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Why most 'traders' fail 12 replies

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Average system + great discipline =great results? 44 replies

Why Traders Lose Their Discipline 2 replies

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Most traders fail because of no discipline!

Quoting HFABamaFan
So, as of today, I have deleted my App off of my phone...
Yeah, I can relate. I have a nice app on my phone, and it can do about 90% of what I can do on my desktop. But for some reason, it just doesn't feel.... I don't know, I guess "safe" is the word. I'm never 100% comfortable dealing with a trade on the phone, and almost NEVER actually open a trade that way. I basically use it for monitoring an already-open trade, but even that doesn't feel right when things start moving fast.
I find beginners letting losers run and closing out profitable trades early.
trading GoldH4, EuroH1, and PoundH1 Futures and FX skype:fxtraderpro1
Quoting carguychase
I find beginners letting losers run and closing out profitable trades early.
You are completely right, I am still getting my feet in the door when it comes to FOREX trading, and I tend to feel the whiplash that can often occur and exit a trade, although profitably, but not maximizing my R/R.

Thanks
Quoting Fedricks
I find it very strange when people talk about discipline, I dont you can be discipline till you dont have sufficient education and experience, if we arent having that enough then we will never be able to stay in line or disciplined. So, if anything then focus on education and then it will be much easier to be discipline, it cant be other way round, as Forex is simply too tempting to be able to handle alone on disciplinary grounds.
Agree. A discipline is in an education. Education is nothing without discipline. But we can not keep the discipline in trading without knowledge about what we should keep. In other words if our strategy is unprofitable, the discipline will not be able to help. We will disciplined loss money.
We all know that over 95% forex trader losses their account because of no discipline. They looses because they don’t follow any trading system & rules. A good trading plan is very essential for a forex trader specially for the newbie who want to be a successful trader. Discipline is an integral part of becoming a successful forex trader. So every trader should follow a simple trading strategy in a discipline way.
Discipline will come when you have tested your trading edge to death, under all market conditions and you know exactly when this edge performs best.
This stage requires a lot of patience and real statistics, not just simply saying "my win rate is over 60%, So I should have more winners than losers".

Trading is about preserving capital as much as it is about gaining capital. Accepting a small loss is vital for survival. I have known many pros call this the cost of trading. You must always accept the risk first before you place a trade.

If you dont know what an edge is, or have not yet discovered one, then trading for you is merely gambling.
How can you be a disciplined gambler ?
The Only Limit, is the One that you Set Yourself - Felix Baumgartner
Quoting Shabs19
Discipline will come when you have tested your trading edge to death, under all market conditions and you know exactly when this edge performs best. This stage requires a lot of patience and real statistics, not just simply saying "my win rate is over 60%, So I should have more winners than losers". Trading is about preserving capital as much as it is about gaining capital. Accepting a small loss is vital for survival. I have known many pros call this the cost of trading. You must always accept the risk first before you place a trade. If you dont...
all your words are correct, but anyone can suggest any person- as a symbol could success and become a millionaire for a long term period in fx market?
Quoting HFABamaFan
Alright, here it goes. Discipline is the only reason that I fail in trading. I decided to start trading again to earn a little side income for my Monday-Friday desk job. I have two Fridays off a month, which makes it much easier (sometimes). For some reason, part of me wants to be in the market at all times. I started on a small account, (400 dollars), while depositing 250 each paycheck, and part of my 25th and 26th paychecks (I am not there yet). I learned to trade a while ago, when I was debating whether or not my chosen profession was for me,...
Great to hear that you manage to find your time & method! happy trading to you
Let Market Tell You
Quoting Fedricks
I find it very strange when people talk about discipline, I dont you can be discipline till you dont have sufficient education and experience, if we arent having that enough then we will never be able to stay in line or disciplined. So, if anything then focus on education and then it will be much easier to be discipline, it cant be other way round, as Forex is simply too tempting to be able to handle alone on disciplinary grounds.
Without discipline and consistency this is recipe of desastar...
 
Trade fearless not careless...
Quoting carguychase
I find beginners letting losers run and closing out profitable trades early.
Due to lack of confidence and belief on system...
Trade fearless not careless...
Quoting Mr Breakout
{quote}. Sad but true, 90% of traders, especially new comers, will never understand the importance of this simple mathematical fact. Alright, enough said.
but there is an other fact, so its not sad to have this many losers. when there would not be this 90 % of the traders losing money, you cant get any win in the forex market. there needs many losers to get some big winners or many small winners. if you by theory can teach all and all would win by this strategy/moneymanagement, then simple market change and again there are losers because of your rules dont work any more, just so extrem simple is a zero game market.

thats the game in a zero win/sum market. many dont see it, or dont understand it. thatswhy many traders have to fail that some can win big or many smaller win. its pure math and a rule that will never change.
  • Post #832
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  • Edited 11:20am Feb 11, 2017 10:54am | Edited 11:20am
Quoting Mr Breakout
{quote} It is mathematically impossible to make money playing a game that constantly takes money upfront on each trade/bet (spread, commissions, slippage...), unless you can find a system that beats these transaction costs, simple as that.
If Spread, Commissions & Slippage are an issue then find a better reputable Broker. It should be a part of your strategy to include trading costs.
Trading during high volatility can be avoided unless you are a news trader, or choose pairs with low spreads if that is an issue for you.
Slippage will be dependent on how good your broker is.

