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The Reason why 95% Traders fail

  • #41
  • Dec 13, 2009 6:23pm Dec 13, 2009 6:23pm
Quoting Jhig
Whats scary is the Eur/Usd thread in the Interative section. That entire thread is frightning, even for an experienced trader. You got rookies calling out (with conviction) trading levels and trading advice to other noobies. In addition, traders that has lost 50% of equity in less than 24 hours now asking for advice and trade signals. Wow. But when you give them advice it's blowed off as if I you're the inexperienced trader. So, you asked wh 95% if traders fail ... I believe it's because they don't listen and think they have a grasp of the market....
As previously said, the human race is basically lazy, quick easy X crosses Y solution is all there after sadly it's not that easy, when they hear this there off.

My M1 method's been hard earned and the few that have stuck at it are doing really well, so don't give up on trying to help people most won't list but some might.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #42
  • Dec 13, 2009 6:24pm Dec 13, 2009 6:24pm
Quoting Jhig
Whats scary is the Eur/Usd thread in the Interative section. That entire thread is frightning, even for an experienced trader. You got rookies calling out (with conviction) trading levels and trading advice to other noobies. In addition, traders that has lost 50% of equity in less than 24 hours now asking for advice and trade signals. Wow. But when you give them advice it's blowed off as if I you're the inexperienced trader. So, you asked wh 95% if traders fail ... I believe it's because they don't listen and think they have a grasp of the market....

Good point.
  • #43
  • Dec 13, 2009 6:48pm Dec 13, 2009 6:48pm
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.
Best post to date in the thread, IMO.

What is the difference between a system, a method(ology), a plan, a strategy, an approach, .....? Semantics. Call it whatever you want, but without some kind of consistent, measured, premeditated, statistically-proven approach, one is only guessing.

95% (or whatever the number is) fail because they want to be spoon-fed, and because they read the cliche-ridden threads on forums, instead of having the confidence to conduct their own research, and then follow it through by implementing the results.
  • #44
  • Dec 13, 2009 6:55pm Dec 13, 2009 6:55pm
Quoting hanover
Best post to date in the thread, IMO.

What is the difference between a system, a method(ology), a plan, a strategy, an approach, .....?...
There is also the "Correct way to trade" you must trade of H4 you must use indicators, there correct ways passed down by the big players to take our money and there defended on here cause thats what they heard first.

NOTHING can predict the future, all we have to go on really is the current direction and the hope the current direction will hold long enough to take some profit, when you accept this it all becomes clear atleast, easy no but clear
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #45
  • Dec 13, 2009 7:29pm Dec 13, 2009 7:29pm
Imho, many failed trades are the result of a lack of thought and analysis about the market conditions before pulling the trigger.

The analysis that should take place before the trade is usually conducted once the stop has been hit by listing 10 reasons why the trade should not have been entered into in the first place.

Perhaps a better approach would be to look for reasons not to take a trade, rather then to look for reasons to take it.

I was once advised that the difference between ordinary traders and great traders is that the ordinary traders know the rules and that great traders know the exceptions to the rule.
  • #46
  • Dec 13, 2009 9:20pm Dec 13, 2009 9:20pm
Quoting Tjpld
... they attach to much importance to "Trading Systems".

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

LOL! That's so true!

You know, when I started in forex, I was constantly in "Trading Systems' and it confused me even me.

Now after learning 'how to trade', I rarely go there anymore, funny that
  • #47
  • Dec 13, 2009 9:54pm Dec 13, 2009 9:54pm
All traders look for a sure thing when they start, in search of the holy grail... they wont rest till they find it. Since there is no such thing most will be forever searching until the "eureka" moment is met.
  • #48
  • Dec 13, 2009 10:11pm Dec 13, 2009 10:11pm
Blessing to everyone.

Very interesting thread...this topic really an eye catcher.

Is really ? percentage is correct?

Then what time frame/period is it been monitored, for this judgement?

Could we really a have a true picture, or is it just a Mind Dynamics

to lead us into failure? (not the thread owner..hope not been misunderstood)

What do you guys thinking?
  • #49
  • Dec 13, 2009 10:22pm Dec 13, 2009 10:22pm
A discipline that everyone can practice to improve your trading, is to practice saying 'No!' to things that are bad for you. Let's say it's obvious that the market it going against your trade, should you stay in the trade? NO! Why do we stay in trades that are loosing money? We don't want to face the loss. But the loss is bad for you.
We are trained to say 'Yes', not 'No'. In order for people to get us to do what they want us to do, they need to get us saying, 'Yes', 'Yes', 'Yes'. Every sales person on the planet is trained to get you saying, 'Yes' right before they ask you to buy. The world wants you to do what it wants you to do. You are not supposed to say 'No' to your boss, or your school teacher or the ad on TV trying to get you to buy something. Just say 'Yes'. Do what you are told.
Practice saying 'NO!' to things that are bad for you. If you can't say 'NO!' to things that are bad for you, then how are you going to cut your losses when you should? Ask yourself whether you can say 'NO!' to things that are bad for you. If you can't, then start practicing saying 'NO!'.
The other thing that can help is anger. Studies have been done that show that people often make better decisions when they are angry. Have you heard stories of traders that lost money, got really mad at themselves, and clawed their way back? Anger can help you. If you get angry that the market is going against your trade, and say 'NO!' to staying in the trade, then you have the power to take action.
  • #50
  • Edited Dec 14, 2009 12:05am Dec 13, 2009 11:46pm | Edited Dec 14, 2009 12:05am
Quoting tradescriptr
A discipline that everyone can practice to improve your trading, is to practice saying 'No!' to things that are bad for you. Let's say it's obvious that the market it going against your trade, should you stay in the trade? NO! Why do we stay in trades that are loosing money? We don't want to face the loss. But the loss is bad for you...............

