90% of traders lose money? - Page 14
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  1. #131
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    Manxx is offline Superior Master Contributor and Member
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    Quote Originally Posted by Jezzode View Post
    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.
    I think you are right on the nail here. For example, if you apply a particular trading method to various timeframes it will give different optimum levels for targets and stops. When one analyses and arrives at an understanding of the appropriate levels for one's own Trading style then there is no need for advice such as "let your winners run".

    I include in my journalling two additional columns: one for the theoretical maximum profit the method could have obtained from the particular trade and the other for how far the price reversed against my trade (whether it was stopped out or not). Over time this gives me data to determine what is the optimal profit level to look for and its percentage likelihood of being achieved - and the most sensible distance to place a stop to avoid accidents as well as unnecessarily excessive loss. It also indicates when there is a change in the overall volatility of the market and a need to tweak the limit/stop levels accordingly. I do this analysis for every trade opportunity in the sessions I watch even if I have not actually taken it.

    In the same way as " let your winners run" becomes unnecessary, so your own risk and money management criteria also remove any relevance from another similar phrase: "it is never wrong to take a profit".

    However, unless one is runnng a totally mechanical system, one should never override pure commonsense on those occasions when an action is clearly correct and obvious!

  2. #132
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    I think only 70-80% are failing in this business, loss is inevitable in forex trading but loss only comes when we trade blindly and without having knowledge, experience and skill, otherwise forex is lucrative business if we will do it with proper planning and strategy.

  3. #133
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    Losses are part of every business. But it is not necessary that all the traders lose a substantial amount of their money. Lack of knowledge, skill and experience are the cause of loss. One who understands the fact of learning from his own losses will eventually turn out to be a successful trader. Proper planning and understanding the concepts, strategies all can help prevent losses. Also, losing a certain amount professionally is not bad as it help build further gains.

  4. #134
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    Quote Originally Posted by service View Post
    I think only 70-80% are failing in this business, loss is inevitable in forex trading but loss only comes when we trade blindly and without having knowledge, experience and skill, otherwise forex is lucrative business if we will do it with proper planning and strategy.
    Why do you think it’s just 70 – 80% of the traders that lose money? I’m just curious, because I have never seen any kind of statistical information about it. I think the number of people losing money is very large, but how large exactly no one can tell.

  5. #135
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    Quote Originally Posted by mlawson71 View Post
    I have never seen any kind of statistical information about it.

    There's some, collated from numbers of brokers' anonymous customers' accounts, but it doesn't really prove very much, because it isn't published frequently enough and doesn't monitor the turnover of losing traders, which is what you'd really need to know, to interpret the figures.

    (Via the site at leaprate.com, somewhere, you can find some statistics from a company that tracks accounts at various forex brokers. It's not much use, really, for the reasons I mentioned above, among others, but it does consistently demonstrate that FXCM has the smallest proportion of profitable customer accounts and Oanda one of the highest. No surprise, there!).

  6. #136
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    Quote Originally Posted by mlawson71 View Post
    I think the number of people losing money is very large, but how large exactly no one can tell.
    See: Do 90%-95% of traders fail? Some actual data

  7. #137
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    FXCM's SSI indicator is a perfect example how most traders buy the wrong side of a trend or move, Look at the S&P in this chart, 88% of FXCM's traders are currently short the S&P, by the way the S&P hit a new all time high today

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  8. #138
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    Quote Originally Posted by Dennis3450 View Post
    FXCM's SSI indicator is a perfect example how most traders buy the wrong side of a trend or move, Look at the S&P in this chart, 88% of FXCM's traders are currently short the S&P, by the way the S&P hit a new all time high today

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    I don't think that example is necessarily accurate. The S&P is moving up, so a trader entering a short is certainly in drawdown on that position - however where they close the trade determines if they register a loss. For example, said trader may exit the trade on a pullback, and in profit. (Often called contra-trend trading). Having said that I do agree with the premise of your statement, that most retail traders are on the wrong side of the market.

    There was a study published on the results of the retail Forex market in France, where over a 4 year period, 89% of retail traders were "experiencing losses". I do not have the link though I do remember the study was published in Forex Magnates.

    I would guess the retail forex market in other jurisdictions would show similar results.

  9. #139
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    If you follow the SSI you will see as soon as the S&P starts turning down, most of those traders currently short, will start closing their shorts, and as price continues to move lower over several days, the shorts will continue to decline until long positions become the majority of traders.

    What is happening is inexperienced traders tend to hang on to their losing positions, until they can no longer take the pain of seeing their account decline or worst they blowout their account. And when they have a winner they take quick profits, missing out on big moves.

  10. #140
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    Quote Originally Posted by Rasuli View Post
    how to trade without losess & which broker has the best trading conditions?
    if you would like to trade without losses you should have good knowladge about trading, i recoomend you to read some forex blogs, for example i have read interesting articles on liteforex broker site. about brokers you should choose by yourself

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