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The Reason why 95% Traders fail

  • #81
  • Dec 17, 2009 10:59am Dec 17, 2009 10:59am
Quoting Liger86
Make everyone pay 10$/month for a membership on this forum and many of your problems will be solved.
I don't think it would solve any of my problems. It might solve some of FF's, but would probably create new ones at the same time. The people who can't afford it would drop out (as Turveyd noted). Some who can afford to pay would probably quit FF out of principle. Meanwhile the spammers with hidden financial agendas would still get cheap advertising, at $10 a month.
  • #82
  • Dec 17, 2009 11:41am Dec 17, 2009 11:41am
I'm too lazy to type it in ... check the attached image ... it's from Livermore's book ...

No, you don't have to work for success. No, someone wants to take care of you. The market cares for your well-being. Please believe, the milk will flow in your mouth forever and ever and ever. So will the money in your pockets. Just believe in it strong enough. You don't have to lift a finger, just follow the GURU. He will tell you how to trade so you will earn heaps of money.
Attached Image
forget about tomorrow, just steal away into the night
  • #83
  • Dec 17, 2009 12:57pm Dec 17, 2009 12:57pm
Wow....I didn't know Livermore was a racist. I've read the book, but somehow I must have overlooked this racist implication.
  • #84
  • Dec 17, 2009 1:08pm Dec 17, 2009 1:08pm
Quoting Troikaone1
Wow....I didn't know Livermore was a racist. I've read the book, but somehow I must have overlooked this racist implication.
erm...yes...
  • #85
  • Dec 17, 2009 2:25pm Dec 17, 2009 2:25pm
Quoting Petar_Serbia
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...

I think with RM & MM and Multiple Time Frames analysis & Hedging you could earn good money. Systems aren't really important, because indicators give much fault signs. Lookt at pivot points, Fibonacci, H4 and daily charts when trading with M5, M15 and look at weekly and monthly when trading daily and have a good Coping Style, e.g. cognitive behavioral ideas like "I trade when possibilities are greater for making "consecutive win". When I'm not able to say "yes", it seems to be OKAY now, ...then it might be better to wait for the next trading chance.


Kindest regards
  • #86
  • Dec 17, 2009 4:38pm Dec 17, 2009 4:38pm
Quoting Forexcube
I think with RM & MM and Multiple Time Frames analysis & Hedging you could earn good money.
I respectfully disagree. MM are a good start. MTF is useful. Hedging is a false safety feeling. If you are comfortable with your trading style, and your signals, just push the button.

Quote
Systems aren't really important, because indicators give much fault signs.
Not all systems are based on indicators... but a solid system, based or not on indys, IS important.

Quote
Lookt at pivot points, Fibonacci, H4 and daily charts when trading with M5, M15 and look at weekly and monthly when trading daily and have a good Coping Style, e.g. cognitive behavioral ideas like "I trade when possibilities are greater for making "consecutive win". When I'm not able to say "yes", it seems to be OKAY now, ...then it might be better to wait for the next trading chance.


Kindest regards
Personally I don't keep switching TFs. On 1M its up, on 15M down, on 4h is ranging, on W1 is on a major S/R. The point is what do you do with that info, in the TF you choose to trade?

I just missed one thing you didn't mention: Martingale.... just kidding..

Cheers!
Many share my views with me. But I don't share them with them...
  • #87
  • Dec 17, 2009 5:11pm Dec 17, 2009 5:11pm
The forex game is designed in such a way that loosing and wiping out accounts are real possibility.

We loose:

1) Because of high leverage

2) Because of mad random movement.
  • #88
  • Dec 17, 2009 5:23pm Dec 17, 2009 5:23pm
Quoting kingfisher
The forex game is designed in such a way that loosing and wiping out accounts are real possibility.

We loose:

1) Because of high leverage

2) Because of mad random movement.

Yes it's a game setup by big money so that we lose, part of this game is mis information teaching us the stupid ways to trade while convincing there the right way to do it.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #89
  • Dec 17, 2009 5:38pm Dec 17, 2009 5:38pm
over analyzing kills too
  • #90
  • Dec 17, 2009 7:02pm Dec 17, 2009 7:02pm
Where does the number 95% come from, sounds high to me?

Is this number for failed new players right at the beginning or overall where a trader just gives up and be done with forex?

I see a lot of successful traders here giving their opinion, are all the 5% winners stuck on this forum board?
  • #91
  • Dec 17, 2009 8:31pm Dec 17, 2009 8:31pm
Quoting pa18
Where does the number 95% come from, sounds high to me?

Is this number for failed new players right at the beginning or overall where a trader just gives up and be done with forex?

I see a lot of successful traders here giving their opinion, are all the 5% winners stuck on this forum board?

yes most probably...they learn how to be successful and then they get stuck in here
  • #92
  • Dec 18, 2009 2:29am Dec 18, 2009 2:29am
Most important is patience..after that..

