Thread: Why do 99% of the people who wants to be traders fail?

91380An advantage is simply expectancy - that the anticipation you will come out ahead over the years even the supply of losses and wins may in reality be arbitrary. A casino has favorable expectancy but cannot be certain those profits will come. In the markets that this can be based on analysis of data and of course therefore there are no guarantees as a market does not have any permanant mean.

91380Please allow me to clarify, I#8217;m a new trader, I did blow out, my account, Within my second I#8217;m averaging about 10% return per week. At First I attempted to Understand the chart reading and you make move on this but actually It#8217;s difficult to figure that out, I don#8217;t think you can#8217;t predict the future by looking at the past, I start just trading by looking at the news, Should you read directly you could have a good Thought were that rate goes, Don#8217;t remain there for quite a while but just enough to earn some pip, what ever you are delighted with, I I#8217;m joyful getting between 5 to 10, I get out, So weekly,y average is 10%. When I had been searching and attempting to browse the charts, I had been losing allot and might remain with this open position for times to break even, or becoming out using a lost. I could be wrong but so far so good.

91380i believe most traders fail due to some'unknown' force that keeps it that way.

I mean if trading was simple, where everyboyd is profiting and making money, nobody will do anything successful in the actual world. The world economy would fall.

Perhaps it is the Currency Market gods that keep the winning percent low so that the remainder of us would go out there and WORK.

91380

Originally Posted by ;

On my second up to now I am averaging about 10% return per week. [/size]

WOW! With compoundidng you will double your account every 8 weeks and achieve a 6497% return per annum. Beginning with a micro account you will be worth over 4.25 million in just two years surpassing any other traders results ever! Dont you think thats a little odd to get a newbie who cant see a chart? It is unlikely that you can translate the news so you are dependant on the perspectives of analysts to call a management for you and they're notoriously innacurate. We are just six weeks to the year and if you last another six without at least an additional blown account I will be astounded - do some research on risk management and odds if you want to prevent my prediction comming true - its all here on FF

91380

Originally Posted by ;

WOW! With compoundidng you will double check your account and achieve a 6497% return per annum. Starting with a 1k account you will be worth over 4.25 million in two years surpassing any other traders outcomes ! Dont you think thats a bit strange for a newbie who cant read a chart? It's improbable that you can translate the news so you are dependant on the views of analysts to call a management for you and they're notoriously innacurate.

While it's probably a bit too optimistic, you do not have to call a management at all. Simply put a buy-sell stop pair a few pips from the current location (ATR can help with that, look at nonstop news ATR swings and compare). Figured that out my 2nd week trading so I could see someone new doing this. Only problem will be translating this to a real account... slippage and high spreads make news trading very difficult, and though you are able to exchange the rebound... I'm not sure it is well worth following each little news story just to hope for a dollar. Appears to be a heart attack waiting to happen.

91380

Originally Posted by ;

.... Technical trading on it's own can't work long term. ....

Warren, I have no doubt that you're effective, and I congratulate you.

But, there are individuals who claim to be consistently profitable, using purely technical methods.

Once a trader has found his own winning strategy, I guess it stands to reason that he no longer continues to investigate additional approaches, and hence runs the risk if creating a kind of tunnel vision. I feel it's not necessarily correct to assume that, simply because the strategy of somebody else is not like one's own way, that it's doomed to fail. As Jack Schwager says in The New Market Wizards (assuming it's applicable to forex also) you will find a million ways to earn money in the markets; the irony is that they're all rather difficult to find.

Because of why so many traders fail, there's a lot of randomness in price movement, and my experience is that it may take a few months of testing to find a pattern that delivers an edge. There are a few that have claimed to attained it I feel that it's possible, although I'm not there yet myself. Many newcomers have been seduced into believing that forex trading aren't ready when they discover that it's not the situation, to spend the hard yards, and is money. The dediion needed can place tremendous strain on one's career, family and marriage priorities. It takes some resilience to continue persevering, following a few fruing months (or possibly even years) of bad, umpromising or inconclusive results. I expect that these factors help all contribute to the high dropout rate.

