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reasons why traders lose

  • #81
  • Nov 9, 2015 5:29am Nov 9, 2015 5:29am
when I sell, the price is up
when I buy, the price drop
market is designed to fool people, that's why we lose.
paid for waiting , a zero sum game, keep dancing till the end
  • #82
  • Nov 9, 2015 5:51am Nov 9, 2015 5:51am
Quoting moveonbaby
market is designed to fool people

I'm not sure the forex (interbank) market, per se, is "designed" at all: I think it's just a reflection of what's transacted.

But the retail traders' "market" that exists around it, offering products and services, is certainly designed in large part to fool people. I think people fail not so much because of that, in itself, as because they're naive/gullible/ill-informed enough to fall victim to it, and lack both the education and adequate judgement/experience to be able to form decent decisions about "by whom to be guided". People look for short-cuts, in other words.
  • #83
  • Nov 9, 2015 5:57am Nov 9, 2015 5:57am
Ignorance and lack of knowledge. Not willing to acknowledge this lack. 'I don't know' seems the hardest reality to be accepted.
  • #84
  • Nov 10, 2015 2:30am Nov 10, 2015 2:30am
And it is very simple: excitement and greed. Sooner or later you will lose a large sum, and then lose your head and begin to push all the buttons with a huge trading volume to recover losses. The first rule of trading: the stop should always be. There can not be done any transaction without stop. I know that once I decide that the entry is 100% cool I will enter the market without stop, the same day I will remain without depo.
  • #85
  • Nov 12, 2015 12:20am Nov 12, 2015 12:20am
Quoting Arsene
And it is very simple: excitement and greed. Sooner or later you will lose a large sum, and then lose your head and begin to push all the buttons with a huge trading volume to recover losses. The first rule of trading: the stop should always be. There can not be done any transaction without stop. I know that once I decide that the entry is 100% cool I will enter the market without stop, the same day I will remain without depo.
Sad but true. Happened to me so many times..
Now I understand that money management is the key in any trading - stocks, bonds, options, forex. But as Forex is much more volatile than other markets SL is especially important for newbie trader.
  • #86
  • Nov 16, 2015 7:31pm Nov 16, 2015 7:31pm
Quoting Arsene
And it is very simple: excitement and greed. Sooner or later you will lose a large sum, and then lose your head and begin to push all the buttons with a huge trading volume to recover losses. The first rule of trading: the stop should always be. There can not be done any transaction without stop. I know that once I decide that the entry is 100% cool I will enter the market without stop, the same day I will remain without depo.
Excitement and and greed after my profits and lack of emotion control after my losses. Weeks ago I made this kind of mistake, entered a revenge order in order to recover some losses without any proper analysis, and at the end, I got MC on my account...
  • #87
  • Nov 16, 2015 7:40pm Nov 16, 2015 7:40pm
Quoting Arsene
And it is very simple: excitement and greed. Sooner or later you will lose a large sum, and then lose your head and begin to push all the buttons with a huge trading volume to recover losses. The first rule of trading: the stop should always be. There can not be done any transaction without stop. I know that once I decide that the entry is 100% cool I will enter the market without stop, the same day I will remain without depo.
"The first rule of trading: the stop should always be"

Really ?
Whose rule is that ?
  • #88
  • Edited 10:06pm Nov 16, 2015 9:42pm | Edited 10:06pm
Quoting Xela
{quote} I'm not sure the forex (interbank) market, per se, is "designed" at all: I think it's just a reflection of what's transacted. But the retail traders' "market" that exists around it, offering products and services, is certainly designed in large part to fool people. I think people fail not so much because of that, in itself, as because they're naive/gullible/ill-informed enough to fall victim to it, and lack both the education and adequate judgement/experience to be able to form decent decisions about "by whom to be guided". People look for...
Let's look at the big picture.

