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The Reason why 95% Traders fail

  • #101
  • Dec 18, 2009 3:28pm Dec 18, 2009 3:28pm
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 gotta say, That is pretty funny


Just ask a "long-dong" to see his account win-ratio....
  • #102
  • Dec 18, 2009 3:33pm Dec 18, 2009 3:33pm
Quoting Liger86
Instead of thinking for reasons to take the trade - think of reasons not to take the trade.
And then miss 10x's in a row that would of worked then rush the 11th trade and lose, is also a popular mistake I make
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #103
  • Dec 18, 2009 5:57pm Dec 18, 2009 5:57pm
Pressure cooker situation in forex leads to losses. With high leverage, we need to either make a profit or hit a SL.

After hitting the SL, you see after a week, the prices have reversed and it is trading at your target.
  • #104
  • Dec 18, 2009 6:04pm Dec 18, 2009 6:04pm
Quoting kingfisher
Pressure cooker situation in forex leads to losses. With high leverage, we need to either make a profit or hit a SL.

After hitting the SL, you see after a week, the prices have reversed and it is trading at your target.

But the problem is without a SL sooner or later a move will come which will wipe you out, or atleast alot of your previous profits.

But with you take loads of smaller losses which add upto about the same.


So No SL or tight SL end of the day both traded to the same level of expertise ='s equally as screwed
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #105
  • Edited 7:05pm Dec 18, 2009 6:42pm | Edited 7:05pm
why nobody here can give out the correct answer???
I think every student of math finance in ivy league schools can give out the answer easily....

google "gambler's ruin" problem please.
  • #106
  • Dec 18, 2009 7:38pm Dec 18, 2009 7:38pm
Quoting Turveyd
But the problem is without a SL sooner or later a move will come which will wipe you out, or atleast alot of your previous profits.

But with you take loads of smaller losses which add upto about the same.


So No SL or tight SL end of the day both traded to the same level of expertise ='s equally as screwed
I know it depends....but how far out do you usually see yourself putting your stop-loss

I guess another way to ask the question, is how many pips are you willing to lose, on a "garden variety" trade...
  • #107
  • Dec 18, 2009 8:37pm Dec 18, 2009 8:37pm
Quoting Mark001
I know it depends....but how far out do you usually see yourself putting your stop-loss

I guess another way to ask the question, is how many pips are you willing to lose, on a "garden variety" trade...

Depends on your method, my method's quite good so getting a good win rate off 10-12SL (with spread), generally looking at 10 - 40 profit, 15's about average.

I aim to bail aswell if / when the trade starts to look like I'm on the wrong side, thats a works in progress though.

My first down week in AGES this week, Buying EJ near support on that freaky high speed sell off that started at 2am gmt or something stupid, shoulda bailed, support broke blew through my SL's stopped me out for 3x's my 9 average SL 18% gone in 5seconds

95% also lose, before it's a HARD HARD Game, we are trading against professionals that work together to trick us and take our money and it being so hard is what keeps me coming back for more
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #108
  • Dec 19, 2009 1:53am Dec 19, 2009 1:53am
Yeah, Update on earlier post, I am currently making money....as in have re-cooped my losses n have actually became profitable within a year! Last post described my 8 mos of candle watchin...this week turned $4,600 + gains. In any case I had balance of 2,500 11/15/09. Today 12/17/09 closed mkt @ 13,666.82 so has been about a month of great progress! This is one of the hardest endeviors I personally have attempted. But If you pay ur dues n learn from mistakes...It's quite possible to make money. Now I'm ahead of the market..this has been goal #1 - get back all the money I have involved. I'm over this hurdle and basically can quit...but have new goal...I'd like to get paid for the sometimes 12+ Hrs a day I spent watching candles! Forex still has me here, but not for long I'm hoping. Not sure how most view the 90%+ failure rate, But I can say I do not look at things this way. My outlook- anything is possible in life, If you are persistant and motivated you will succeed! You are only limited by your own thinking and belief system. However you percieve things...this is how they are to you! So dont think about your Odds of success. Think about making your success one of the odds! Patience and determination, invaluable. Watch the market to learn the market...n don't play with fake money less this is what you plan on spending. Cold hard cash will change every aspect of trading. It's ok if you are trying to learn a platform or check some indicator theory. I personally....Take trades when I see em..indicators seem to be there on the sideline cluttering my screen for most part, but I ain't moven them for now. Do look at em occasionally- S/R, trendlines,& fibs.....they are gold to me!
follow your intuition and don't be afraid to trade. Love to lose $ when things go against you because they can and will! I promise you will lose money at first and occasionally - get used to it. I consider myself a professional trader every day because it's your winning attitude and confidence that allows you to be successfull at anything. Far as I'm concerned, Trading is not really fundimental or technical....it's psychological, master this and the rest will grow on you!

