of all my 5 pip trades. I will record every trade i make. I will aim for a 5 pip profit. I will use a 20 pip stop loss.

Let's see how many time i make my target AND how many times i get stopped out with a 20 pip loss. This way we can see if i am bullshitting or have a solid profitable approach

You are welcome to follow my progess on the journal factory. Maybe we could change those stats and soon 95% of traders will make be successful in forex. lol
I agree with you on shorter term trading. its something i am trying to do... actually i've been trying since i started livetrading..
but its not something i would recommend for newbies. imo it takes long time -perhaps years- of charts watching until one aquire some market feeling..

but Those advocating longer term trades have very good points too. And they may have success statistics on their side. From what i know people who (i believe) make money are mostly long term traders (or maybe those who make big money scalping are not posting on forums and enjoying life)
  • #88
  • Oct 21, 2007 6:10am Oct 21, 2007 6:10am
Quoting Orion602
I agree with you on shorter term trading. its something i am trying to do... actually i've been trying since i started livetrading..
but its not something i would recommend for newbies. imo it takes long time -perhaps years- of charts watching until one aquire some market feeling..

but Those advocating longer term trades have very good points too. And they may have success statistics on their side. From what i know people who (i believe) make money are mostly long term traders (or maybe those who make big money scalping are not posting on forums and enjoying life)
yes each to his own....as long as everyone is making lots of money
  • #89
  • Edited 7:20am Oct 21, 2007 7:02am | Edited 7:20am
Well, for what its worth...

I have a friend who make consistence money on EUR/GBP.
targeting 10 pip each trade risking 30 pip.
he only had a couple of losses since last month....

I don't bother trading EUR/GBP since it move to slow......
  • #90
  • Oct 21, 2007 7:04am Oct 21, 2007 7:04am
Quoting Syafi
Well, for what its worth...

I risk 18 pip MAX, and aim 6-7 pips on EUR/JPY
I risk 36 pip MAX and aim 12-15 pips on GBP/JPY

I took all trades I see, not just the A?-Class? trades.
20-50 trades a day..... Its just scalping the market.
and manage to make 10% every week,

NFP on the other hand has been cruel to me .
I plan to tame NFL from next month on.
Are you a 95% or a 5% trader?
  • #91
  • Oct 21, 2007 7:21am Oct 21, 2007 7:21am
Quoting vinnie99
Are you a 95% or a 5% trader?
I dont know........ as long as I am in profit at end of each day/week/month then its good for me.
  • #92
  • Oct 21, 2007 7:37am Oct 21, 2007 7:37am
Quoting iandekoker
My account size is big and i use a 10:1 leverage. I trade $100 lots. Aiming for $500 or 5 pips profit. Risking 20 pips or $2000
You need a strategy that wins over 80% of the time. Good luck.
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  • #93
  • Oct 21, 2007 8:22am Oct 21, 2007 8:22am
Quoting WTB
You certainly are fighting a losing battle trying to convince most of the readers that risking 20 pips for a 5 pip target will make money in the long run, but I'd be interested to hear the reasons you put forth to defend such position.
I'm not defending either, but I can say that I'd rather have a system that takes 1 pip every time than one that takes 200 or 500 or (insert any number here) pips half the time.
  • #94
  • Oct 21, 2007 9:22am Oct 21, 2007 9:22am
Quoting blueruby
I'm not defending either, but I can say that I'd rather have a system that takes 1 pip every time than one that takes 200 or 500 or (insert any number here) pips half the time.
"High frequnecy trading" Treasure Island for brokers...
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  • #95
  • Oct 21, 2007 9:27am Oct 21, 2007 9:27am
Quoting bullrock
"High frequnecy trading" Treasure Island for brokers...
Treasure island for the trader, too. If it takes 1 pip every time, or even 99 / 100, I'll max out the leverage and be very happy with that one pip.
  • #96
  • Oct 21, 2007 9:33am Oct 21, 2007 9:33am
Quoting blueruby
Treasure island for the trader, too. If it takes 1 pip every time, or even 99 / 100, I'll max out the leverage and be very happy with that one pip.
Well I have no idea. Hope for you the best. Really.
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  • #97
  • Oct 21, 2007 10:10am Oct 21, 2007 10:10am
Quoting Daemien
Hi Threeticks,

As I posted above, the protection of your capital should be a part of your system & money management. Once you have a working system the rest is psychological which is what I was referring to.

So many new traders try out a new system (that will work in the long run), experience a couple of losses, and because of their doubt & inability to accept these losses as a part of the game quickly dump the system and move on to the next. This is a vicious cycle unto itself here - one that if kept up will only hasten the traders' demise.

Again, assuming a working system (of which there are quite a few on this site), it is the traders own make-up that I have seen cause failure again & again. It has taken it's toll on my own account as well.... Something I myself am working on.

D.
Hi Daemien,
Just a quick reply as im up to my eyes at the moment.
I agree 100% with you.
  • #98
  • Oct 21, 2007 10:15am Oct 21, 2007 10:15am
Quoting blueruby
I'm not defending either, but I can say that I'd rather have a system that takes 1 pip every time than one that takes 200 or 500 or (insert any number here) pips half the time.
Statistically speaking, a 100% system is impossible. The market would have to be a closed system with no external influences to be 100% predictable. You may get a good run. It may even last for awhile. But every "perfect" system will eventually falter due to the dynamic nature of the market.

I'd rather have a system that just returns more profit than loss, no matter what the win-loss percentages are. That is a far more realistic goal than a 100% system.

~X~
  • #99
  • Oct 21, 2007 10:20am Oct 21, 2007 10:20am
Quoting blueruby
I'm not defending either, but I can say that I'd rather have a system that takes 1 pip every time than one that takes 200 or 500 or (insert any number here) pips half the time.
You are obviously not talking about an equal number of trades are you? Because then there is no doubt the 2nd strategy blows the 1st one away.

+ + +

As someone earlier mentioned, one of the main reasons why traders fail at a high rate is they are learning for the most part from other failing traders. And since trading (not demo trading) involves real money what new traders first should concentrate on is not doing what failing traders do. Then try to learn what profitable traders do. But in the beginning we all want to learn to make profitable trades, not bother with learning how to avoids losses.

Famous quote: Take care of your losses, the winners will take care of themselves.
  • #100
  • Oct 21, 2007 10:36am Oct 21, 2007 10:36am
Quoting SunTrader
As someone earlier mentioned, one of the main reasons why traders fail at a high rate is they are learning for the most part from other failing traders. And since trading (not demo trading) involves real money what new traders first should concentrate on is not doing what failing traders do. Then try to learn what profitable traders do. But in the beginning we all want to learn to make profitable trades, not bother with learning how to avoids losses.
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This is an excellent point ST.

And here is one of the best examples I could readily find. It's a 4hr chart with more usefull information in it than most ebooks contain. It was posted by an experienced professional trader, SoulTrader, in the 1KT forum and it's a great example of how a picture is worth a thousand words.
http://www.forexfactory.com/attachme...6&d=1192874272

I'm not advicating that you follow any one traders advice verbatim, but we should give it more weight because of it's verifiable source.
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