1.Risk ( 5% equity ,Weekly maximum ) per trade.
2.Leverage ( max. x5 )
3.Trade by trade.
4.Successful trade...repeat steps 1-3
5.When is SL hit...no more trading.Wait for next week.
6.Record trade with a brief description.



Next week, same story...
Trader from Croatia
  • #93
  • Dec 18, 2009 3:46am Dec 18, 2009 3:46am
Quoting pa18
Where does the number 95% come from, sounds high to me?

Is this number for failed new players right at the beginning or overall where a trader just gives up and be done with forex?

I see a lot of successful traders here giving their opinion, are all the 5% winners stuck on this forum board?
I don't know that the 95% number is entirely out of wack, its not to different from the % of new businesses that either make it or don't. Of the 4352 traders online now 5% or 217 would be in the successful group if you just went by the 5% are profitable assumption , however given that FF is the only decent forex trading forum one would assume that the population of successful ff members is higher than the oft quoted 5%.
  • #94
  • Dec 18, 2009 5:58am Dec 18, 2009 5:58am
You are so right-on.
When I go by a system for my trading, I barely win 30% of the time

When I go by what I know to be true, such as simple
support and resistance, trendline, actual true range, when placing trades, I win.

I also find myself quite willing to take profits at 40-60 pips.

Trying to bat homeruns has never worked for me.

I also try to be quite aware of what time of day I am trading.

This all come thru repeated exposure, and like you said, screen-time !

Take Care, Mark
  • #95
  • Dec 18, 2009 6:30am Dec 18, 2009 6:30am
You also need to have an insane amount of patience which most people are not born with. The "experience component" of trading any vehicle succesfully cannot be understated. You literally need thousands of hours of screen time studying price action. Unfortunately, you need some luck because if you study thousands of hours with the wrong perspective, it can be a waste of time.

Indicators are also a big contributor to trader failure. When a tech savvy person looks at a chart for the first time; they naturally attempt to treat it like a mathematical formula or a function such as Y=mX+b. Then, in comes the indicators; which is not the way to go. Indicators are a derivative of price action. Don't focus on the derivative, go straight to the source.
  • #96
  • Dec 18, 2009 6:42am Dec 18, 2009 6:42am
Quoting Troikaone1
You also need to have an insane amount of patience which most people are not born with....
very well said,and all the comments above are worth to read.
  • #97
  • Dec 18, 2009 7:58am Dec 18, 2009 7:58am
@Troikaone1
Quote
Indicators are a derivative of price action. Don't focus on the derivative, go straight to the source.
That's the point.

Don't fight the tape.
Trader from Croatia
  • #98
  • Dec 18, 2009 9:48am Dec 18, 2009 9:48am
Quoting pa18
Where does the number 95% come from, sounds high to me?

Is this number for failed new players right at the beginning or overall where a trader just gives up and be done with forex?

I see a lot of successful traders here giving their opinion, are all the 5% winners stuck on this forum board?
Numerous brokers have said that the % of their clients that are break-even or profitable is higher than 5%.

The 95% rule is vague and oft-repeated, and while I personally think it's a bogus made up number, it still serves as a good warning message to those who want to succeed in trading (succeed defined as being able to trade for a living); it's incredibly difficult to ever reach that point, and it's way more likely that you never will. Even assuming you are already a break-even trader, it's still going to take a long time for the average person (with debt, life obligations, etc.) to build up enough capital to make trading for a living a realistic endeavor, and that's with a full-time job on the side.
  • #99
  • Dec 18, 2009 10:27am Dec 18, 2009 10:27am
Quoting smittens4212
Numerous brokers have said that the % of their clients that are break-even or profitable is higher than 5%.

The 95% rule is vague and oft-repeated, and while I personally think it's a bogus made up number, it still serves as a good warning message to those who want to succeed in trading (succeed defined as being able to trade for a living); it's incredibly difficult to ever reach that point, and it's way more likely that you never will. Even assuming you are already a break-even trader, it's still going to take a long time for the...
I have a different approach on the "success" trading meaning. I probably will never be trading for living (for that I should leave my country, for instance) but I trade Fx as a tool in my portfolio. Since I trade a small account (comparing to those who really trade for living) and can be profitable on a way that is better that the average bank/funds/bonds investment, I consider that I have success in trading. Just my humble opinion... I tend to see the life (and trading) as a wide range of gray tones, not a black OR white way.... and no offense intended at all...

Cheers, and good trading!
Many share my views with me. But I don't share them with them...
  • #100
  • Dec 18, 2009 11:23am Dec 18, 2009 11:23am
Instead of thinking for reasons to take the trade - think of reasons not to take the trade.
ok Friendo? This is madness!?!? - THIS, IS, FOREX!!!
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