Best of luck and keep donating if you have a system! Im thinkin......
  • #109
  • Dec 19, 2009 9:15am Dec 19, 2009 9:15am
Quoting bobowang
why nobody here can give out the correct answer???
I think every student of math finance in ivy league schools can give out the answer easily....

google "gambler's ruin" problem please.
Stay away from the "high-affecting" news by at least one hour...
Unless of course you are sure about the news. For example an FOMC meeting that you pretty much know it is going to be status-quo.

Trade in the direction of the 4 hour chart....Unless of course you are going to do a fibonacci type trade..

Get into the habit of drawing quick trend lines on the pairs you trade.
They are easy to draw, and they do stand out. Naturally look for head- and shoulder, penants, flags, channels, and all the rest of your old time buddies.

Draw support and resistance lines. And learn how to use them effectively. Drawing these horizontal lines can be a pain in the _ _ _ , in the beginning. It just takes doing it over, and over, and over...
But when you get it, it pays handsomely.

Of course money management....I don't think i need to go into this. Just keep the gamblers mentality TOTALLY Away..

You need to make this thing simple, and sort of fun to do. You need to be easy on yourself. The big thing is keeping it simple and EASY on yourself. Life is more than trading. I have to keep telling myself that.

If you don't have a high paying "day job", trade the micro sized account.

As much as is humanly possible, enter your trades using limits. Unless of
course you know that a market order is the thing to do.

When you are in a trade, set your stop loss, and limit. This is an art, but can be made relatively easy using support and resistance lines, and by using the average trading range.....It will come after a while, and then you will not be getting stopped-out constantly.... Its easier on the gut if you try to trade in the direction of the trend.

After you are in, try walking away from the computer for a while. Do the things that you need to do. Chores, and so on.

Come back and check. Titrate the situation. Once in a blue moon, adjust your stops. Just do not form bad habits about moving your stops.
You will end up broke.

I know this is just a drop in the bucket. But i hope it helps someone.

Have fun and make money.

Mark
  • #110
  • Dec 19, 2009 9:25am Dec 19, 2009 9:25am
Take a look at the journal section....

Quote
Zen Trading - $30 to $50,000 by 1 August 2010
Quote
4% A Day Forever
Trading is the game of fear and greed.
  • #111
  • Dec 19, 2009 10:15am Dec 19, 2009 10:15am
I'm relatively new to FX but having draw some very simple rules at the beginning have kept my trading a/c into profits.

1) Never trade more than 5% percent of my capitals on a single trade.
2) I cut my losses at 33% per single trade.
3) Never place a stop loss on the system, I actually write them down on a small note book and then execute them manually at the pre set price. A lot of FX brokers tend to manipulate prices to trigger stop losses.
4) Quit trading for the day if I lose more than 5 percent of my trading capital.
5) Quit trading for the day if I make more than 5 percent of my trading capital.
6) Stick to proper trading hours

This simple rules work for me but this doesn't mean that it will work for everyone.

