How do so many people lose money?

[supermalv85]

Originally Posted by BrianSNJ

If I was going to start with one book...it would be Trading In The Zone by Mark Douglas

It will not teach you strategies, technicals, fundamentals, Fibonacci, etc....it will teach you how to keep yourself in control and how to focus your mind properly.

YOU WANT TO START WITH YOURSELF FIRST. The book will take you about a weekend. It is easy reading. It might seem a bit long in the tooth at times but just sit back down, relax and calmly read through it. Do not try to understand every single part of it. Just read through it and grasp the "big picture" the author is trying to relay to you.

When you are done reading it. Read it AGAIN and this time...pay close attention, make notes and get into it as deep as you can.

I just gave you $1 million dollars worth of advice for free. Even the top traders who are pros acknowledge the power of that book.

man thanks heaps for the tips! do they sell it on borders? i can't buy things from the net coz i don't have a credit card.. sigh

btw i love books about trader's psychology too. I feel naive without it. I read this book called the zurich axiom the other day. And it just opens my eyes a whole lot from it

[ECN-scalper]

I use ECN but ECN is overrated and not for
everyone. Only consider ECN if you are
going to scalp and will trade huge lots.
Not 1-2 lots but 10-50 standard lots
at least with the target TP goal of 2-5 PIPS.
Don't get sucked in with this no spread
nonsense. Whenever commissions are involved
whether you win or lose, you want minimum
trades for maximum hit and returns. ECN
is not for newbies who want to trade nano lots.

[tymen1]

Thank you, ECN-scalper, for that very interesting piece of information.

I shall keep it in reference.

[BrianSNJ]

Originally Posted by Jimmy Jones

I'll add my two cents. I've been trading a few demo accounts for a few weeks, trying out different systems. All the systems I have tried seem to work if I can follow the rules of the system. However I seem to have a problem called 'emotions' that has reared it's ugly from time to time. Impatience, fear, and greed to name a few.

In my humble opinion with the limited knowledge I have, it seems keeping emotions in check will be a much bigger piece of the pie than finding the 'holy grail' trading system...

Read the book I mentioned above! It will solve that problem for you. I am not kidding.

And yes, you are exactly correct. Many systems here and found in other forums do work. But DO YOU WORK? Does your BRAIN work? You need to have your head working correctly. How can you drive a car if you are drunk of your rear? How can you trade if your head is all drunk with emotions?

[triphop]

Ewok, plenty of great UK brokers, but they're mostly spreadbetting companies, because it's tax free in the UK as it's classified as gambling. Basically works the same but rather than using lots, you bet an amount per pip.

Brian, I got to agree - Trading in the Zone is a great book. I didn't read it for ages, because the title makes my toes curl, but it is genuinely very useful.

[MakeMoneyorDIE]

Because you win a little and it SUCKS you in, then you think its easy
and then BAM ... takes your money....bottom line you are trying to predict something that is unpredictable, you put your best effort on you system but there are still too many unknowns that effect the market, people make money
but only a small precentage.....you have to be tough and emotionless sometimes, which is hard to do with real money...

Try this test first to see if you are ready
take a 100.00 BILL and go to your bathroom and flush it down the toilet

if you are ok with that afterwards, then forex might be for you

[BrianSNJ]

Originally Posted by MakeMoneyorDIE

Because you win a little and it SUCKS you in, then you think its easy
and then BAM ... takes your money....bottom line you are trying to predict something that is unpredictable, you put your best effort on you system but there are still too many unknowns that effect the market, people make money
but only a small precentage.....you have to be tough and emotionless sometimes, which is hard to do with real money...

Absolutely true. Some traders just get lucky their first 2 or 3 trades or their first 10 trades. this gives them arrogance, and they start getting WAAAAY too aggressive and daring...so a small risk turns into a large risk looking for the big pay off and some bragghing rights. BAM! You lose. now you are shocked, your confidence is weakened, you make another big bet to get it back...BAM! You lose. You started off going in a specific, well planned direction and now you are wandering aimlessly in the Forex woods and daylight is running out.

Trading In The Zone addresses this stuff. I really thought this book was going to be a bunch of hype but my friend gave me his copy and I am glad he did! I did have to buy my own copy because he wanted it back. He said it was too valuable to give away, he said he would need to reread it regularly to reinforce himself. I was amused at first. Now I clearly see what he meant!