I believe - with good authority and personal experience, as well as investigation in this problem - that traders fail because of BUCKET SHOP brokers, who conspire, lie, deceive, sabotage, stop hunt and bet against their victims (“clients”). STINKForex (ThinkForex) did exactly this to me on the very first night I traded manually. They also - which was a new wrinkle in the sabotage that even experienced traders/teachers have not mentioned - changed my leverage/margin in mid-trading because they couldn’t adequately stop me by their usual methods of sabotage, inclusive of spiking the chart and hindering/causing massive slippages. They still claim, over and over, that they never do such things…just like Burger King telling us all that they NEVER use horsemeat in their burgers!!
LYING, STEALING, DESTROYERS, the lot.
I checked out LucrorFX.com and then a wise trader read their Terms and found, contrary to their statements on chat, that they WILL take opposing sides of your trade when they feel like it, on their own account or for others!! (The Anthony Hunt chat man for Lucror then said - apparently to try and cover up - that that was only for ‘MAM/PAMM’ accounts. But when I looked at the Terms again, there was no restriction on their taking of opposite trades…it was open ended. I think if a matter ever went to court, the legal Terms would take precedence over chat transcripts.)
How about Yadix.com I am checking them out, and they claim to be pure STP, anonymous trading, no restrictions, etc. Wise traders chime in please. I am just looking for an honest broker in Forex, but I keep being told that they are all crooks!! (Goldman Sachs just got caught telling their victims to sell a certain stock: then they bought it all up!! My Dad had just given me such an example last night, but didn’t know Sachs had just done this! Almost prophetic.)
Lack of knowledge - Take the time to learn what drives currency rates (fundamentals).
Overtrading - Trading often with tight stops makes brokers rich. The desire to “just” make a few hundred dollars a day by locking in tiny profits whenever possible is a losing strategy.
Over leverage - Brokers want to you use high leverage because it means more spread income. Bigger positions mean more spread income.
Relying on others - Real traders are lone wolfs. They don’t rely on others to make decisions for them.
Misuse of stop losses - Putting tight stop losses with retail brokers is a recipe for disaster. Allow the trade a fair chance to develop.
Trading during off hours - Bank fx traders, options traders and hedge funds have a huge advantage during off hours. New traders get fleeced.
I agree with what you’re saying… i am a newbie still and think both learning and trading are needed to understand what is going on and how it works. When I was just doing the reading i only understood so much but when I started trading then it (the reading) began to make more sense.
I know being a newbie and getting to hear these stuffs can be tough. But trust me no one becomes master in a single day. We all learn from our mistakes. Yes you will make mistakes and yes you will learn from them. How the market ruins you and how you can ruin the market. Thats how every business is done.
It’s great to see that even in the trading industry books are being searched for. I would recommend that if you are starting that you look for online webinars. Very often you can find free ones around the web. You can find coaching details at Australianinvestmenteducation.com
AS far as I know Chris Capre is one of the best mentors for Price action mentoring. He has every essential quality to be a mentor. I noticed that some traders here on babypips pretend to be mentors and attack the original mentors like Chris. However any one has a right to say anything. But we need to do identify what is good or bad specially in forex trading by ourselves.
Well I think most of the tarders fail just because of not having a good plan before trading. It has become very essential to have a good plan before trading in forex market. You should always trade smartly, by not risking too much and trading in a limit.
When any new trader entered in this market he only thinks that he is going to get profit. They do not get proper knowledge and experience. They just put orders . They are week in controlling on emotions. Most important think is risk management. They need to minimize loss and maximize profit ratio.They are not patience in trading that is why they fail in trading.
Again, can not agreed with comments, let me explain my point of view:
The are a traders, and traders, one of them live with pay INVCOM TAXIES from capital gain, and the other traders who do not.
The are newbies and newbies, some of them are greede and do not learn markets, and others do.
Both type of newbies are loosing. Let discus ONLY those newbies who [B]really wont[/B] to become a traders, spending money and time to learn how markets work. Find out why the greede newiebies loosing is not very much inetersting.
Jacek The Newbie
Traders fail because psychologically it is hard to take a loss… So instead of taking a loss traders either widen their SL or don’t even use one… Which inevitably will cause one or two huge losses that set them back months… And then the trader tries to make up for the loss by increasing leverage and taking dumb trades…
My best tip is to develop your patience and discipline…and control your fear vs. greed.
I do this thru daily affirmations and reading on these subjects
My best tip is to develop your patience and discipline…and control your fear vs. greed.
I do this thru daily affirmations and reading on these subjects