Thread: The 95% of losers, its true?

The stats are probably perfect. . 95% losers 5% winners.

But here is the thing.

95 percent of traders, in almost any Brokers trade with under usd 1000
Under-capitalized and setting transactions like they've usd 10 000

So, does not matter the amount of traders dropping. . Most likely, speculators earn money.

Of course the tiny accounts trader shed. . They over trade.

It is extremely easy to typical 2-3% each month trading Currency Market...
And that is excellent return any way is look at....but in Currency Market, there is this notion that if a person doesn't earn 20% a month you're a moron... how dumb is that? . Nobody can do that without taking large risk.

J.

Allow me to introduce this in light of Greed to drive little accounts further, limiting accurate profits and Fear to trade a bigger account since you're able to establish the trading rules which will make you successful.

The problem with all the 95% statistic is the fact that it probably includes the whole trade population which is principally composed (participate volume not capital) little speculators/gamblers. These traders are the ones starting out, with small capital looking to make it large. It is not a bad thing. I found out early on commerce a little account that it made little sense (to me ) that I would fret over a float P/L of a few dollars yet on a Friday night I could visit the casino and put a bet for $100 on red or black (fools match in the long run).

In the end I found for myself that my lack of subject early was based on that the outcomes from a fiscal POV had very little effect - Greed saw me upward risk or push profit bounds until I hit a satisfying point, which seldom came and often what could have equated to a solid% development, lacked any punch in fiscal perspective. Losses were the same, I only saw them as I would in the casino case. A 10-20% drawdown didn't feel that way since the amount was easy to reload.

I had been fortunate enough to realise that before blowing any accounts, not that they would have hurt anyway. This brought me to my second problem, since I had no actual trading plan, putting an quantity of money up front, especially once I new that reality, could have left me frozen with dread - basically a fantastic thing early on since I'd find, since now looking at 1% was actually an intimidating thing which made me respect that the capital in a new way.

If the statistic could get rid of the greater caps and the lower caps leaving you with all the mean statistic I think that the% values would be greater. There will still always be bigger players that tend to gamble more, they exist in the casinos so trading would be no different, however I'd be incline to believe that the most significant portion of unsuccessful accounts come in the very bottom end, at least that's been my experience talking to a number of those who have blown lots of accounts.

Jeuro, I believe when you consider it from over an yearly POV, 2-3% is certainly achievable without being overly risky but there are certainly instances when if you allow it too happen, profits can be extreme without raising the risk. I have had my fair share of 10-15% months were market conditions favor you considerably and you also make the market cover up, they do help when the market is flat or you take a few reductions.

RT

Good Article RT..
I agree, while carrying a traditional egy... those 10-15% only happens.

J.

I Enjoy the RT under-script!
A trendy, disciplined trader will take an average system and earn money with it. A nervous, arbitrary trader will have a brilliant system and wreck it.

The issue is with the machine. If the market is shing and is shing from technical, fundamental, or just plain sentiment, how to know you've got a fully tested system in which you are able to have trust? Are you going to examine 2 year and use 1 month, since it has ben changed already?

I would not ever I'm disciplined, neither stressed, maybe arbitrary, since I haven't found my system yet.

Occasionally I'm sure about my trades, I'll enter with a normal or somewhat bigger position. If need correction than I will correct, if I see it is not moving as I have anticipated, than I'm attempting to get out in BE or closer.

After a news release when it turned out to be a huge effect and all candles are 2x-3x longer as other time than do not trade, since my system is a simple system and does not have any case for it? If I input, than I will not be disciplined, since occasionally I will enter occasionally not. Perhaps, when I can't monitor my trade I don't want to input. It happens to input to a commerce, since I see/ I'm am hoping
it will go on that way, however once I'm in I see, it is not shing, as I have anticipated, so I want to get out.

To get eg: it seems it's a clear Short.


Uploaded with http://imageshack.us

I have entered in the trade, and I watched this trend has no more fuel, is not going down, there are stops or no sellers, something happent, it's not exactly what I have anticipated:



Uploaded with http://imageshack.us

Than ofc I'll get out if I can. When I have entered and have to exited it seems I haven't any correct vision what happens there, so I'll leave the currency pair for some time or re-analyze why was that.



Uploaded with http://imageshack.us

I did not enter anymore and I'd right: some thing happent.

I don't have any system, only based on my very last exp and forum post, ebook I'm entering - exiting out of trades. I would not say it's profitable, but can't say it is not.
I'd many demo accounts I have a few Live too. 1 demo cen be cjecked here: https://www.nigeriaforextrading.com/...-software.html

I still think to be in a position to become a long term profitable trader you want to learn exercise minutes 5 year. To reside just from trading you require a capital with minute 20x monthly desired salary, but with 50x I would prefer. A secure, pleasant 10% / month you've got money and free time also. 30% / month needs a lot of labour and risk.

Originally Posted by ;

I Enjoy the RT under-script!
A cool, disciplined trader will require a mean system and earn money with it. A nervous, arbitrary trader is going to have a brilliant system and wreck it.

The problem is using the machine. If the market is changing and is moving from technical, fundamental, or just plain belief, the way to know you have a fully tested system in which you can have trust? Are you going to examine 2 year and use 1 month, since it's ben changed already?


I still think to be in a position to be a long term profitable trader you need to learn exercise minutes...

Hi Matheszabi.
Does the forex market really change? I feel that doesn't change. . .And for certain it doesn't move by investigations.

The Problem is that with the crap, millions wanabe system and millions of worthless indiors, traders lose site of what the Foreign Exchange market really is.

