You’re right too, but I think emotions won’t affect the trader’s results if he strictly follows his trading plan which should include money and risk management rules. For example, if your risk per trade is 2-3% of your trading account, leverage will no matter since your max risk is known in advance
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You are absolutely correct, money and risk management is very vital in trading.
I have noticed overtime that most traders have good strategies, but lack self control and it is the man behind any strategy that is important and not the strategy. We should just try to avoid any activity that will make us emotional in trading because we can’t be emotional and logical at thesame time. If we are emotional, then we can’t be logical and vice versa.
The best way to exclude emotions in trading lies in the trading strategy automation
There are many reasons that a trader fails, the lack of knowledge or the emotions which hold them back and lots of other, but the main reason is that they don’t accept their mistakes and repeat it thinking that the result will be the same, which is totally wrong.
Thank you for this amazing explanation. First time I am reading something on this topic that points out the real problem. Most traders come here with the hope of becoming rich by overnight. They are unwilling to study. Babypips has amazing educational resources but very few traders complete the course. All are chasing for ready-made strategy.
It’s a rhetorical question. Because not everyone can win. Those become winners who are the smartest, the most capable and the luckiest.
I don’t think it is a rhetorical question. BUT the statistic is not the true one. When I started the figure was 95%, which is more realistic - And the 90% figure is a part of the new statistic which is 90% of retail traders lose 90% of their account within 90 days ! (The other 10% are simply “Dormant accounts”)
without recommending him for anything else - watch on u-tub “Ant0n kreil annihilates” to understand WHY ! - then watch the 3 BBC - 1 hour programmes he was involved in, which will pop up a little further down the list !
[Edit - and the answer is - as the OP stated - the “losers” are “Obeying the narrative” - STop being sheep ! - learn to think - the d4mn prices just go “Up and down” - That’s your starting point ! ]
Neither do i
and it was the same when i started as well,
although i also believe that the figure PROBABLY is not exactly 95% (i think this is just a guess) i think it would be closer to 97.825 % or something like that
i think 95 is just a figure someone pulled off the top of their head to describe a huge amount
and later it turned to 90 because it sounded cool and it resonated nicely with the 90-90-90 thing
OK, thanks for the recommendations
I think so too, have always suspected the statistic is not accurate.
TO SAY THIS as a blanket statement is illogical.
it’s only logical to hold something forever ASSUMING YOU KNOW FOR CERTAIN THAT THE INSTRUMENT CERTAINLY MAKES MONEY OVER TIME.
Currency does not always work like that
Stocks however are a different animal as are indexes
so… it depends what your trading
there’s your example
Warren is no fool and i’m sure that he doesn’t mean hold something forever regardless of the instrument
Indeed you have said the correct thing. I think each fruitful trader has his own particular manner of profiting. It’s interesting. Issue emerges when we attempt to duplicate others. Or on the other hand endeavor to force my methodology on others. Trading is a mental diversion. Everybody has his own particular kind of comprehension and considering. That is the reason 90% traders are failure.
There many reasons the most traders lose their money in long term. In my opinion, the most important reason is the new traders want to have unrealistic performance (e.i. 50% per month) in order they are interested in trading. That´s why they risk sometimes much more then they should. They often start with some good money management, but eventually they become less disciplined, especially when they lose some money.
Thank you for your post. Yes 90% traders fail in trading. Most people become unrealistic when come into trading. In any other business with 10$k, people’s profit expectation is realistic. But when it comes to forex their expectation soars 10 times or more. That too with being skilled. Most traders even don’t know what they are doing.
I agree… Very well written…
You say right in any other business people expect less as they invest thousands and expect less But in forex Just $10 investment will be expected double in one trade they plan for compounding and dream they will grow their account in thousands in one or two months. This unrealistic thinking is a cause of loss because they do not know how to trade in market.
The other thing is that forex is something intangible. After the first loss, it may seem to some traders that all of it is lies and they stop trading. But they don’t think about why they lost their money.
The 90% statistic needs a timeframe to have any meaning. 90% of traders lose a trade? Yes. 90% of traders lose everything on their first day? No.
It’s probably more accurate to say 90% of new traders lose and give up within a year. Who knows for sure? The brokers.
Hello, it may be obvious to everyone but me, however, I must ask,
What is meant by buy into weakness and sell into strength ?
How can we tell there is weakness? Or strength? By the size of candlesticks?
Please clarify this for me, I will appreciate your help very much. Thank you, sir Pipslord
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