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

Quoting iandekoker

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Yes we have all been there and done it. Demo and live trading was totally different for me. It was easy to demo, but once i played with live money it was such a psychological shift i had to make.

Look we are human and we are gonna make mistakes every once in a while. But our mistakes must help us learn to be better traders and NOT wipe our accounts out.

HHHHmmmm i wonder if i should ask this question. I wonder how many traders would give an honest answer. But lemme ask it anyway. Do you also find yourself trading with lots of discipline and patience and then SUDDENLY out of nowhere do you make an impulsive trade based more on emotions than on anything else? I know i have........

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Quoting wheelsut

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You just describe my last two days ahhhhhhhhhhhh Trying to make the market move the way I want it to, a NO NO and my account is showing it right now.....

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Quoting Serega

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I don't think that the problem in making 10 trades a day or 1 trade a week. The main thing if the trader earn money or not. To my mind if his system in 10 trades per day brings him money thats good, because i am sure when he (trader) will try to change his system and start trade long-time positions, he becomes a looser

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Quoting arstel

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Hi,
I read your article why do mst trader loss, well i need to learn more from you cause i am a newbies and still taking the babaypips quiz now. However I am now still trading demo in couple of currency, like in the morning GMT+7. I enter the market and take each currency of profit taking 10 - 15 pips. Sometimes it really turns well but we really cannot predict in the next hour or so. Although i am using free indicator in making trend decision I cant make good with it. What currency is the best for me to trade as a newbies?
Thank Ian.
Regards, Arstel

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Quoting Serega

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I don't think that the problem in making 10 trades a day or 1 trade a week. The main thing if the trader earn money or not. To my mind if his system in 10 trades per day brings him money thats good, because i am sure when he (trader) will try to change his system and start trade long-time positions, he becomes a looser

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Quoting iandekoker

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I would recommend you only trade eur/usd. Learn everything you can from it. Read up on it. Make sure you place vital support and resistance levels on your charts and see how the market reacts to those levels.

I would not recommend you trade any Jpy currencies. They are very volatile in my opinion. For me Jpy is a devil from a different hell....lol

Plus if you trade more than one currency then there are too many thing to look out for. I like one currency with 5 min, 15 min, 30 min, 1 hour, 4 hour, and daily charts. That way i see the bigger picture the whole day.

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Quoting wheelsut

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Very good point when you find a system that works for you STICK WITH IT do not change or even look at another system. Hell if your making money why change.

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Quoting Xyrus

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Greed.

Once many traders achieve the discipline and the rigorous rules required for modest success, greed becomes the significant adversary. The "get rich quick" mentality is always there and is always a threat to a trader.

Those at the top did not get there by getting rich quick. Even the "overnight" successes have a long history of trying and failing before finally getting it right.

~X~

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Quoting The Jedi

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Once you start really getting it down and you really start exercising your discipline and control, trading actually gets boring. It's just like any other job. I even find myself kvetching with myself about whether or not I want to go to bed now or force myself to stay up and place my entries and then go to sleep (which I do after I remind myself of the profit potential of what I can earn while sleeping away). Just as what Warren Buffet said about investing; that if you're having fun investing, you're probably doing bad investing because good investing is boring, seems to hold true for trading.

Yes, it does take a long time of trying and failing before you finally let it sink and and start to exercise discipline and control, It took me four years. Now I'm trying to hold out with the modest gains portion, which I constantly remind myself are huge gains compared to the last little exercises in trading that I undertook...because I've blown out three accounts and about $15,000 before this. Of course, if only I knew then what I know now...

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Quoting Xyrus

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Greed.

Once many traders achieve the discipline and the rigorous rules required for modest success, greed becomes the significant adversary. The "get rich quick" mentality is always there and is always a threat to a trader.

Those at the top did not get there by getting rich quick. Even the "overnight" successes have a long history of trying and failing before finally getting it right.

~X~

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Quoting iandekoker

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After reading numerous of these threads I realize why most traders DO NOT make money in forex. It's because of the following reasons:

1. Traders open a mini/micro account with $500 and then play volatile currencies with $1 lots. Now this is a sure way to blow account after account. Besides you will NOT make money trading a mini/micro account. The odds are against you. That is the reason why brokers allow you to open a mini/micro account. They know sooner or later you will get your leverage and/or stop losses wrong.

2. Most traders DO NOT know when to take profits. They look for 50-100 pip profits instead of 5-10 pip profits. The market gives you plenty of 5-10 pips profits every day, but only a few 50-100 pip profits a month. And the longer you stay in the market the bigger the chance of the market turning against you and hitting your trailing stop loss and/or stop loss. I read a thread (25-50 ema) where the originator of the system recommend that you put a 200 pip stop loss. Now that is plain silly. Profitable traders realize that playing $10 lots and only looking for 5-10 pip profits are a safer way to make money. If you can get a 5-10 pip profit every day then you can almost double your account in a year. And i still dont see the sense in entering 2 lots ($20) and then taking 1 lot ($10) profit at say 10 pips ($10x10pips=$100) and then close the rest of the trade after another 20 pips ($10x20pips=$200) or letting it run till it gets stopped put either by trailing stop or stop loss. Do you realize that when you close your trade bit by bit your profit is actually getting smaller and smaller. You made only $300 while getting 30 pips profit. When you closed your whole trade after only 20 pips you would have gotten $400 (20 pips x $20Lot=$400).

3. New traders all look for a "trading system" comprised of Indicators. Indicators are lagging and will NOT make you money in a ranging market which happens to be 70% of the time. So many systems are based on the 4hr chart. Do you know how many pips the market can move in 4 hours? By the time you get into a trade the big dogs are ready to take profit. That only leaves you with a small gain and sometimes even a loss.

4. Most traders don't know what is the driving force behind a currency. If you don't know what is driving the Aud, and Jpy, and Cad then rather not trade those currencies because you will end up getting burned as soon as the driving force changes course. (Aud get driven by goldprices. Jpy currently driven by carry trade. Cad driven by oilprices)

5. But the biggest mistake any trader can make it to take advice from an amateur trader. Amateur traders teach amateur traders to trade like amateur traders.

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Quoting dego

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Where can l get this book or is it a newsletter? Technical Analysis Of The Financial Markets--John J. Murphy It's a great book on technical analysis, most traders consider it like a Bible. It analyses John Dow theory in TA.

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Quoting Serega

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The more time I trade the more I understand that the success in trading dependes from the skills to control yourself and from the list of rules you wrote for yourself in order to decipline yourself

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