Also I can add to the list above the following........find a FX broker that allow hedging, so you can lift a leg when a trend is shifting.

Regards
Nectarios
  • #112
  • Dec 19, 2009 10:16am Dec 19, 2009 10:16am
most people dont stick to there rules even when they know they are working great.
  • #113
  • Dec 19, 2009 11:12am Dec 19, 2009 11:12am
I see this thread has now degenerated to grinding though irrelevant detail, it's really quite simple, if you have no edge you fail, end of story.
The breaking of a wave cannot explain the whole sea.
  • #114
  • Dec 19, 2009 11:18am Dec 19, 2009 11:18am
Quoting Craig
I see this thread has now degenerated to grinding though irrelevant detail, it's really quite simple, if you have no edge you fail, end of story.
Your edge has to be to know when to get out.

All that newbie talk about trading times, H4 Trends etc won't help anyone if he doesn't get out of his trades at the right time.
  • #115
  • Dec 19, 2009 1:07pm Dec 19, 2009 1:07pm
Quoting Tjpld
Your edge has to be to know when to get out.

All that newbie talk about trading times, H4 Trends etc won't help anyone if he doesn't get out of his trades at the right time.
H4 trends are ludicrous, Forex generally has trends which last for 4hours so trying to spot them on a H4 is madness and why most people fail.

Forex isn't a Swing Traders Trending dream, it's too pulled around by news and different markets opening, Stocks are the only way to find such multiday / week trends and not the most popular ones as they just follow the Dow / nasdaq anyway.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #116
  • Dec 19, 2009 1:19pm Dec 19, 2009 1:19pm
Quoting hazelj80
reasons for failure once you get past brokers

1. your system sucks
2. your system doesn't suck that bad, your money management sucks. That means you suck!
3. both one and 2

those are usually root causes. everything else will relate to those root causes.
I already gave you guys your answers. everything else everybody says is related to these root causes. end of thread. have a good day!
  • #117
  • Dec 19, 2009 1:23pm Dec 19, 2009 1:23pm
Quoting hazelj80
I already gave you guys your answers. everything else everybody says is related to these root causes. end of thread. have a good day!
Read the entry post. The focus on systems is what turns them into losers.

Quote
Forex isn't a Swing Traders Trending dream, it's too pulled around by news and different markets opening, Stocks are the only way to find such multiday / week trends and not the most popular ones as they just follow the Dow / nasdaq anyway.

I wouldn't say that. There are more trends on everytime frame than you could imagine. Everything just depends on how you
define your trend. I had a nice 700 Pips short trade on E/U how would that be possible without strong trends?
  • #118
  • Dec 19, 2009 1:32pm Dec 19, 2009 1:32pm
that's because hardly anybody can come up with their own stuff. you'll always suck if you don't have your own systems because using someone elses isn't gonna get you very far at all with real amounts of money.

this still means that number 3 applies here! they and their system or style or whatever it is you want to call it sucks!
  • #119
  • Dec 19, 2009 1:35pm Dec 19, 2009 1:35pm
Quoting hazelj80
that's because hardly anybody can come up with their own stuff. you'll always suck if you don't have your own systems because using someone elses isn't gonna get you very far at all with real amounts of money.

this still means that number 3 applies here! they and their system or style or whatever it is you want to call it sucks!
Systems themself are a rather unimportant part of making a profit in the Forex Market. You'll find out the longer you trade. Also I don't see why everybody has to have his own unique system doesn't make any sense.
  • #120
  • Dec 19, 2009 2:03pm Dec 19, 2009 2:03pm
the reason people need to come up with there own stuff is because people by nature can never duplicate exactly what someone else does.

people copying everybody else won't get far this i know. The only thing I like forums for are when someone has a certain concept or idea that I may have tried to apply in the past

and systems aren't important. if you can trade 1 market, whatever you use should work on all markets...or at least all spot markets
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