The Reason why 95% Traders fail | Forex Factory

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The Reason why 95% Traders fail

  • #1
  • First Post: Dec 13, 2009 8:38am Dec 13, 2009 8:38am
... they attach to much importance to "Trading Systems".

http://img706.imageshack.us/img706/4343/wuehltisch.png
  • #2
  • Dec 13, 2009 8:43am Dec 13, 2009 8:43am
The answer is in my signature!!!

Forum's will ruin the world.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #3
  • Dec 13, 2009 8:49am Dec 13, 2009 8:49am
Quoting Turveyd
The answer is in my signature!!!

Forum's will ruin the world.
Yes your signature describes basically the same phenomenon.
Most retail traders just focus on the wrong aspects of trading.
Why? Because they learn it on Trading Forums. Who said that a System
is the first thing you need to profit in financial markets?
Every one just desperatly searches for a system that will get him
into the market at the right time and price.

Kind of remindes me of those rummage tables at Wal-Mart etc.
  • #4
  • Dec 13, 2009 9:11am Dec 13, 2009 9:11am
Quoting Tjpld
Yes your signature describes basically the same phenomenon.
Most retail traders just focus on the wrong aspects of trading.
Why? Because they learn it on Trading Forums. Who said that a System
is the first thing you need to profit in financial markets?
Every one just desperatly searches for a system that will get him
into the market at the right time and price.

Kind of remindes me of those rummage tables at Wal-Mart etc.

Well a system is a simply easy fix / solution to trading and people being people and basically lazy will ofcourse go there first, you'd of thought the absence of any profitable systems mechanical wise would be a give away as this isn't the correct way, but I'd bet 99.9% of us including me have been through this process.

But it all adds to screen time, which is key, 1000's of hours!!
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #5
  • Dec 13, 2009 9:55am Dec 13, 2009 9:55am
Oh what a painful subject. I had spent my time jumping from system to system trying to find the magical answer to trading. Someone should have slapped me. lol

I guess people will always try to find the best mechanical entry to take emotion out of it etc. Nothing wrong with finding something that works for you but for a new trader it is easy to get lost in there.
  • #6
  • Dec 13, 2009 10:22am Dec 13, 2009 10:22am
Quoting Tjpld
... they attach to much importance to "Trading Systems".

http://img706.imageshack.us/img706/4343/wuehltisch.png

Tjpld.... in your opinion, whats the most important to succeed in trading ?
  • #7
  • Dec 13, 2009 10:28am Dec 13, 2009 10:28am
Why not post reasons for the 5% winners (if that is even an accurate figure)?

TJPLD, I respect your opinion on a lot of articles I have read here on FF, but rather than add to the glut of nonsense, pointless and other dead-end threads taking up both pixel and storage space, give us your take on the 5% winning minority.

Its easy to point blame on things that don't work, so point out something that does.

BTW, I agree with your "system is not the answer" argument.
  • #8
  • Dec 13, 2009 10:33am Dec 13, 2009 10:33am
Quoting Limstylz
rather than add to the glut of nonsense, pointless and other dead-end threads taking up both pixel and storage space
wasted pixel space another topic for the climate change crowd
Invincibility lies in the defence, the possibility of victory in the attack
  • #9
  • Dec 13, 2009 10:54am Dec 13, 2009 10:54am
How dare we look down our noses at people in the trading system's forum. Just like everyONE of us..."those people" are looking for answers that we too sought or are still seeking.

People come to these sights because when starting out there has to be a beginning somewhere. There are no "schools" for trading. There are no "right or wrong" answers when developing as a trader. There are only lessons that must be learned.

Some seek systems because they don't know what else to try. Some seek systems because they are told (by gurus) to "trade robitcally". Some define a system as their "edge" and therefore are looking for the best edge they can find.

Each and everyone of us has been there and knows how that feels. The cynical disposition we feel toward "systems" and other babble that exist on these kinds of thread is only because we ourselves have participated and (dare I say it?) GROWN. We all grow and learn at different rates and in different ways.

How many here can say they've NEVER blown out an account, either demo or live. That too is part of the growth process and therefore we must also count ourselves in that 95% that fail.

Instead of ridiculing why don't we look for someone to assist or mentor. Put out a helping hand to someone who needs it. What's the worst that can happen...we develop connections that may prove profitable in the end...

Just my 2 pips worth.
  • #10
  • Dec 13, 2009 11:17am Dec 13, 2009 11:17am
Quoting gspajon

How many here can say they've NEVER blown out an account, either demo or live. That too is part of the growth process and therefore we must also count ourselves in that 95% that fail.