I also feel that aspiring intraday traders underestimate the impact of prices across a large number of transactions (spread may be lt; 5 percent of a move, but casinos earn billions from a 1 percent advantage ), and there is also the chance of quit hunting and broker cheating.

I think that the MM and plogy aspects definitely take their toll, but are overrated. Of course if a newcomer sizes positions recklessly and/or makes entrances or exits based on emotion or hunches, he'll ultimately fail. If he doesn't have a method that is capable of beating the 19, but the exact same goes.

In similar vein, so I do not feel that maintaining a positive attitude by itself is sufficient. Because I generate as much positive energy as I can when I buy a lottery ticket, it doesn't alter the chances, and I don't see trading ought to be different. But of course a negative attitude is self-defeating.

Last year I exchanged a live account for almost 4 months and I lost around 9 percent. I could honestly say that I sized all places at risk, maintained a enough attitude, and maintained to my plan with subject. But my plan did not time the entrances and exits accurately enough, and consequently did not deliver an edge. As a result, I lost money, and closed the account.

David

91380

Originally Posted by ;

Trading is hard because being the understanding within this discipline so unorganized lots of completely false myths flourish at the rate of light and shortly become the established fact for the huge majority of wannabe traders who, being made of winners, are particularly great at getting mixed up on what's good and what's crap. For a very clear illustration of what I'm talking about here read this article that I consider to be among the post you may find on FF.
. People today fail in trading because most of the time rather than studying, learning and practicing the markets they waste all of their energies studying on forums such as FF that the complainings and the laments of winners that yell all of the time that there is no way at all to become profitable with forex, which whoever says he is earning money is a liar and an impostor and if someone demones to become profitable showing true statements losers say it was only luck (so just really temporary success which will surely really soon be reverted to enormous losses), and waste their time composing replies to that winners stuff. So I think it's better I stop here.

Nice article, Ubeee, I particularly agree with the components I have selected above. I spend time replying to forum articles myself! And many thanks for the link to Dr Steenbarger's post - it makes a lot of sense for me (particularly The most important cause of trading collapse is a lack of an objective advantage in the marketplace, trading random patterns which have never been analyzed out for achievement .)

Best wishes,
David

91380

Originally Posted by ;

Nice article, UbeeeI particularly agree with the components I have selected above. I probably spend time responding to forum articles myself!

David, your articles are typically quite valuable. I understand how much time needed to produce the type of accurate posts that you write and that is the reason why I normally read them carefully.
The sad part of all this is that in life, assuming you just work hard and that you're really committed, you are able to do almost everything you want but you: have the time to just flow a little bit slower. Time is really. It's mandatory to use it at the manner we could.

91380

Originally Posted by ;

WOW! With compoundidng you'll double your account every 8 months and reach a 6497% return per annum. Beginning with a 1k account you'll be worth over 4.25 million in just two years exceeding any other traders results! Can you think thats a little odd for a newbie who cant read a chart? It is improbable you could translate the news so you are dependant on analysts' views to call a direction for you and they're notoriously innacurate. We're just six months into the year and should you last another six without at least one more blown account I'll be astounded - do some research on risk management and odds if you want to prevent my forecast comming accurate - its here on FF

Well so far it's been working for me yet another 10 percent this week, I am glad you did all of that mathematics for me, but I really do believe 10% will return to a closer window, I only Open one trade in the time, when I am at a optimistic, I get out, with news, 90 percent of the time you will notice a drop or a win of a minimum of 10pip, now depending upon your leverage you can certainly do 10% a week. I really do believe chart may be read, however I am sure it takes allot of expertise and education to learn this. Although you can, good for you, however please educate me, I get confused with this method, and actually I'm guessing when a determination is made by a. So far News work for me

91380

Originally Posted by ;

I know I'm going to be hated for what I'm going to write, but I am planning to do it anyway because I think it could be enlightening (to few).

