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Why do 99% of the people who wants to be traders fail?

  • #161
  • Nov 12, 2011 8:04am Nov 12, 2011 8:04am
Quoting AaronWard
Many thanks for the vouch Jag.

More and more I am focusing on naked charts. I am finding that the problem with indicators is that not that they provide too much information and are confusing. Quite the reverse, they provide too little information and they provide it too slowly. Price action, chart patterns and the two most basic technical tools, the ma and the trend line can provide the same information that charts do.

For example, looking at swings hi-low will show the market cycles just as a stochastic indicator. Sequential trendlines with...
np buddy.

Another very good post, I agree 100%.

Naked charts keep me focused on PA, it is amazing how trading becomes like second nature once you simplify things.

Good trading to you.
  • #162
  • Edited 1:33pm Nov 12, 2011 1:15pm | Edited 1:33pm
Here's a question for anyone..Have you ever heard the expression "back and fill"...you may know what it means but do you know the why, who and how of fulfilling that expression?..the term backing and filling is used a lot in the stock market, but its also used in all markets..its good to know why that expression is used and by who..does anyone know the who and why? Be interesting what your thoughts are..its very important in time/price cycles.
entry - 1.29250 s/l 200 pips
  • #163
  • Nov 12, 2011 2:30pm Nov 12, 2011 2:30pm
No ea can make a profit using support and resistance trading over time..they can for a short period of time but they all crash and burn..You'd think they'd be able to beat the market, as they are able to avoid the many weaknesses that traders have..they say all ea's are designed on back testing..actually they all fail because they are predicated on support and resistance trading..that's another clue that support and resistance trading doesn't work..we all love our charts..we love to study and gaze at them for endless hours, so why do 99% lose?..so when you hear someone say charts don't work, its upsetting..well i'm tellin ya..they don't work over time, they will break you because you don't know the time cycles..only a very few do and they won't give you any clues, because if you find them out you can exploit them, but they are impossible to find. Believe me, if you continue to use s/r you will fail.

Think about all the guys in FF that create ea's..they all want you to believe they're onto something special..well they aren't and they know it..they prefer that you don't know it..but what I stated above is the truth. So when you see guys that claim to be programmers, they may have a hidden agenda..its easy for them to take advantage. I expect to be attacked for making those comments..we'll see.
entry - 1.29250 s/l 200 pips
  • #164
  • Nov 12, 2011 8:17pm Nov 12, 2011 8:17pm
Quoting @40
I think the main reason is that 95% want to make millions from a thousand bucks! And if possible - in no time

Yep. That's me when I first went live. Now I'm back to reality. Man, I've got a lot to learn.
Time turns trend. - W.D. Gann
  • #165
  • Nov 12, 2011 8:32pm Nov 12, 2011 8:32pm
Quoting normfx
No ea can make a profit using support and resistance trading over time..they can for a short period of time but they all crash and burn..You'd think they'd be able to beat the market, as they are able to avoid the many weaknesses that traders have..they say all ea's are designed on back testing..actually they all fail because they are predicated on support and resistance trading..that's another clue that support and resistance trading doesn't work..we all love our charts..we love to study and gaze at them for endless hours, so why do 99% lose?..so...
Pivot Point with S/R has been the most profitable way of trading for me. Buy below the Pivot. Sell above it. aka Buy Low, sell high. The majority of the time. Find out what the HLC was for the last session to determine where the new HL will be for the next session. I just like how price reacts to S/R lines and PP.
Time turns trend. - W.D. Gann
  • #166
  • Nov 12, 2011 11:43pm Nov 12, 2011 11:43pm
Quoting ForExtraPips
Pivot Point with S/R has been the most profitable way of trading for me. Buy below the Pivot. Sell above it. aka Buy Low, sell high. The majority of the time. Find out what the HLC was for the last session to determine where the new HL will be for the next session. I just like how price reacts to S/R lines and PP.
Yeah, I think most people find this. Worst case scenario an S/R is good for a 15 pip bounce. Sometimes it turns into 500-1000 pip runner though if the market reverses.

