5 Reasons Why Traders Lose

So Kevingreene is PoundTrader?

5 Reasons Why Traders Lose

5. Clueless, Delusional and Ignorant - (NOT knowing the difference)
Everybody lives in their own world subjectively with their own perceptive and reasoning. The magnificent human mind also comes with great magnificent flaws. It has a mechanism to protect its ego, self and subjective ideas. It clings to it to maintain its sanity and structure. Simply put; "You don't know what you don't know." The mind loves familiarity and it will fight vigorously to maintain its state of comfort. Ironically, "not knowing" takes less effort and energy compared to learning a new idea or "changing". So the mind will more likely to create its own story why you are not clueless, delusional and ignorant. And you will continue to live in your own stress-free-little-world. And any (wo)man has the right to do so.

4. They think/believe they can predict the future
Another flaw within the human mind. The mind has a "pattern-seeking" mechanism and this helps it to learn, develop and to connect the dots. This "pattern-seeking" mechanism also comes with a flaw; it also find patterns (correlations/connections) where there is none. No one can predict the future.

3. Don't know how to control themselves
Discipline and Patience. We are impulsive creatures and 90% of our decisions are shaped by our environment (external factors) and not by our own rational thinking. We are irrational beings. Discipline and Patience are a skill that can be developed.

2. Lack of experience, skill and knowledge
Experience are not counted by years (or time), but by the quality of what you know and what you are capable of doing. Knowledge are not counted by the number of information you know, but by the quality of information you hold. And the only way to know the quality of knowledge you possess, are the results it produce.

1. Deductive reasoning - not enough IQ
Not having enough deductive reasoning is the result of becoming like a sheep. When one yells "Witch!", you also join the crowd for a witch hunt. The ability to question what you do and why you do is the biggest Crucial Point. And the inability to do so will lead to a failed trader. The inability to question the information, the inability to the question social norm will lead to a failed trader.

The inability for deductive reasoning to question why you even need a certain IQ. The deductive reasoning of philosophical questions; "can anyone/everyone become a trader?", "Can anyone/everyone become successful?"

Deductive reasoning is the biggest Crucial Point when it comes to:

1. Filtering information and knowledge
2. Creating a strategy/system/plan
3. Finding solutions to a problem

im guessing because my son use this computer FF think it's the same person

1. Too much study about trading.
2. Too much reading of non-sense on FF.
3. Too much time spending on charts.
4. Too much faith in technical analysis.
5. Too much calculation on money management.

that sounds like a recipe for success

That's why most people don't succeed -- successful traders defy the conventional belief.

http://www.easyfreesmileys.com/smile...mileys-296.gif

Good points overall.

Points 3, 4, and 5 can be grouped into a single point 'Know thy self'. Point 2 is the same as 'Know your market'. Traders who don't know themselves, nor their market, are doomed to fail. Point 1 is the weakest. Financial markets are overflowing with above average IQ individuals. The very same individuals that lose on a regular basis. Clearly, IQ is overrated.

Fantastic post

"5 Reasons Why Traders Lose

#0

Everyone is full of "self-importance".

?

This takes a bit of thought.
I'm still thinking...........

Reason people lose in trading IMHO:

#1 Overtrading (trigger fingers) "If I don't buy this now I will miss out!!"

#2 No proven statistical advantage (Took me a long time even with a head start in statistics and math, I fear many are looking for 100% return a week. You will surely blow your account before that happens).

#3 Lets losers run (I think everyone here can relate to this one)

#4 Small capital (trying to make it big with $100)

#5 Normally enters a position with market orders. (Let the market decide where it's going and have a position waiting for the move, I see so many here opening positions before important news release, IMO that is gambling).

Trading against the trend or being impatient with trades that are on with the trend

People trade what they think and not what they see
look at the JPY, it is at an "all time low" and still weakening

another most important reson is undeciplined trader

Trader most have iron decipline also

Undiciplined trader is loser trader

it's more insecurity I would say......people think that if they accept that in fact they do not know how to trade or are not successful at it, then no one here will take them seriously.......so they over state (lie) about their perfomance


either that or 99.9% of traders here are all profitable

In no particular order:

1. Lack of market knowledge
2. Lack of a proven methodology
3. They make decisions based on their P/L instead of market behavior/probabilities
4. Failure to understand statistical validity
5. They use unsustainable MM

And 20 further reasons here.

Traders fail for 1 very simple reason.

They don't know what their doing.

That's really what it all comes down too.