I agree with most of the comments in this thread and especially nangking about proper money management.
Also as was said above the 95% thing is not correct and the facts are improperly interpreted. It is true that there is a good deal more losers than winners it’s because of the way accounts are counted open or closed. One trader may have several accounts for various reasons, say testing different strategies. well, maybe one account out of his five was a winner thus he closes the other four losers, moving on.
Let’s look at the reasons for improper money management. Let’s assume a trader know and understands proper money management, why would that trader deliberately sabotage themselves?
Kiss, its called gambling, not closing losers because you know more than the market, not allowing winners to run because of fear that you will lose what you have, your placing to large a lot size for your equity because your impatient to allow your equity to grow, using too much leverage to overcome these seemingly small losses and when the market pulls back you have no equity left to manage the trade again gambling you know more than the market, you believe in working harder to achieve superior results and not smarter. I do need to keep statistics or a log I know how to correct my mistake downright arrogance and so on, call it what you like its pure and simple gambling.
Ok after 18 months of solid screen time, videos, class and over 50K trades, I have said enough. I am tired of the dumb jokes and walking into the 2 x 4 with my forehead.
So how do you fix it and become consistently profitable every single day?
As Mark Douglas has said any monkey can be trained to trade what they see. Green candle hit buy enter, red candle hit sell enter. So what’s the matter with me.
As has been proven most any trading system can be profitable, ture some more than others but profitable. So what the matter with your system? or So what’s the matter with me.
So here is the deal, almost all traders put the cart before the horse.
if you have 1K of equity trade a .01 Lot.
If you have 2.5K of equity maybe.02 Lot
If 5K thru 10 K .03 Lot size and so one.
Remember the number one rule protect your capital and remember the number two rule, don’t forget the number one rule.
Depending on your platform, make sure you can close part of the trade, if not place two trades up to 1% of your account
So if your account is 1K how much is 1%? yep $10.00 bucks.
Why two trades, so when your trade gets into profit you can close half allowing the other half to run and moving your SL to Break even on the running half. Guess what, no matter what this trade can no longer lose one thin dime.
Keep a journal of your trades and basic stats.
How else will you know exactly what went good or bad and by how much?
Even if your a scalper and say I can’t write all that down, NP just keep track of the group or level.
If you can take a snap of your entry and exit or simply record the trade.
Then you do not advance to more aggressive trading until you are consistently profitable with the lest, ,01 and one trade or a two trade position at a time, let them close before placing the next trade.
This is what cured me of gambling and turned the corner to every day of consistent profitability.
Its no more BS its called taking responsibility.
Suppose your buddy came to you and said I need 10K for a trading account. What do you want to see before giving that buddy the money? Then and only then would you start trading real cash.