I wouldn't worry about Norm too much. Junior members that show up with catchy names, well developed arguments and a "secret system" that they have and might be willing to share are pretty suspect. Typically their business revolves around catching suckers, not pips.

BTW your signature is absolutely hysterical.
Kill the ego, or it will kill the mission.
  • #167
  • Nov 13, 2011 8:41am Nov 13, 2011 8:41am
You would think that you could beat the game if you dropped all the way down to using only 2% of your total investment..imagine being told you shouldn't risk more tha 2% of your working capital..that means you should leave 98% alone lol..and there are even those that will tell you they only risk 1% lol..imagine having a $5000 account and only risking 50 bucks..what does that tell you about the experts losing streaks..they can lose way over a dozen trades before they win one..if their winning percentage was so great why would they tell you to never risk more than 2%..actually that's excellent advice..if you're going to use charts, at least you will last longer before going broke..keep in mind..everyone that posts to my questions are part of the 99%..they don't like me telling you they're all losers...hey, its the stats, not me..I'm just tryin to keep you from wasting your time starin at charts and losing all your hard earned money..you should be spending that time and money on your family.
entry - 1.29250 s/l 200 pips
  • #168
  • Edited Nov 14, 2011 12:45am Nov 13, 2011 10:15am | Edited Nov 14, 2011 12:45am
To give you an example, I've been given the password to a live account that doesn't use support and resistance trading..trades have been placed in it going on 23 months, average about 2 trades a day..The account started out with $500 and is now up to $4000..the winning percentage is over 97% using a 300 pip stop loss..the longest win streak was about 200 trades and the risk has been set recently at 13%.

The account password will be released free to the public..I will post the password to it in FF when they prove that it can reach the 24 month mark successfully..so no need to buy anything from me. You will be able to watch the account trade live 24/5 and you will be able to demo all the trades free if you like..there's enough money in Forex for all. Btw, the password will be available free forever.

I'm hoping there are some posters in FF that know a little about time cycle trading..if you know anyone please direct them to this thread..maybe we can crack this theory..once the account is released, studing how and where the trades are placed should be fun...what we need to know is why and when the trades are placed...trust me, this is the only way to trade successfully..you know deep down that support and resistance trading is killing you..THAT'S the reason 99% lose and you are one of them obviously..take no offence..its the stats..let change that.

Btw, If I'm attacked for trying to help I obviously will stop posting.
entry - 1.29250 s/l 200 pips
  • #169
  • Nov 15, 2011 2:31pm Nov 15, 2011 2:31pm
Quoting snakeye
Hello friends,
I have been thinking about this for a long time, yet cannot find THE answer to the question, why does 99% of the people who wants to be traders fail? What is that 1% of people that has it or has figured it out, that we cannot figure it.

After blowing a few accouts, I have been in quest to find the answer. I have read book after books, read blogs after logs, yet none of them really tells you what it is? then again if they know, they might keep it a secrete to benefit them. After all, we are talking about taking somebody else's money....

To the OP:

How is it possible to trade against the market and win? Shift your current position to that of the market, and you have to work very hard at not making a profit by definition.

The key is to keep your transaction costs low during the period where you are re-positioning your capital into alignment with what the market wants to do. That is done by noting those areas within the market where it likes to either Swing to a new high or new low and/or where the market likes to continue with its current Momentum (magnitude). Make sure the Daily Range still has some place to go for the remainder of the trading session and you will find it rather difficult to not make a profit consistently.

No magic. No array of countless indicators. Just a horizontal line on a chart and some insight into what makes a market trade-worthy. Find the markets with the biggest Daily Range, draw a good line in the sand where the market likes to Swing or continue its Momentum, then defend that line by re-positioning your capital to line-up with wherever the market wants to go.

