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Top Reasons Why Most Beginner Traders Fail

  • #1
  • First Post: Edited 10:21am Mar 24, 2017 10:11am | Edited 10:21am
I came across an article The Ultimate Math Guide For Traders on Tradeciety website which every serious trader should know by heart.

I see so many posts about being right and wrong about one position, but hardly any on the impact of traders Win Rate VS. Risk Reward ratio correlation to traders success or failure.

If you don't know your systems Win rate expectation (from your past 100 trades taken), you don't know which potential trades meet your risk reward ratio goal that puts you in the green field and which do not and thereby should be passed. Trading is a game of statistical probabilities and not about being right or wrong. Being right on wrong trades, will not make you profitable trader.

Combined with proper position sizing it is single most important thing to understand, if you want to become a profitable trader. You must play small on one position to allow statistical edge of your trading system to work for you. If you make big bets every single trade, you are gambling, not trading. You may get lucky and get rich quickly, but you will more probably go broke.
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  • #2
  • Mar 24, 2017 2:14pm Mar 24, 2017 2:14pm
“The need for certainty is the greatest disease the mind faces.”
― Robert Greene, Mastery
Special one
  • #3
  • Mar 26, 2017 10:00am Mar 26, 2017 10:00am
Quoting Tom81
I came across an article The Ultimate Math Guide For Traders on Tradeciety website which every serious trader should know by heart. I see so many posts about being right and wrong about one position, but hardly any on the impact of traders Win Rate VS. Risk Reward ratio correlation to traders success or failure. If you don't know your systems Win rate expectation (from your past 100 trades taken), you don't know which potential trades meet your risk reward ratio goal that puts...

1. trading without an edge, commonly known as gambling
2. Not understanding the drawdown potential of their method
3. Over leveraging.
I live entirely from the growth of my personal trading account
  • #4
  • Mar 29, 2017 12:39pm Mar 29, 2017 12:39pm
According to me, so many reason the causes of loss in trading and as trade need to learn how to analyze the trend market with high accuracy because no prefect trader that always able analyze the trend as trader need keep discipline with risk management.
  • #5
  • Mar 29, 2017 1:07pm Mar 29, 2017 1:07pm
Quoting TradeGenuis
The need for certainty is the greatest disease the mind faces. ― Robert Greene, Mastery
Great quote to apply to trading ;

"The need for certainty is the greatest disease the trader faces"
LDFX Trading Ltd
  • #6
  • Mar 29, 2017 1:20pm Mar 29, 2017 1:20pm
you most likely need 10.000 hours of screentime to really get this game ...
  • #7
  • Mar 29, 2017 7:38pm Mar 29, 2017 7:38pm
Quoting cvds16
you most likely need 10.000 hours of screentime to really get this game ...
I spend more hours and I'm still learning the game. What can I say, I'm a slow learner
But I have learned one thing, there is no such thing as perfection in financial markets, one can only hope to reach excellence in planning and execution.
  • #8
  • Mar 30, 2017 6:32am Mar 30, 2017 6:32am
Greed, account overloading due to wrong use of Leverage and Lot sizes, failing to apply any form of money management. Those are the first things that come to mind.
  • #9
  • Mar 30, 2017 6:36am Mar 30, 2017 6:36am
Quoting cvds16
you most likely need 10.000 hours of screentime to really get this game ...

I do agree, well maybe not 10 000 but definitely a lot of screen hours.

We human, after thousands of hours can race a formula 1, pilot a jet, save lives by surgery, etc...

Why not pouring out stack of money from the market ?