Just my 2 pips worth.
I didnt lost any cent on Forex just gain !!!

The most important parts in Forex is RRR and MM include discipline ofcourse everything else isnt that much important.Forex is Financial market and that means Risk Reward Ratio and Money Menagement is most important thing.

For Tjpld,

Forum is very good for new traders,very good place to learning and i learned a lot from this forum...

95 % Traders lost becouse :

Greed - Trade with just 1 or 2 months practice even is their practice months negative

MM-As i said the most important thing risk just 2% or 3 $ of balance

RRR-Trade minimum 1:2 or 1:3 RRR (very important)

That is 3 basics reason why 95 % Traders lost

Cheers
"Buy on fear, sell on greed !!!
  • #11
  • Dec 13, 2009 11:25am Dec 13, 2009 11:25am
Quoting gspajon
Instead of ridiculing why don't we look for someone to assist or mentor. Put out a helping hand to someone who needs it. What's the worst that can happen...we develop connections that may prove profitable in the end...
OK, I'm game... if you are willing to extend the hand of mentorship, I will put my neck and whats left of my dwindling account on the line...
  • #12
  • Edited 11:29am Dec 13, 2009 11:26am | Edited 11:29am
Some of those systems work pretty well, thv developed by Cobra for one. Ichimoku is actually a charting tool and system. A lot of those systems are put out for discussion and analysis. The problem is when people get lost in the details and don't know enough about the basics.

Forex schools can be very expensive and some of them actually push systems etc.

If a new trader asked me for help, I would push them towards the basics so that they could build a strong foundation. Having said that: my nephew has expressed interest in trading. I guarantee that he will not fall into the traps I did.
  • #13
  • Dec 13, 2009 11:27am Dec 13, 2009 11:27am
Quoting ForexSV
Tjpld.... in your opinion, whats the most important to succeed in trading ?

Exits. That's where your P/L is made. Which defines your Sucess Rate, Profit Factor, Avg. Profit/Loss and in the end your overall profitability.

To get the best Exits psychology is a huge thing too. How good is system that gives the potential to earn 100 Pips each trade with 30 Pips Risk when you exit after 20-30 because you're afraid you might end up with nothing? This way you're going to make you life very hard and you will probably end up losing.

RR doesn't mean anything there no way you can controll it. You can only set your risk the reward is up to the market. Your exit is what defines the RR after your trade. If you want to good RR why don't you just open a trade with 20 Pips risk and 100 Pips TP?
  • #14
  • Dec 13, 2009 11:35am Dec 13, 2009 11:35am
coz 95% lacks DISCIPLINE
  • #15
  • Dec 13, 2009 11:36am Dec 13, 2009 11:36am
Holly molly_indycator
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  • #16
  • Dec 13, 2009 11:45am Dec 13, 2009 11:45am
Quoting gspajon
How dare we look down our noses at people in the trading system's forum....
No one is laughing on any one coz we all have been there....i remember i use to be like to discover some thing which make me millioner by just switching on my PC...but now i know TRADING is also a serious business....but it can be just learnt by giving some blood,sweat,tears and time to market.
  • #17
  • Dec 13, 2009 11:51am Dec 13, 2009 11:51am
I disagree, it's not the focus on systems which is the problem, it's the focus on crap systems. But this is hardly unexpected for a site which is basically 99.99% newb white noise.
The breaking of a wave cannot explain the whole sea.
  • #18
  • Dec 13, 2009 11:51am Dec 13, 2009 11:51am
Quoting Turveyd
The answer is in my signature!!!

Forum's will ruin the world.
No dear i dont agree with you...forum does helps people,but one needs commonsense to understand which advice he shud take and which he shud ignore
  • #19
  • Dec 13, 2009 12:09pm Dec 13, 2009 12:09pm
Quoting swingtrader
No dear i dont agree with you...forum does helps people,but one needs commonsense to understand which advice he shud take and which he shud ignore
... yeah, but if you are a new trader - new to the forums, there is no such thing as common sense when trading is in volved. New traders are ignorant to the facts of trading because most haven't been properly taught.
  • #20
  • Dec 13, 2009 12:24pm Dec 13, 2009 12:24pm
Quoting Craig
I disagree, it's not the focus on systems which is the problem, it's the focus on crap systems. But this is hardly unexpected for a site which is basically 99.99% newb white noise.

It's hard for a new trader to know the difference between crapola and a solid method.
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