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.
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
Trading without loss I think impossible in forex, trend market very dynamic and sometime unpredictable, loss also as part in trading I think but as trader need also manage these risk and always make sharp trading skill analysis
By reading only Forex Blogs and article that’s not possible at all to reduce loss
I would think that's probably right, for most people, most of the time. That's in huge contrast to reading accredited textbooks, though.
What goes into forex "blogs and articles" mostly goes there for promotional/marketing purposes, and that's exactly what you need to avoid, because it's usually been published with no quality control, no editorial approval, no peer review, and for reasons more to do with promoting other people's businesses than with helping you.
This is why you're generally far, far safer and better off reading long-established, accredited, mainstream, orthodox textbooks (to which very few of the above problems generally apply!) instead. Bear in mind that you're trying to be one of a small minority, who ever achieve what you're trying to do, so you really can't afford to stack the deck even further against yourself in a field in which overall success-rates are so low.
Originally Posted by Mark M
we have to move real trading practically if we want to reduce our losses by trading
A rather widespread misunderstanding.
It sounds so superficially attractive, doesn't it, to express the view that practical experience is needed to master a practical technique? Who could possibly argue with that?
The reality is that it's a sentiment which leads huge numbers of people astray.
Yes, it's needed, too - but later.
One of the important and very significant differences between an aspiring trader with 3 years' good experience and another with 3 months' poor experience repeated twelve times over is typically that the latter believed what you've just said, above, and tried to put it into practice without first having mastered the essentials of the counterintuitive subjects of probability and statistics that all successful traders need to come to terms with not only to become successful but also to benefit from their learning experience.
For this reason, what you're saying above (and elsewhere) is actually misguided.
It is not a myth but actually a reality. But it is due to the fact that most of the traders aimlessly in order to just earn profits. The first and foremost reason that most of the traders don’t succeed is that they lack persistence and patience. Instead of this one should treat trading as a business and trade as dedicately as they do business to earn living. Even after suffering loss keep the spirit to go on.
Measuring the number of losers is pretty hard as forex is worldwide business and large number of people are attached with this business from all over the world, most of them are failing due to lack of knowledge, experience and skills and I think 70-80% are loosing and rest of the people are earning reasonable amount.
I think that's about accurate. Accurate statistic. Because a large portion of traders who lose their money, get disappointed when losing their money and without trying to figure out why leave with nothing.
people need experience and skill not to get loss in FX, go to the library and borrow some books. 99% of anything you read online will be biased towards getting you to buy some forex product or service, such as creating an account on a trading platform.
The easiest and the most effective way for gaining knowledge on Forex is reading many Forex tutorials and trading on demo account. Reading will help you to get the basic knowledge on Forex, and trying on Demo accounts will help you to practice your knowledge. Nowadays there are thousands of tutorials, and many brokers who offer trading on demo accounts.