Of course we can, yet simple but not easy, but we can and we do.
LDFX Trading Ltd
  • #10
  • Apr 14, 2017 8:54am Apr 14, 2017 8:54am
Naturally, all of novice traders start their trading with zero level! In addition, Forex trading is a knowledge based business! So, which new traders try to make real money by live trading before acquiring enough knowledge, they may suffer in their live trading account! That’s very simple! Yes, I also made common mistakes in my demo, but now my long term trading experience helps me to recover my bad trades!
  • #11
  • Apr 14, 2017 5:37pm Apr 14, 2017 5:37pm
Accord my opinion and experience. A lot of people fail because they are trying to be profitable on the Forex market wich is the most chaotic market. It means there is very hard to reach profitability. Every second macro news make move on this market and its not good for technical analysis where most of them are based on historical data.
So If I could say something. As first focus on Indices or commodities like DAX, DOW JONES (for low time frames from M5+) or GOLD, SILVER, SUGAR (for higher time frames as H1+)
Even research is telling us most of the profitable people are on commodities, indicies, stocks.
I wish you all luck
  • #12
  • Apr 14, 2017 7:23pm Apr 14, 2017 7:23pm
Quoting cvds16
you most likely need 10.000 hours of screentime to really get this game ...
and how many hours you got ?
  • #13
  • Apr 16, 2017 9:05am Apr 16, 2017 9:05am
Ik must be around 13000 hours
  • #14
  • Apr 18, 2017 7:27am Apr 18, 2017 7:27am
Quoting cvds16
Ik must be around 13000 hours
Lack of patience can be killer Too doe tour account But of wrong you want to het out as gast as possible
  • #15
  • Apr 18, 2017 7:31am Apr 18, 2017 7:31am
Quoting RondaRousey
{quote} I lose on 88% of my trades. No one on FF has a worst win rate than me yet I am more profitable. In school you are taught 90% is an A, 80% is a B, 70% is a C, 60% is D etc. Most traders thrive to be an A grade or B grade trader and only to find they are losing money. If trading is measured in win rate then I am a H grade trader but a profitable one. They also say you have to work hard in life to get somewhere. In the trading world it would mean overtrading and you end up losing money not making money.
I couldn't agree more. I'm also an F grade student, wrong 60 % of the time and still make money It's hard to comprehend, but it's all just basic math.
  • #16
  • Apr 18, 2017 8:06am Apr 18, 2017 8:06am
90/90/90/90

90% of traders

Lose 90% of their portfolio

in the first 90 days

Because they think they have to be right 90% of the time.

Thank you for this graph. This is something, that needs 100% understanding. It helps calm the mind, because as people when we grow up, we have always learned, to get the highest marks, the fastest runner, the top football player, the fastest skater. But in trading that mind set needs to go right out the window. It takes times and recognition for are mind to change this thought process.
Learn, a forex trader must, unlearn and relearn he will.
  • #17
  • Apr 21, 2017 6:01pm Apr 21, 2017 6:01pm
Three reasons:

One: Not having complete knowledge.
Two: Not having control over emotions.
Three: Not gaining experience through testing/practicing live before going all in.
  • #18
  • Apr 22, 2017 12:29am Apr 22, 2017 12:29am
I'm currently a member of this amazing group of losing traders. I wanna transfer to the group of profitable traders but they say I need to practice more and still needs to learn a lot before I can join them.
  • #19
  • Edited 2:46am Apr 22, 2017 1:05am | Edited 2:46am
Quoting COGSx86
90/90/90/90 90% of traders Lose 90% of their portfolio in the first 90 days Because they think they have to be right 90% of the time. Thank you for this graph. This is something, that needs 100% understanding. It helps calm the mind, because as people when we grow up, we have always learned, to get the highest marks, the fastest runner, the top football player, the fastest skater. But in trading that mind set needs to go right out the window. It takes times and recognition for are mind to change this thought process.
Yes, and the remaining 10 % become the losers of tomorrow.
therefore, the actual formula is;

100/100/x
100% of traders lose 100% of their portfolio in the first x number of days
where x is the number of days that is take for any trader to lose the entire account (for most some only 3 days, for very very few perhaps measured in years)

The 90/90/90 is a lie
it's a commercial catch phrase to entice the losers to open more accounts and / or buy products and services from brokers and scammers.
("Work harder" and 1 day you will be part of the 10 % but you must buy my Super-Galactic-no-loss-forex-system) (;
  • #20
  • Apr 22, 2017 11:48am Apr 22, 2017 11:48am
I've been trading for over two years now and I understand that I don't have enough experience yet, but I'm happy about my results, I think with time things will only get better.
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