In the forex market, prices always go up or down. . Yesterday, today and forever. It's tick based. Meaning that every tick has their own participants and after those Millions of participants put a orders, and those order are full at whatever price those components were discovered, that millisecond is background... it won't ever repeat itself. ... it is the new set or orders that will transfer the quoted prices. That's why, there's no particular point in a chart that's relevant to anything.

There is just one fundamental in money exchange... that's. . At one point in time, that crap from one country appears appealing and economical to other countries and demand for that currency begin increasing.

How easy is that?

A) Trade with the management of were you find more ticks movements in the previous 24 hours. (5 or 15m chart in your screen. Nothing else thing ). Absolutely no point in understanding what happened before that. Does it really matter is moving in that direction?? NO.

B) Use a hedge commerce as your stop loss. Use a 1:2 risk/reward. . 15/30 minimal 30/60 maximum

c) If you hit TP, close your hedge pending order. Eliminate the TP of their very first commerce Should you hit on the trade. Don't worry.
You have a loss.

D) Wait for another cause as in a). At the time you may select to open a new commerce or close one that is in profit for 15 pips. It's still true that you put a hedge exchange for protection.

Thats it. You will be trading with the trend, caching each of the divergences, indirectly averaging down. Employing all spreads to earn money.
No stress, you can exchange as much or little you desire.

How many times it is possible to be wrong trading like this??? 50%?? It's all but impossible to be wrong more then . . .and you still earn money.

J.

Originally Posted by ;

From the very long run 5 decades , 99% of retail traders lose, don't even bother to start trading in case you still haven't spent any real money, cuz you'll lose it all.

Being too optimistic. 100% have dropped so far, there is not a single retail trader that has made a consistent earnings from trading. You may earn money but its different than blackjack.

Anyone claiming to succeed show us your earnings of the previous five years out of forex not 6 months of wins. I have made 100% in a year lol.

Originally Posted by ;

I still think to be able to become a long-term profitable trader you want to understand exercise min 5 year. To live just from trading you need a capital with min 20x monthly wanted salary, but with 50x I'd prefer. A safe, nice 10 month you have cash and free time. 30% / month needs a lot of labour and risk.

I think it differs for everybody but the point I want to create is that it needs to be a sum which in fact causes you to stand up and take notice of your transactions, to control them and input on your plan.

My signiture (which I obtained from a Peter Crown post or a Joel Rensink article ) relies on knowing your system inside and out.

Recently I had the delight of watching a seminar based on GAP trading (Forex market open GAP mostly ). After years of testing on the EUR, the sponsor provided 3 scenarios. In each the entrance was always the open candle to its market, the target was always the finish of the GAP nevertheless the SL was analyzed over the period and 3 options where given. They had been

SL in 50% of the pip space of this gap. So far example the gap equated to 50 pips, the entrance was that the open along with the SL has been 25 pips below the open

SL in the distance. Same example although the SL is now 50 pips from trade open

SL in 2x the gap space. Instance although the SL is now 100 pips.

Breaking each down he found the normal order for profit was roughly 77% to the 3rd, 62 percent to the 2nd and a lowly 44% to the past.

Now what is interesting is that though the first option (1/2 SL) has been the least succesful, it had the increased expectancy and by far. SO that the best option going forward was that the transaction that was likely to win less than 50% of the time but when it did you have a yield of 2R.

Now each situation was profitable over the course of 3 years, doesn't guarentee success later on but as a measurement of previous achievement you'd be best off with alternative B and then C.

Now had I only place the % there, 95% of individuals would have gone for alternative C. WHY, since it wins more. That's the mindset of the majority which leads me . Just because something wins doesn't mean that you may up your risk. In the C option, you still don't understand when you will find a string of winners and loosers but so many traders choose a high hit % and trade it . They don't understand the bigger picture.

Another thing most unsuccessful traders do is simply take the % as the be all and end all, rarely do they reevaluate their data, and that is usually because of its absence of record keeping and having a journal. Like a good instrument your system need calibration from time to time. You have to return to the results and input the new data. For all you know that 2x SL now has a win % of 64 percent and really carries a negative expectation. Couple that with all the high risk and you are bound to blow up.

That's the problem with trading systems and also the more complied they get, the harder they are to follow to a T, and the not as likely you are to calibrate themtherefore a complete robust system with a solid expectancy could be passed to a amateur and they will likely fail with it. An ordinary system may be handed to a skilled traders and they'd go about tweak it for the best parameters to judge the higher expectancy and then along the way that they will also reevaluate the system to ensure the way they are trading it is still the optimal way in terms of probability and outcome expectancy.

There's nothing wrong with investing in a $1000 account if $300 per annum is a suitable result but 99 times out of 100, that account will be dust because you attempt to push the bounds and if you do not have a robust system or egy then you might aswell close the account before handing your broker which cash.

RT

Really there aren't any exact percent for this, nevertheless it is true that most traders are losing money on the market, the issue is that those little band of individuals are much smart individuals who have strict self-discipline.

Originally Posted by ;

I am newbie of course. I knew FX and nigeriaforextrading just 4 months ago. I read lots of posts here and I have two very simple questions.
Everywhere, we see this and create it like a alert: 95% traders go with the win each year, just 5% survive. These words appearred in 70-80 decades, now all of the world we've indiors, patterns, autochartist, therefore this ratio is authentic untill now? When it's right, from where we have such many people take part in FX everyday?
The second question is that do you know what legends of this FX today? ( and the sum...

I think it's fake information. Please do not panic when you have heard this kind of news. I have discovered in a statistics that 30% trade are getting profit from Currency Market.
Could possibly be 95% newcomer are failure.

I have been trackingnigeriaforextradingtrade explorer and every trader who had been doing exceptionally well a year past was murdered,murdered and waxed.

None has shown longevity.