.... If you get angry that the market is going against your trade, and say 'NO!' to staying in the trade, then you have the power to take action.

Hello tradesciptr,

Read again your above quotes!

Why do you have to think like this? .. lol

p/s Just use stop loss button, all trading platform have it.
  • #51
  • Dec 13, 2009 11:58pm Dec 13, 2009 11:58pm
Quoting Tjpld
The Reason why 95% Traders fail
If you find forex trading difficult go for managed forex account.
  • #52
  • Dec 14, 2009 12:49am Dec 14, 2009 12:49am
Hunger for action and always looking for more and more money trying to catch each and every pip from market...
  • #53
  • Dec 14, 2009 1:08am Dec 14, 2009 1:08am
Quoting Turveyd
There is also the "Correct way to trade" you must trade of H4 you must use indicators, there correct ways passed down by the big players to take our money and there defended on here cause thats what they heard first.

NOTHING can predict the future, all we have to go on really is the current direction and the hope the current direction will hold long enough to take some profit, when you accept this it all becomes clear atleast, easy no but clear
I wouldn't necessarily say that trading the H4 timeframe using indicators is the only "correct way to trade"...... that's if I understand you correctly.

I agree that nothing can predict the future with any real certainty, but there are certain setups that offer > 50% probability of direction, and can therefore give one's entries an edge. But of course much depends on one's approach; it's all about knowing what to look for, and then waiting patiently for these setups to occur.

I also agree that we have no real way of knowing how long a move will last, it's a case of trying to stay in the move as long as possible, without giving too much back at the end....... a tricky balancing act. Much also depends whether one is taking trend-based, or counter-trend, trades.

Well, that reflects my current approach; everybody ultimately finds their own way.
  • #54
  • Dec 14, 2009 2:38am Dec 14, 2009 2:38am
The Reason why 95% Traders fail is that nobody can predict the market movements and also the world situation. It is win somedays and it is lose somedays.
  • #55
  • Dec 14, 2009 3:23am Dec 14, 2009 3:23am
Quoting hanover
I wouldn't necessarily say that trading the H4 timeframe using indicators is the only "correct way to trade"...... that's if I understand you correctly...
I think Turveyd was being facetious...
  • #56
  • Dec 14, 2009 3:25am Dec 14, 2009 3:25am
Quoting Tjpld
... they attach to much importance to "Trading Systems".
No, it's arrogance - this stops a would-be trader from realising that it's his or her own psychology that prevents success...

...and I reckon it's more like 99% these days (just to cheer you all up on a frosty Monday morning ).
  • #57
  • Dec 14, 2009 4:12am Dec 14, 2009 4:12am
Just curious, who did the statistics and came out with the results that 95% of the traders lose money. I've heard people saying it's actually 80% or it was just a "myth". The 95% percentage was also commonly tied about traders "lose and quit" or "losing money at all times". Anyone can clarified?
http://forums.babypips.com/images/misc/progress.gif
"Nature's law" is called "Reason". When perfectly understood by human it is
  • #58
  • Dec 14, 2009 5:14am Dec 14, 2009 5:14am
Quoting Caesar95
Just curious, who did the statistics and came out with the results that 95% of the traders lose money. I've heard people saying it's actually 80% or it was just a "myth". The 95% percentage was also commonly tied about traders "lose and quit" or "losing money at all times". Anyone can clarified?
I agree 95% is too high. The true statistics should be 75% or 80% of the traders lose money. Everywhere I read 95% of the traders lose money.
  • #59
  • Dec 14, 2009 8:36am Dec 14, 2009 8:36am
Quoting Caesar95
Just curious, who did the statistics and came out with the results that 95% of the traders lose money. I've heard people saying it's actually 80% or it was just a "myth". The 95% percentage was also commonly tied about traders "lose and quit" or "losing money at all times". Anyone can clarified?
http://forums.babypips.com/images/misc/progress.gif
95% is a number that's often spread among the trading community. There are no real statistics but I've come a cross a paper from the German Parliament about CFD Trading and Customer Protection. They asked the two biggest CFD brokers for how long a typical CFD account lasts. They said that accounts with 1-5k EURs are usually inactive after 0.5-1 year. Accounts with >5k Euros become inactive in 3 years on average.

So a 95% failure rate of all of those who wanted to make a profit trading the markets might not be that exaggerated.
  • #60
  • Dec 14, 2009 8:43am Dec 14, 2009 8:43am
Quoting Tjpld
95% is a number that's often spread among the trading community. There are no real statistics but I've come a cross a paper from the German Parliament about CFD Trading and Customer Protection. They asked the two biggest CFD brokers for how long a typical CFD account lasts. They said that accounts with 1-5k EURs are usually inactive after 0.5-1 year. Accounts with >5k Euros become inactive in 3 years on average.

So a 95% failure rate of all of those who wanted to make a profit trading the markets might not be that exaggerated.
I think money management/ risk management has a lot to do with it. Trading methodology might be number 2 imho. I also think people might take a couple of big losses and just move on to something else. Those with a serious interest in learning stick it out and eventually become part of the 5%. Perhaps?
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