Understand, any business has operating costs, these come out of your profits ultimately. The brokers provide a service for you, they will charge as do banks.
If your trading edge only produces 50/50 at best and 1:1 RR then of course you will drain your account. Why would you want to trade with those returns ?
It is a negative sum game if you have no edge - simple.

90% traders lose because they have no edge to start with, yes they can win randomly but not consistently. Hold on to losing trades, take small wins, overtrade, revenge trade, act on impulse, Buy at resistance, sell at support, so on & on. They choose the market to discipline them.
The Only Limit, is the One that you Set Yourself - Felix Baumgartner
Quoting Shabs19
{quote} If Spread, Commissions & Slippage are an issue then find a better reputable Broker.
That was not my point Shabs19, spread/commissions/slippage will ALWAYS exist, no matter what broker you select.

All I am saying is that these costs turn trading into a game with a negative mathematical expectancy.

In other words if your trading system has no edge to begin with, you will end up giving ALL your money to the broker, slowly but surely, trade after trade after trade. And the more you trade the more you lose, just like in a casino.

That's why most traders lose, because the game is mathematically "rigged" from the beginning. If you make random calls with a 2 pip spread per trade, after 100 trades you will lose 200 pips, on average. After 500 trades you are down 1,000 pips. Simple as that.

It's not the ONLY reason but that's the main reason. And of course your broker will never tell you that. No he will tell you that traders lose because they have no discipline, not enough capital, they don't use stops, blah blah blah...
Quoting Mr Breakout
{quote} In other words if your trading system has no edge to begin with, you will end up giving ALL your money to the broker, slowly but surely, trade after trade after trade. And the more you trade the more you lose, just like in a casino. ..
I have stated the same point in my post:

Quoting Shabs19
{quote} It is a negative sum game if you have no edge - simple.
So we do agree
The Only Limit, is the One that you Set Yourself - Felix Baumgartner
Quoting Shabs19
{quote} It is a negative sum game if you have no edge - simple. 90% traders lose because they have no edge to start with, yes they can win randomly but not consistently. Hold on to losing trades, take small wins, overtrade, revenge trade, act on impulse, Buy at resistance, sell at support, so on & on. They choose the market to discipline them.
I like what you wrote. 90% of traders lose because they focus on the wrong things. Their trading philosophies are wrong. They try to rely on luck to get them out of a black whole instead of their edge, if they have one. Yes it's a negative sum game if you take into account slippage, spreads and transaction costs for retail investors. The object of trading is to make a profit month after month, year after year. How you do it does not matter as long as it has an edge and you do it consistently. You do it consistently by having discipline. Keep what works and discard what doesn't. Before you place a trade, a trader must first figure out what edge does he/she have not what the TP or SL is. If you don't have an edge then why are you trading? Remember every mistake you make in the market you will be punished financially.
You came here for the truth and let me unveil it for you
Quoting HFABamaFan
{quote} Thank you very much for your feedback. Do you have any books I can read to help develop a well rounded trading system. Again, thank you for your feedback. Hunter
Unfortunately not, i don't read much of books, as i have learned from Babypips while YouTube to me is an excellent source to learn which i usually use. I hope it helps..... Thanks.
Quoting HFABamaFan
Do you have any books I can read to help develop a well rounded trading system.
Try: "Building Reliable Trading Systems: Tradable Strategies That Perform As They Backtest and Meet Your Risk-Reward Goals", by Keith Fitschen.
i am truly agree with you . every successful trader has unique story of following trading discipline like i have seen many successful trader don't watch mt4 chart all the time rather the analyise the market fundamentals and also always try to improvise their technical trading strategy and most powerful discipline in forex market is following the money management, this is the only key to every successful trader .
Quoting Mr Breakout
{quote} As long as we have this fat-tail distribution we (the traders) will be able to extract consistent profits from the market (using simple trend-following techniques for example), don't worry. {quote} More discipline equals less big, devastating losing trades but it's still not a guarantee that you will end up making money in the long run. {quote} Discipline without a trading edge is worthless, no matter how disciplined the trader is. Most brokers tell us that traders lose because they have no discipline. TOTAL BULLSHIT! Traders lose mainly...
You decrease your transaction costs when you have an Islamic account.
As matter of the fact,you only pay the spread.
I don't know the rules the brokers apply for a client to swap-free account,but i have it.
Losses and winners will be what you expect to lose/win because there's no costs.
The broker only earns from you the spread,the more you trade the better for them.
Work smarter,not harder
Quoting RondaRousey
{quote} I like what you wrote. 90% of traders lose because they focus on the wrong things. Their trading philosophies are wrong. They try to rely on luck to get them out of a black whole instead of their edge, if they have one. Yes it's a negative sum game if you take into account slippage, spreads and transaction costs for retail investors. The object of trading is to make a profit month after month, year after year. How you do it does not matter as long as it has an edge and you do it consistently. You do it consistently by having discipline....
The cause of the problem is I think majority of traders come to this business or market having the wrong mindset, we are introduced in FOREX with the idea of there are lots of money to make in it, its a 4 trillion a day market, we can possibly have an unlimited profits if we joined the market, in short marketers and brokers make us believe that we can make money in trading with less effort but the truth is trading is one of the hardest if not the hardest endeavor that you will ever make in your whole life, some may or may not agree but its the truth statistic speak for itself, its like jumping to a pool without knowing that there are sharks and piranhas underneath, so in conclusion right knowledge and education at the very start in trading is an important aspect how we grow as a trader, it is important for newbies to just don't listen or believe what other people/websites/marketers say, make your own study and research about the market so that you are well informed and will have the much needed education before you go to war.
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