If you are not a losing trader, you are not doing your job.
To be of benefit to a society in a free market economy traders MUST LOSE.
90 % of traders (the losers) are doing their job to help the economy -- they facilitate price discovery, bear the risk and take the loss that otherwise would have been assumed by the producer, and provide liquidity for the benefit of the producers: the REAL CONTRIBUTORS TO SOCIETY.
They are the "tools" of the financial world; without this grease on its many wheels the free market would grind to a halt.
It's obvious that at any given time you will have a percentage of losers and winners. Anyone can claim or show a record of a winning account as proof. But what does it really mean? On further investigation it's clear these stats are meaningless and cannot be trusted. There is no doubt that a few players can make a few pips ... for a while. Unfortunately, being profitable during any given quarter does not mean it's sustainable for any particular individual.What most fail to understand is that from period to period you are not looking at the same losers and the same winners. The winners of today become the losers of tomorrow and ever fewer losers may become winners to replace the defunct winners that have joined the rank of the losers. A requirement is that new traders have to constantly join the game. They are the fuel of the dwindling spiral. It will continue to spin downward as long as new players come in-- incidentally this explains why the not so ethical but ever so commercial calls to "place bets at the casino" - "the water is fine, come on for a swim" - is always loud and clear.
Who does really profit long term?; it's the "house" - brokers and anyone "selling shovels to the gold diggers" - in the long term ALL the money goes to them.
Long term, spot retail forex trading is simply a wealth redistribution system temporarily to some players but eventually it all goes to the "casino".
  • #89
  • Nov 17, 2015 7:09pm Nov 17, 2015 7:09pm
Quoting AndikaAnjani
{quote} Excitement and and greed after my profits and lack of emotion control after my losses. Weeks ago I made this kind of mistake, entered a revenge order in order to recover some losses without any proper analysis, and at the end, I got MC on my account...
Excitement and greed are always happen to newbies, especially when beginner's luck happens. They'll feel overconfident and do another trader without any preparations. And at the end, they just blew their account..
  • #90
  • Nov 18, 2015 1:04am Nov 18, 2015 1:04am
I lose when don't have the patience or the greed overpowers me
  • #91
  • Nov 21, 2015 9:23pm Nov 21, 2015 9:23pm
Quoting moveonbaby
when I sell, the price is up when I buy, the price drop market is designed to fool people, that's why we lose.
You must be lacking some thing in your trading plan. This only happens when you miss a slight information, upon eliminating this lack of knowledge you will start making money from trading.
  • #92
  • Nov 22, 2015 6:57am Nov 22, 2015 6:57am
Nice post, I think its due to a number of things posted in the first post.

The start up cost; the brokers market trading as if you can trade with just a $500/1000. We all know this is not the case at all. But they target the masses who have this idea of trading that they can double their money in less than a month.

The other aspects I believe are the lack of theory, lack of confidence, experience which are cousins of the 'hard work, desire, learning much as you can. reading, screen time'... A lot of traders feel the need to rush because they want to make money ASAP. The thought of learning, spending close to $20k - $25k start up costs then not even expecting an income for the first year or so, is very hard mentally. The bigger accounts merely acts as a defence wall, if you lose 20% on a $1000, you're going to be frightened to take the trigger of a trade, where as loosing 20% of $20,000 you are still in the game.
  • #93
  • Nov 22, 2015 11:46pm Nov 22, 2015 11:46pm
Lack of knowledge is the main factor, major part of all traders come to Forex with a hope to win a million this very minute...no wonder that brokers earn on these "traders".
  • #94
  • Nov 23, 2015 5:49pm Nov 23, 2015 5:49pm
You don't need to have a large startup capital,
you can start with very little if you have a profitable method and the right approach to trading
Bulls are stupid Animals!especially when Im short!
  • #95
  • Nov 23, 2015 7:50pm Nov 23, 2015 7:50pm
Quoting roughtrader
You don't need to have a large startup capital, you can start with very little if you have a profitable method and the right approach to trading
Yeah, agree with this.
As long as you hold a profitable trading system, you can maximize even the smallest capital in your account...
  • #96
  • Nov 25, 2015 7:02pm Nov 25, 2015 7:02pm
Here's how I see it.
You play a game where you have 90% chances to lose. You have 2 choices:
1. Follow the same rules everyone else is following and accept the 90% probability of being part of the losers group.
2. Try and break or bend those rules and maybe you'll reverse that percentage in your favor.
Using the RobotFX EAs for a while https://www.robotfx.org/
  • #97
  • Nov 25, 2015 7:11pm Nov 25, 2015 7:11pm
Quoting moveonbaby
when I sell, the price is up when I buy, the price drop market is designed to fool people, that's why we lose.
Why is that a problem?
Forget about the SL, learn to hedge and basket trade and you'll never lose again.
Using the RobotFX EAs for a while https://www.robotfx.org/
  • #98
  • Nov 29, 2015 7:19pm Nov 29, 2015 7:19pm
Quoting wattaman
{quote} Why is that a problem? Forget about the SL, learn to hedge and basket trade and you'll never lose again.
That's parts of risk management, things that every trader should know in order to minimize the risk of forex trading so traders won't suffer lots of losses...
  • #99
  • Nov 30, 2015 6:31pm Nov 30, 2015 6:31pm
Quoting SamsuSamsul
{quote} That's parts of risk management, things that every trader should know in order to minimize the risk of forex trading so traders won't suffer lots of losses...
imo this kind of 'risk management' is useful if you don't want to lose all your money at once, but in small amounts
Using the RobotFX EAs for a while https://www.robotfx.org/
  • #100
  • Nov 30, 2015 7:38pm Nov 30, 2015 7:38pm
Quoting wattaman
{quote} imo this kind of 'risk management' is useful if you don't want to lose all your money at once, but in small amounts
True. If you think that loss is unavoidable, just make sure you know how to minimize it so won't suffer much losses...
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