How do so many people lose money?

[lolpie]

Originally Posted by europeanson7

Hello,

I am fairly new to forex trading. I read the statistic that 90%-95% of forex traders lose money. However, reading forums such as these there as so many systems that claim to have profitable results, and are backed by literally thousands of posts on each system. How are so many people losing money if it's as easy following a free system posted on the internet? Are these systems not actually profitable, or are the masses too stupid to follow the guidelines exactly?

Another thing that I find laughable is when people say you need to find a system that fits yours personality. What does following directions have to do with my personality? Take the Ozfx system that I have been reading a lot about recently. It has clearly defined entries and exits. There is a right and a wrong way to follow the system, it's not subjective. I probably could have followed the system in 3rd grade if I had someone to teach it to me. My personality has nothing to do with anything, I either follow the system exactly or I don't. So what do you think, guys, do most traders lose money because the systems are not profitable or are most people just too stupid to follow directions?

For the forex traders losing money...as far as I know it's pretty much impossible to NEVER have a losing trade. That's what the 95% is referring to, not traders who lose it all due to a margin call

Second, personality has a lot to do with it. Some people like day trading, some people (like me) prefer systems like those developed by OzFx because you don't have to constantly monitor the charts. I check them 5 mins a day, 5 days a week. There's no way I have the patience to trade on anything lower

[Petronix]

Originally Posted by hayden

i only could spare $20 (it was going to be originally $10) !, as im living at home unemployed...


i plan to turn that $20 into a lifetime of riches though... just gotta avoid the ol' margin call...

im allready upto $79 in about 5 days trading !

thats very good! Look into Chaos trading by bill williams - amazing stuff - gave me over 4K last night with the spot trading on gold. I wouldnt suggest you try same sort of contract strategy at this point, since margin isnt high. But once you got around 3K, definetly do it!!! get his book (you can try to find electronic formats on the web; or buy it), dont listen to losers on this forum. his system is the only thing that will get you where you want to be, and gold will pave your way.

I will not post any more threads or posts on this forum (waste of time; too many people trying to look smart, but not making any cash), if you wish to know more you can e-mail me at lyubomskiy@hotmail.com , and i can help you get around it. if you trade chaos on gold market, you will make over 3000pips a week. now thats a thing to think about.

[Kabish]

Originally Posted by Petronix

Damn, finally i see some intelligence spark on this forums! Hayden, good on you for going live, put in a bit more around 200 buck will give you plenty of practice on micro lots, even if you blow the whole thing, the lessons you learn will cost much more!!!

That's exactly what I mean.

[zoreli]

dont listen to losers on this forum.

And you are Mr.Winner?

I will not post any more threads or posts on this forum (waste of time; too many people trying to look smart, but not making any cash),

Yeah...we are all idiots around, you are the only smart ass here, right?

if you wish to know more you can e-mail me at lyubomskiy@hotmail.com , and i can help you get around it. if you trade chaos on gold market, you will make over 3000pips a week. now thats a thing to think about.

Good joke. You know the one with two bears?

Any mods around to prevent this guy to insult us all?



Regards, Zoreli

[lolpie]

Originally Posted by Petronix

thats very good! Look into Chaos trading by bill williams - amazing stuff - gave me over 4K last night with the spot trading on gold. I wouldnt suggest you try same sort of contract strategy at this point, since margin isnt high. But once you got around 3K, definetly do it!!! get his book (you can try to find electronic formats on the web; or buy it), dont listen to losers on this forum. his system is the only thing that will get you where you want to be, and gold will pave your way.

I will not post any more threads or posts on this forum (waste of time; too many people trying to look smart, but not making any cash), if you wish to know more you can e-mail me at lyubomskiy@hotmail.com , and i can help you get around it. if you trade chaos on gold market, you will make over 3000pips a week. now thats a thing to think about.

Which book? I looked on Amazon and there's one published in 1995 and another in 2004.

[JonnyFX]

Sorry but having come from stock options and previously from commodities; GOLD won't pave the way for anyone for long term because Gold is one of those frivolous commodity that are not essential for anything. Another poster only here to peddle his affiliate nonsense. And we are supposed to email him to get the info? haha.

Trade things people & industry need and want. You're better off trading oil, coffee or sugar than Gold.

And considering what else this person posted, this post of his is gut wrenchingly hilarious. So a winner is actually suggesting that you learn by trading live and by blowing accounts? Please, learn on a demo account OK? Please. You only go live when you have your trading strategy pretty much squared away. You do not practice with the intent on learning on a live account. Trading is hard enough.

Originally Posted by Petronix View Post
Damn, finally i see some intelligence spark on this forums! Hayden, good on you for going live, put in a bit more around 200 buck will give you plenty of practice on micro lots, even if you blow the whole thing, the lessons you learn will cost much more!!!

[scottyPIPin]

Originally Posted by Kabish

Btw thank you scottyPIPin for the welcome and for the advices . Maybe do you have any good resource for learning more about indicators? (or you just wikipedia them)

I started out in the Investing section at Borders and Barnes & Noble. I can't remember all the books I found, but I started looking for Forex related books. There are a few good ones, but I couldn't find what I was looking for. I switched to looking for technical trading books. This is where I found most of the theory that I wanted behind the indicators themselves. Again, I can't remember all the titles, but if anyone wants to email me at forex@renocomputerservices.com I'll be happy to swing by there and put together a list of my favorites (I just want to be sure there are open ears before I take the time ). Usually what I'd do is get a cup of coffee, and while I was drinking it I'd pull a book off the shelf and just see what it was all about. This saved be hundreds of dollars in books, just cost me a few bucks in coffee which I probably would have gotten any way.

I also found a great website that talks about just about any indicator you could want. Forex | Technical indicators list. I still prefer the books because they talked about the indicators as applied to a strategy, but this website also does a good job of explaining the theory as well as common uses.

Another good resource that is similar to the website is the help file in MT4. It also covers common indicators, how they work and common uses.

Hope this helps!

[hayden]

scotty,

yes the help in MT4 is quite good, i dont have the money for books atmo, and no good book stores but illkeep ur email and when im in the big smoke sydney keep it in mind..

johnny,

gold is pretty tied in with our currency though but less and less as few stockpile it to manipulate the poeple and markets...

petronix,

thanks for the tips, ill drop you a line sometime, i wouldnt be so quick to disregard the majority of people here - but thats just me, alot would have validity in their own right,and i see it atleast they are here, when it comes to loosers lining our accounts, theres a whole lot more out of them out there that dont get as far as an internet forum...

[hayden]

Originally Posted by Petronix

thats very good! Look into Chaos trading by bill williams - amazing stuff - gave me over 4K last night with the spot trading on gold.

http://files.meetup.com/430309/Tradi...our_Prof. pdf

9mb

[randont]

I'd have to agree about starting a live account asap. And by asap I don't mean tomorrow. I'd also stress that you do not put in alot of money in at first. Build up your account very slowly ie if you double your account in a few months put another 50% in, don't put your life savings in at that point . You'll know when you've got a profitable system. You definately have to do enough demo trading to get the basics down and do your home work to learn about forex first. After getting to that point though. Put in enough to make it real.
It took me about 6 months of study and practice before I opened my live account. Probably would have been longer without a mentor. But having a little real cash on the line is the only way to learn the psychological side of this. And in my opinion psychology is key in this business. Would also like to add, I don't think I've ever worked so hard. I'm either studying or trading all day everyday while the market is open.