GENERIC PART
Most of the men and women who wishes to be traders fail because most of the people of the world fail anyhow whatever they try to achieve. Most of the folks have fat wives, awful kids, small homes, minimal eduion, zero self-esteem, boring (or even unbearable) tasks and accept to succumb all the time to their arrogant bosses on the job and hysteric relatives in the home. I know it is extremely sad, but it is a fact: because they are losers, most of the people of the world fail.
Now, if you do not believe what I am saying, be truthful, just head out and walk a little bit in the roads around your home: how many Claudia Schiffer or Albert Einstein do they reside in your area?
We are a result of genetic selection. Genetic selection most of the time produces elements that will never do anything specific and will never win anything in almost any circumstance that is even only a little bit challenging. Only very hereditary choice produces first-rate components, maybe only 1 percent of the time, that in itself is the answer to 99 percent of the men and women who wishes to be traders fails.

TRADING SPECIFIC PART (not only forex)Trading appears simple. This is. You see all that money going up and down all day (and with forex too night) and it appears real, concrete, concrete, it seems like a lake so full of fishes that you can see them jumping and swimming and calling you to go there and easily ch them. You discover they are piraña.
. Losers are winners and at the deep of themselves they know they are losers. Knowing this they try all of their very best to avoid doing things that are hard and concentrate themselves only on things that are simple. The problem here is that trading appears simple, so losers think trading is just the thing for them to do. Instead of working hard to get a better job, a more complete eduion, a more beautiful wife, more self-esteem and so on (these are hard things to do) they just want to exchange: it's more easy! Therefore investing in itself naturally brings more loosers than gifted men and women.
. Losers feels more urgency to begin gambling (read: to begin making something that is easy) just after they have just got a terrible stroke in their lifetime, like after having been terminated on the job, or their wife left themor never contracted a big debt with a creditor, or (for youngers) having neglected at school or college, and so on. They begin under strong pressure, at the worst case scenario and only after having found they are.
. Trading in itself is not any tougher than a lot of different tasks of this world, but there aren't any official, widely esteemed and recognized schools that educate trading. Vast majority of the time you will only find gurus, suspicious mentors traders who promise to reveal you trading's concealed secrets that will enrich you beyond your wildest fantasy in a few weeks. There are of course good and honest mentors, but you have to locate them, and they are rare. Actually being the world of traders populated by losers a lot of scammers exist because they know it's easy to fool losers.
. Trading is hard as anyone gets really very good at it only infrequently feels the urgency to teach other men and women his knowledge. They teachs into that is it and some of friends or their relatives. Even once you find mentors you will soon discover that while they are good as trader, and it's true that they create a living from trading, it is also true they're not any winner of trading. They are only honest and good average traders with skill in teaching. You will never secure personal mentorship from the actual winners unless you're already quite close to them.
. Trading is tough because being the understanding in this field so unorganized lots of completely false myths thrive in the speed of light and shortly become the recognized fact for the vast majority of wannabe traders who, being manufactured of losers, are particularly good at getting mixed up on what is good and what is crap. On FF you may ever find To get a very clear illustration of what I am discussing here read this article that I think to be one of the most useful and intelligent post.
. People fail at trading because most of the time rather than studying, learning and practicing the markets that they squander all of their energies reading on forums like FF that the complainings and the laments of winners that yell all the time that there is no way whatsoever to be profitable with forex, that whomever says he is earning money is a liar and an impostor and when somebody demones to be profitable showing true statements losers say it was only luck (so only very temporary success that will definitely very soon be reverted to huge losses), and waste their time writing answers to this losers stuff. Well, I think it's better I stop here.

This is maybe a better post than the one which you supplied a hyperlink to, which has been great to start with. This should be a sticky.