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Survey: Why 90% trader's failed?

  • #61
  • Oct 26, 2012 7:56am Oct 26, 2012 7:56am
1) Money management (which basically means greed)
2) Lack of discipline sticking to a working system.
3) Laziness...aka not back and forward testing strategies enough.

Most of the time I guess it's a mix of those.
  • #62
  • Oct 27, 2012 1:01pm Oct 27, 2012 1:01pm
Seriously now, why would you blow up an account ? I started trading my own account when i was 16 years old. My father was a trader and so am i, i dont see a reason for blowing up an account - except if you are really really brainless. Sorry for this hard words, but this is the truth. If you treat trading like a real business and not like gambling, you will never blow up your account - at least as long as you follow your money management rules and dont trade brainless.
  • #63
  • Oct 27, 2012 9:52pm Oct 27, 2012 9:52pm
1) Discipline
2) Greed

Lack of discipline sinks traders. And greed shows the power how much people could be greedy.
  • #64
  • Edited 1:56am Oct 28, 2012 1:43am | Edited 1:56am
Not sure but the poll adds up to 199.11%
Time hides Nothing
  • #65
  • Oct 28, 2012 2:18am Oct 28, 2012 2:18am
To be of benefit to a society in a free market economy speculators MUST LOSE.
90 % of traders are doing their job to help the economy -- they facilitate "price discovery" for the benefit of the producers.
If you are NOT losing, you are not doing your job. Bad on you.
  • #66
  • Oct 30, 2012 7:27am Oct 30, 2012 7:27am
According to me, "Wrong Trading Method/Unskilled" is the main reason behind failure of new traders.
  • #67
  • Oct 31, 2012 2:35am Oct 31, 2012 2:35am

Well to start, you have to look at what exactly brought the investor to the stock market. Was it a sound plan with achievable objectives? Or was it a hot tip they received from a friend or saw on TV. My point is that many traders have their fingers burnt because they did not take the time to define why it is exactly that they are investing in the stock market.
That same trader will unrealistic goals now heads to Google to look for the Legend of the Holy Grail. They search day after day looking for some magical indicator or trading system that will remove all risk from traders. Of course, there are trading gurus promising just that. Buy my system and I’ll show you a cant miss trading strategy that anyone can replicate. If it is truly this easy, again I ask, Why do over 90% of all investors fail?
The answer? Consistent and profitable traders are aware that the key to success in trading is NOT found in a technical indicator or trading system. Instead they understand to be successful in the stock market that you must develop a trader’s mindset. You must be able to handle the emotions of both winning and losing trades.

  • #68
  • Oct 31, 2012 2:38am Oct 31, 2012 2:38am
Well Said !

I'm 100% with you !

I saw that you are in Switzerland, Greetings from Neuchâtel.

Quoting angelnish
[left]Well to start, you have to look at what exactly brought the investor to the stock market. Was it a sound plan with achievable objectives? Or was it a hot tip they received from a friend or saw on TV. My point is that many traders have their fingers burnt because they did not take the time to define why it is exactly that they are investing in the stock market.
That same trader will unrealistic goals now heads to Google to look for the Legend of the Holy Grail. They search day after day looking for some magical indicator or trading...
Simplicity is the Ultimate Sophistication.
  • #69
  • Oct 31, 2012 3:38pm Oct 31, 2012 3:38pm
i think most traders lose because they start turning into philosophers than learning how to trade well.

it's like..oh i suck at trading because my mind wasn't right..give me a break...
NocturnalFX is no longer offering commercial services
  • #70
  • Oct 31, 2012 3:52pm Oct 31, 2012 3:52pm
Here's something to think about.
In the real world of "bricks and mortar" it MAY take five years or longer to reach a sustainable (profitable) business model.

Granted... and regardless of what anyone says, individual (retail) trading is NOT exactly the same as a "business".

Even so.....
there's open room for discussion
When the Joker is in the deck.. fear not and play it well
  • #71
  • Oct 31, 2012 5:38pm Oct 31, 2012 5:38pm
Quoting broketrader
Well Said !

I'm 100% with you !

