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5 Reasons Why Traders Lose

  • #41
  • Nov 27, 2013 10:02am Nov 27, 2013 10:02am
wasting time and money buying other people systems
  • #42
  • Nov 28, 2013 12:50am Nov 28, 2013 12:50am
Not being mentally prepared.

This is close to my weakness which I identify as "Not WAITING for the setup to unfold", and related to that is, "wishful thinking about what the current PA is about to do, ie, second guessing the PA".

Self disclosure is good, or is it not?
Good Trading to All ---- fairwind
  • #43
  • Nov 28, 2013 4:35am Nov 28, 2013 4:35am
Quoting fairwind
Not being mentally prepared. This is close to my weakness which I identify as "Not WAITING for the setup to unfold", and related to that is, "wishful thinking about what the current PA is about to do, ie, second guessing the PA". Self disclosure is good, or is it not?
i think we all been there before
  • #44
  • Nov 28, 2013 5:52am Nov 28, 2013 5:52am
Greed is a bad quality for Gamblers. Although this trait is present with all humans, a trader must learn to suppress it. When it comes to money the human response to greed is negatively high. So do not play with your hard earn cash by taking unnecessary risks while trading.
  • #45
  • Nov 28, 2013 7:29am Nov 28, 2013 7:29am
1. Not appreciating the significant time required (5 - 10 years +). I.e. that trading is on par if not harder than learning any other top professional skill, doctor, lawyer etc.
2. Focussing too much on psychology, when more time should be spent on methodology -> http://www.forexfactory.com/showthre...82#post7121182 for more details.
3. Purchasing worthless EAs and holy grail strategies - looking for a quick fix. Falling for the large amount of BS out there without asking for real PROOF/statements.
4. Not back testing a methodology over a long enough period of time. Market characteristics change over economic cycles, short back tests are not enough.
5. Not back testing objectively - "cheating". If a trade is a stop out, even by 0.1 pips it should be recorded as such. In a real life scenario one has to stomach these types of losses.

Good luck.
  • #46
  • Nov 28, 2013 8:36pm Nov 28, 2013 8:36pm
  • #47
  • Edited 5:48am Nov 29, 2013 4:50am | Edited 5:48am
Quote
5 Reasons Why Traders Lose

1, Wrong mental approach and lack of patience.
2, Low confidence in their analysis. Which gets even lower when they take a loss. Then they get angry and take a rash position, making a bigger loss, repeat.
3, They view the charts the wrong way.
4, No understanding of how the market moves.
5, They buy high and sell low and are unable to see that.
  • #48
  • Nov 29, 2013 5:05am Nov 29, 2013 5:05am
Quoting poundtrader
i got this from babypips i wanted to share with you guys, the num 5 reason i came up with, you can add to the list by posting a reply not having a proven trading methodology not understanding how the market works, key indicators, key numbers, and ideal times to trade. Risking too much per trade. Not being mentally prepared. Just flat out lazy- dont wanna put in the work

warren buffet could have been broke if he has been risking more than 5% his net worth
george soros broke the bank of england once and he stopped the risk he took years back
....know when to run###
  • #49
  • Nov 29, 2013 5:08am Nov 29, 2013 5:08am
'Not being mentally prepared' covers a multitude of sins.
For example, it includes :
1. Not being calm and relaxed
2. Not concentrating and focusing on the job in hand.
3. Not being in control of your emotions.
4. Lacking confidence and self-belief.

In my view, taking steps to being mentally prepared is a process most traders spend too little time and effort on - with sometimes disastrous effects.
  • #50
  • Nov 29, 2013 11:22am Nov 29, 2013 11:22am
Quoting GDR3k
{quote} 1, Wrong mental approach and lack of patience. 2, Low confidence in their analysis. Which gets even lower when they take a loss. Then they get angry and take a rash position, making a bigger loss, repeat. 3, They view the charts the wrong way. 4, No understanding of how the market moves. 5, They buy high and sell low and are unable to see that.