Your biggest question in this business should be: Where do I take my profit? Not: How do I make a profit?
Y = MX + B. The most important price level of all.
  • #170
  • Nov 17, 2011 6:46am Nov 17, 2011 6:46am
Quoting normfx
You would think that you could beat the game if you dropped all the way down to using only 2% of your total investment..imagine being told you shouldn't risk more tha 2% of your working capital..that means you should leave 98% alone lol..and there are even those that will tell you they only risk 1% lol..imagine having a $5000 account and only risking 50 bucks..what does that tell you about the experts losing streaks..they can lose way over a dozen trades before they win one..if their winning percentage was so great why would they tell you to never...
Hi normfx,

You raised an interesting point here. Winning percentage doesn't mean anything. You can have a 60% winning rate but still loses money if your average profit is smaller than your average loss.

Professional traders I know of, such as Peter Brandt have a winning trades percentage of 30% or even less and he risks about 0.06% to 0.08% per trade - a super conservative number to us newbies. Yet he still managed to earn an average compounded ROR of 135% per year!

The rationale behind taking 2% - 1% per risk is to enable your account to survive through losing drawdowns - a statistical reality and come out healthy enough to take a good trade with high R/R reward.
"Nature's law" is called "Reason". When perfectly understood by human it is
  • #171
  • Edited 2:23pm Mar 31, 2012 2:04pm | Edited 2:23pm
Quoting ubeee
I know I'm going to be hated for what I'm going to write, but I'm going to do it anyway because I think it could still be enlightening (to few).

GENERIC PART
Most of the people who wants to be traders fail because most of the people of the world fail anyway whatever they try to accomplish. Most of the people have fat wives, ugly children, small houses, minimal education, zero self-esteem, boring (if not unbearable) jobs and accept to succumb all the time to their arrogant bosses at work and hysteric relatives at home. I know it is very...
Dear Traders,
This is my first post in FF.
I found paradoxically the rookie section have the wisest traders around and valuable insight! I am glad that I am here!
  • #172
  • Apr 9, 2012 10:26am Apr 9, 2012 10:26am
Hey,
I think that we could fit Pareto principle for that
  • #173
  • Apr 9, 2012 11:27am Apr 9, 2012 11:27am
Because if there would be more traders who win than who lose brokers will go bankrrupcy and forex market doesn't exist . That's the harsh reality my fellow traders.
  • #174
  • Apr 9, 2012 12:10pm Apr 9, 2012 12:10pm
most think they have to trade every day every hour, i know a guy who know how to get 15 pips a day at a certain time, he does once a day for about 15min then he's done for the day.
  • #175
  • Apr 10, 2012 6:41am Apr 10, 2012 6:41am
I don't think that traders should open orders every day. Any business needs some rest.
  • #176
  • Apr 28, 2012 6:55am Apr 28, 2012 6:55am
when your emotions die you will become a succesful trader. my 2 cents
  • #177
  • Apr 30, 2012 4:15am Apr 30, 2012 4:15am
Quoting TravoltaImp
when your emotions die you will become a succesful trader. my 2 cents
it's true...but I doubt if they die)
  • #178
  • May 1, 2012 5:40am May 1, 2012 5:40am
Thank you for the information
  • #179
  • May 9, 2012 4:21am May 9, 2012 4:21am
Hello my friends,

This is the best sentence i've ever read, to summarize how to trade the Forex market!

Quoting PoundTrader
most think they have to trade every day every hour, i know a guy who know how to get 15 pips a day at a certain time, he does once a day for about 15min then he's done for the day.

Determination is the Key!

Happiness for all.
  • #180
  • May 9, 2012 7:49pm May 9, 2012 7:49pm
My 2 cents on why most traders fail is that we as humans try to go for the quick buck so quite often dont give trades a chance to come good but the other main reason is that we dont like to admit when we are wrong.

I personally think that when we see a profit we are so shocked we rush to take the profit and bank it but when we see a loss we stick our head in the sand adamant that we are correct and then trades go out of control. Its human nature and the brokers know that hence its a win win for the market
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