I saw that you are in Switzerland, Greetings from Neuchâtel.
More Swiss people o/

< Basel & Lausanne
  • #72
  • Nov 1, 2012 3:18pm Nov 1, 2012 3:18pm
I believe that emotions get in the way of reading the charts properly. People rely on hope more than they should.
  • #73
  • Nov 2, 2012 2:50am Nov 2, 2012 2:50am
Quoting Slim Buffett
In the real world of "bricks and mortar" it MAY take five years or longer to reach a sustainable (profitable) business model.
Granted... and regardless of what anyone says, individual (retail) trading is NOT exactly the same as a "business".
In the real world after 5 years of existence there are only 9 out of 10 companies still on the market. The same thing in forex, just faster.

I put psychological issues on the top, because I think the psychology is the most specific reason of fail in forex. Other things are typical for the other types of business.
  • #74
  • Nov 2, 2012 7:02am Nov 2, 2012 7:02am
You are right meng.

So the question is, why do we let our emotions come in and derail our trades ?

My response is FEAR.

Ok but, why fear comes in ?

And there is multiple responses to that.

1. Because just before, you were greed and now the trade is turning against you.

2. You don't follow your plan or have you any plan ?

3. Eh! You have a plan but you deviate from it, because the market told you to do it ? In fact because you don't trust your plan.

And more often than not, it's a combination of all that, so after greed and fear, hope comes in and when the stop loss is hit, discouragement comes in.

Oh losing is normal and the next time I will do it better. Then you want to do it better, the greed man is still there with its litle voice telling you "Hey! you have to go bigger to get back what you have lost" and you start again...
Simplicity is the Ultimate Sophistication.
  • #75
  • Nov 5, 2012 11:12pm Nov 5, 2012 11:12pm
broketrader, I am totally agree with you. Emotions matter and the greed is on top. So in this case EA really can help us to being calm. Or experience can get it for us. Other way - change your psychology, make some charity, think about trading not about money.
  • #76
  • Nov 6, 2012 12:04am Nov 6, 2012 12:04am
The main thing is, to do things as you want to do.
There are many sentences and many mottos; motivation, fear, greed, books, discipline...all in round... and all this is unavailing.

The only thing you have to do is you have to want it.
That is the only thing if we pass away all about knowledge and talent.
Not everyone can be a trader !

I dont think about wishing to have money, car, house etc... I'm talking about what you are realy wishing. You have to find it !
If you'll want it, than you'll be making all right things to get it !

thinking "I think I want it" is not enaught

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  • #77
  • Nov 6, 2012 1:21am Nov 6, 2012 1:21am
Quoting meng88
broketrader, I am totally agree with you. Emotions matter and the greed is on top. So in this case EA really can help us to being calm. Or experience can get it for us. Other way - change your psychology, make some charity, think about trading not about money.

Hmmm, yes, an EA could do that but its somehow "disconnects" you from the market, I mean you become more some kind of EA supervisor than a trader and there is still the challenge to find THE EA that works.

My preference is to have a solid plan, to have 100% confidence in it and to trade it until it fails. Off course you must have confidence in your plan and that plan must tell you at any time what can be your exposure or risk in the market.

That way, you don't improvise anymore when things turn against you, and they will turn for sure, you just execute your plan leaving your emotions out.

You can take a loss making a good trade if it was according to plan or take a gain making a bad trade if it was outside the plan. In my opinion, this is a good philosophy to become a good trader and not a casino player.
Simplicity is the Ultimate Sophistication.
  • #78
  • Nov 6, 2012 6:14am Nov 6, 2012 6:14am
for me,that's why we are able to make money...
  • #79
  • Nov 6, 2012 11:52am Nov 6, 2012 11:52am
Quoting Americantek
Another way of putting the same idea about taking small profits and large losses is this analogy, follow along with me for a moment and and answer truthfully for yourself. If I presented you with a choice A) you can have $50,000 guaranteed or b) you can have a 50% chance of getting $100,000 and a 50% chance of getting $0 - Which would you pick? Be honest. Most everyone would pick option A right?

Now if the tables were turned and you had the option of A) LOSING $50,000 guaranteed or B) 50% chance of losing $100,000 and a 50% chance of losing...
That's so well said that i just had to thank you for the great post ( although 6 years later ). Cheers
  • #80
  • Nov 6, 2012 1:07pm Nov 6, 2012 1:07pm
90% fail simply because too little capital and too greedy...

becoming rich quickly ? , play lottery not forex.
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