3, They view the charts the wrong way.
I'll shop after the drop
  • #51
  • Nov 29, 2013 3:29pm Nov 29, 2013 3:29pm
Quoting PoundTrader
Not understanding how the market works,
This IMO trumps all other reasons. If you don't have a thorough understanding of what is happening behind the charts, who is moving price, how, and why, why different underlying conditions cause different price action, you cannot have a sustainable edge. And until you have a sustainable edge, everything else is irrelevant - destructive tendencies such as fear and greed don't come into play until much later, when you are able to trade consistently and profitably. Most traders never even get close to that level, so fear and greed never become a significant factor.
si hoc legere scis nimium eruditionis habes
  • #52
  • Edited 5:14pm Nov 30, 2013 4:29pm | Edited 5:14pm
without a right concept in existing contekst and r.....d m... !
you are dead meat
With a good book and quality paper you can fine wipe your ass.
  • #53
  • Nov 30, 2013 5:26pm Nov 30, 2013 5:26pm
Quoting PoundTrader
I got this from babypips i wanted to share with you guys, the num 5 reason i came up with, you can add to the list by posting a reply Not having a proven trading methodology Not understanding how the market works, key indicators, key numbers, and ideal times to trade. Risking too much per trade. Not being mentally prepared. Just flat out lazy- dont wanna put in the work
If I had to pick a single reason from those, I'd pick "Not being mentally prepared", cause that one precedes most other reasons.
"To hold, you must first open your hand. Let go." - Lao Tzu
  • #54
  • Nov 30, 2013 8:13pm Nov 30, 2013 8:13pm
It's a Human DNA problem....................

Well Alien just learned something new about humans and trading tonight !

Tonight was my 10,000 human abduction, and 5th year of trading forex markets for Alien.

I have found out why 95% of all humans lose trading forex.

When a human's life is in disarray and confusion, like 1000's of years ago when humans did not understand,
volcano's, earth quakes, thunder and lighting and such.

They came up with all these gods to pray to, to help them make sense of the world they lived in. ( I am not saying there may not be a God).

I have found out that when humans get frustrated or confused, as in trading the Forex Markets, They simply start seeing things that are not there, and make things up to trade, just to help calm the human mind down, before a meltdown happens to themselves...............

So it is very difficult to trade the forex markets when the human mind wants to see something that is not there, because it can not make sense of the markets at that time.

Please don't over trade and sit on your hands for 20 minutes, and think about what you are about to do for those 20 minutes without making a trade.

To not be able to change a human mind is a terrible thing..............Alien........... ...
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The More You Learn, The More You Earn.....
  • #55
  • Dec 1, 2013 5:24pm Dec 1, 2013 5:24pm
OVERTRADING...not realizing proper risk calculations. with a 3:1 ratio of profit to risk, You need to be right 35-40% to show a profit. With commision of say 10 basis points you need to be right 66% of the time to break even (because of slippage and cost of doing trade/commissions) We all know even the best proffessional traders are happy to be right 50% right. what makes you think you can beat that.
  • #56
  • Dec 2, 2013 1:35am Dec 2, 2013 1:35am
think forex is a get rich quick scheme
  • #57
  • Dec 3, 2013 5:45am Dec 3, 2013 5:45am
Quoting forexalien
It's a Human DNA problem.................... Well Alien just learned something new about humans and trading tonight ! Tonight was my 10,000 human abduction, and 5th year of trading forex markets for Alien. I have found out why 95% of all humans lose trading forex. When a human's life is in disarray and confusion, like 1000's of years ago when humans did not understand, volcano's, earth quakes, thunder and lighting and such. They came up with all these gods to pray to, to help them make sense of the world they lived in. ( I am not saying there may...
well said
  • #58
  • Dec 3, 2013 10:35am Dec 3, 2013 10:35am
What gets me is that all of these people lose at trading but there are some very reputable fund managers out there that produce returns on clients money... so it cant be that bad. Maybe the fact is that there are too many people in on the game that shouldn't be or are not suited to be. I think the real reason that there are so many losers is by the retail nature of Forex. Trading is not meant to be retail and yet it is placed in the hands of people that quite often have no practical experience of trading. In a strange way we could think of it like putting a gun into the hands of a child.
  • #59
  • Dec 4, 2013 3:46pm Dec 4, 2013 3:46pm
Each individual will have a different answer to the previous question. In many cases, inexperience is the first culprit. "Rules are made ​​to be broken." One might reply that simply do not apply when the market is volatile environments. Unfortunately, many novice traders seem to choose sometimes, especially in these volatile times to break their own rules when they should not.
  • #60
  • Dec 4, 2013 7:56pm Dec 4, 2013 7:56pm
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