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The one reason that trumps all other reasons why traders lose

  • #241
  • Dec 31, 2013 12:17pm Dec 31, 2013 12:17pm
Quoting Silat50
Some say it is improper risk/reward ratio, not letting winners ride, over trading, starting with too small of an account, distractions, not having the right system, not doing enough homework, not keeping a journal, using scared money and all of them are correct. But none of them encompass the whole picture! I've heard every reason possible in my 17 years trading on the Internet. Not one person to my knowledge has ever mentioned the one thing all "Market Wizards" and Pros who are around year after year, the one thing they have and use that 99.7%...
God have mercy on the man
Who doubts what he’s sure of
In trading, there is no bullshit. You either make money or you don't.
  • #242
  • Dec 31, 2013 12:42pm Dec 31, 2013 12:42pm
Quoting TranceTrader
{quote} I think you might of missed the word empirical from my previous post. I like your black and white mentality, dealing in one or the others like rich or poor, right or wrong, have and have not.... and all the rest. I personally found success in the shades of grey. Good luck to you.
I appreciate the goodwill. Luck comes to those who do the right thing at the right time that is do what your system tells you to and sit on your hands when it's giving you the yellow lights.

Empirically I'm seeing progress, clearing the mental cobwebs away and I'd 'soon close the "profit gap" of my system.
Let it turn and find your entry.
  • #243
  • Jan 2, 2014 8:58am Jan 2, 2014 8:58am
Quoting Intrepidpips
{quote} I appreciate the goodwill. Luck comes to those who do the right thing at the right time that is do what your system tells you to and sit on your hands when it's giving you the yellow lights. Empirically I'm seeing progress, clearing the mental cobwebs away and I'd 'soon close the "profit gap" of my system.
There is a very fine line between luck and good analysis One thing Mark Douglas put very well was "anything can happen, when you think you're right, you're probably not right for the reasons you thought so don't get caught up in right or wrong"
  • #244
  • Jan 11, 2014 2:41pm Jan 11, 2014 2:41pm
Quoting FXEZ
Gambler's Ruin: a gambler with finite wealth, playing a fair game (that is, each bet has expected value zero to both sides) will eventually go broke against an opponent with infinite wealth.
+1

And THE SPREAD
  • #245
  • Jan 11, 2014 4:49pm Jan 11, 2014 4:49pm
The one reason that trumps all other reasons why traders lose ?

► Refusing to lose money by not taking the loss when the trade is going wrong.
Getting it right is NOT as important as not getting it wrong.
  • #246
  • Edited 5:46pm Jan 11, 2014 5:01pm | Edited 5:46pm
Many traders fail to understand "Market Condition" as the framework within which all trading takes place. TA only looks at part of the problem, "price". Auction Market Analysis (FX is a dual 2-way auction market) uses "value" as the primary variable. "Value" is the dominant variable in markets. Demand drives value. Change in value reveals demand. Read a market's value path and you can make reasoned and reasonable trading decisions. Price and value are only loosely related. Price traces the activity, but value reveals the meaning of the activity. Time is the arbiter of value..........

Forgot to add that most traders only have an attention span of a 132 character "Text box"......that makes it very difficult for them to learn to think "outside the box".
Markets are not efficient, rather they are effective - Jones
  • #247
  • Jan 11, 2014 5:08pm Jan 11, 2014 5:08pm
Quoting mzvega
... Time is the arbiter of value..........

“The two most powerful warriors are patience and time.”
― Leo Tolstoy
Getting it right is NOT as important as not getting it wrong.
  • #248
  • Feb 11, 2014 6:54pm Feb 11, 2014 6:54pm
Silat. You disappoint me. You can't start a thread like this and not finish it.
Nothing worth having is easy.
  • #249
  • Feb 11, 2014 9:46pm Feb 11, 2014 9:46pm
Quoting Patience
Silat. You disappoint me. You can't start a thread like this and not finish it.
+1
"To hold, you must first open your hand. Let go." - Lao Tzu
  • #250
  • Feb 11, 2014 11:49pm Feb 11, 2014 11:49pm
fear taking a loss

not mathematically breaking down your win loss ratio in pip terms to best understand your strategy
practising coitus interruptus
  • #251
  • Feb 12, 2014 12:21am Feb 12, 2014 12:21am
Plain and simple, it's DISCIPLINE!!!

I know because I don't have any!
Please check out my blog at https://from-zero-to-hero . net
  • #252
  • Feb 12, 2014 1:08am Feb 12, 2014 1:08am
this game doesn't reward hard work..

it rewards sagacious laziness, so grab a beer or a bed or both and watch tv or bullshit for the next few years.

the way to make money here is by having an investor type personality. lazy as hell and bored to the extent of shooting yourself.
  • #253
  • Feb 12, 2014 1:12am Feb 12, 2014 1:12am
There are multiple factors but the most important is discipline.
  • #254
  • Feb 12, 2014 12:26pm Feb 12, 2014 12:26pm
Quoting allisonmagic
this game doesn't reward hard work.. it rewards sagacious laziness, so grab a beer or a bed or both and watch tv or bullshit for the next few years. the way to make money here is by having an investor type personality. lazy as hell and bored to the extent of shooting yourself.
YES
  • #255
  • Mar 19, 2017 2:57am Mar 19, 2017 2:57am
The one takeaway I got from market wizards is most of the traders reduce their trade size when losing and increase it when they are back in the zone. If trading is indeed psychological then performance is dependant on the individuals mind set at any given time. This simple technique of lowering the trade size when you aren't doing well and increasing it when you are does explains long term profitability in what otherwise is a zero sum game. That was the common thread amongst otherwise very different techniques and markets
BTC Return This Year: na
  • #256
  • Mar 19, 2017 5:43am Mar 19, 2017 5:43am
IMHO the vast majority of traders are gambling, whether they realise that or not, sure some of these guys get lucky.

But the overwhelming majority have not identified a trading edge, they frankly may as well be playing roulette.
I live entirely from the growth of my personal trading account
  • #257
  • Mar 19, 2017 2:34pm Mar 19, 2017 2:34pm
Quoting allisonmagic
this game doesn't reward hard work.. it rewards sagacious laziness, so grab a beer or a bed or both and watch tv or bullshit for the next few years. the way to make money here is by having an investor type personality. lazy as hell and bored to the extent of shooting yourself.

I don't agree with this. Investors can afford to be lazy because they are depending on someone else having done the work. Developing your own strat requires hard work and creativity.
I live entirely from the growth of my personal trading account
  • #258
  • Mar 19, 2017 2:36pm Mar 19, 2017 2:36pm
Quoting saqib261
There are multiple factors but the most important is discipline.
The most important factor is finding a strategy that truly has an edge and then executing that strat with sound money management, if discipline is your problem code your rules into an EA and let the computer handle the "discipline"
I live entirely from the growth of my personal trading account
  • #259
  • Mar 19, 2017 3:12pm Mar 19, 2017 3:12pm
trading a losing system
  • #260
  • Aug 30, 2018 7:11am Aug 30, 2018 7:11am
One of the most strong reason of being failure in forex is not having a profitable trading strategy.
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