90% of traders lose money? - Page 13
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  1. #121
    Join Date
    Oct 2016
    Location
    Las Cruces, New Mexico (USA)
    Posts
    13
    I believe it. Most traders are new (the attrition rate for trading in general is staggering). They don't really know what they are doing (I include myself in that category). Currency trading is probably the most difficult instrument to trade. On top of that, most traders are lured into the "easy money" side of it. This compounds the psychological difficulty of losses. Simply put, new FOREX traders are going to lose money. There is good news in all of this, though.

    I've been trading for almost a full year now and I still lose most months-- okay, days. The cool thing is I have only lost about $200 in that entire year! I consider that cheap tuition for the Trading University of Hard Knocks. That is the wonderful thing about FOREX. You can trade small. In fact, my average risk is about $1.78! I trade about 4 different pairs on the 30 minute charts. My position size is always 1 micro-lot. That's it. I'm happy to lose that $1.78. Why? Because, well it's $1.78. I spend more on coffee every day. I hardly notice it. And like I stated before, It's much cheaper than a university education.

    I'm sure I'll eventually move the decimal point over to the right... eventually. In order for me to do that, I need to learn to be consistently profitable taking $1.78 trades. Until then, I will continue to take "I-Don't-Give-A-Darn" sized trades. I suggest the other 89% do the same.

  2. #122
    Join Date
    Mar 2016
    Posts
    396
    Quote Originally Posted by Mark M View Post
    I know by and large traders are loser from this market place due to lack of proper trading knowledge, but 90% loser, that’s not correct at all. Because nowadays traders are more advanced and knowledgeable then before.
    Of course they are if you say so. You only need to read posts here and elsewhere to see how wrong you are, let alone look at some real evidence
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  3. #123
    Join Date
    Dec 2015
    Posts
    483
    Why would modern traders be more advanced and knowledgeable than before though? Yes, people have access to the Internet, but Forex requires just as much effort and study as it did before.

  4. #124
    Join Date
    Dec 2006
    Location
    Wichita Falls, TX
    Posts
    2,909
    Quote Originally Posted by Mark M View Post
    I know by and large traders are loser from this market place due to lack of proper trading knowledge, but 90% loser, that’s not correct at all. Because nowadays traders are more advanced and knowledgeable then before.
    See Do 90%-95% of traders fail? Some actual data

  5. #125
    Join Date
    Jul 2013
    Posts
    2,540
    Quote Originally Posted by Rasuli View Post
    how to trade without losess

    There isn't a way to trade without losses, and it would be a huge mistake to try.

    Expectancy is what matters, not win-rates: you need to develop of a way of winning more, collectively, from your winning trades than you lose, collectively, from your losing trades. Aiming for the highest possible win-rate (i.e. losing as few trades as possible) isn't typically the right approach.

    If you look in beginners' textbooks such as Van K Tharp's Trade Your Way to Financial Freedom or Michael Harris's Profitability & Systematic Trading, you'll find explanations of the reasons why it's typically easier for aspiring traders to become profitable from lower overall win-rates than from higher ones. It may sound surprising, but it's so. Probability and statistics are counterintuitive subjects, but they're subjects of which every trader needs to develop some understanding, to achieve any success. And the time to try to do that is before you start practising/experimenting.


    Quote Originally Posted by Rasuli View Post
    & which broker has the best trading conditions?

    There isn't a single, objective "right answer" to this question: it depends on your account-size, type of trading, location and a range of other factors. This section of the forum will help you: http://forums.babypips.com/forex-brokers/

  6. #126
    There could be number of reason for a trader to lose money. Major problems are lack of proper money management. There were 50% trader (among the looser) who made profit from their 71% trades but still lost money! (a survey of 2016)
    Emotions, and trading phycology is another major issue for the new traders. Even trader lost all the profit after a win trade, due to use higher leverage.
    Anyway, my broker (Hanseatic Broker) has 1:50 leverage by default until you change it. I suggest the same. Practice a demo account lower leverage and then go to live. Or you will miscalculate in live trading.

  7. #127
    Join Date
    Oct 2015
    Posts
    149
    Quote Originally Posted by lexys View Post
    There isn't a way to trade without losses, and it would be a huge mistake to try.

    Expectancy is what matters, not win-rates: you need to develop of a way of winning more, collectively, from your winning trades than you lose, collectively, from your losing trades. Aiming for the highest possible win-rate (i.e. losing as few trades as possible) isn't typically the right approach.

    If you look in beginners' textbooks such as Van K Tharp's Trade Your Way to Financial Freedom or Michael Harris's Profitability & Systematic Trading, you'll find explanations of the reasons why it's typically easier for aspiring traders to become profitable from lower overall win-rates than from higher ones. It may sound surprising, but it's so. Probability and statistics are counterintuitive subjects, but they're subjects of which every trader needs to develop some understanding, to achieve any success. And the time to try to do that is before you start practising/experimenting.




    There isn't a single, objective "right answer" to this question: it depends on your account-size, type of trading, location and a range of other factors. This section of the forum will help you: http://forums.babypips.com/forex-brokers/

    Hi Lexys,

    About the let winners run and cut losses short theory which you (and others) have regularly proponed: I have a question - how do you balance the letting of the winners run - with the need to not be greedy. Have found that a winning trade is running to about 25 - 30 profit, but decide to let it run rather than profit, and then it comes to 10 - 8 pips and close before it goes to zero. So how do we balance this ? Is this all about the find the correct exit point with technical validation : you know like when it has resistance and looking at the SMA etc ?

    Thank you

  8. #128
    Join Date
    Sep 2010
    Location
    Cheshire, UK
    Posts
    2,216
    I don't believe in this over rated statement "let your winners run and cut your losses", certainly not for an intraday trading approach. It's an entirely subjective statement, counterintuitive and results in diminishing returns, overall.

    At the end of the day, if you have a large enough sample size of historical trades, with subsequent data for each, you will already know the optimum risk to reward. Surely this is the end result all aspiring traders want to get to, eliminating all "guess work and gambling" of letting a trade run or cutting losses too early.
    Last edited by Jezzode; 02-12-2017 at 12:21 AM.

  9. #129
    Join Date
    Dec 2006
    Location
    Wichita Falls, TX
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    2,909
    Quote Originally Posted by Jezzode View Post
    I don't believe in this over rated statement "let your winners run and cut your losses", certainly not for an intraday trading approach. It's an entirely subjective statement, counterintuitive and results in diminishing returns, overall.
    As with so many things, this is a concept which has been greatly simplified and presented in the wrong context very often. The foundation of the "let your winners run" recommendation comes from Prospect Theory and its idea of loss aversion. Basically what it boils down to is we tend to feel the pain of loss more than we enjoy winning. When I say losing, I don't just mean in nominal terms. I mean in relative terms. This is where the cutting winners short thing comes from. We fear giving back what we've already made, so we book the profit and fail to let the trade run its course per the parameters of whatever system we employ.

    You can see this whole thing come into play with so-called "hedging". Traders don't want to take a loss, so they irrationally put on an offsetting position because they think it prevents them losing.

  10. #130
    Join Date
    Sep 2010
    Location
    Cheshire, UK
    Posts
    2,216
    Quote Originally Posted by rhodytrader View Post
    this is a concept which has been greatly simplified and presented in the wrong context very often.
    This is ever so true - In fact I'd go as far to say that it's certainly become the 'statement of the year' with regards to promotional material and courses.

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