The Stop Loss is a double edge sword, I like to call in a " Guarantee Loss" I think you will find that the most successful traders do not use Stop Loss,
In my statement above, I looked back at my closed losing positions, and in most cases, holding longer would have been the smarter trade.
Think of it like a poker game, a stop loss is like folding your hand,
I think losses occur when there is no proper strategy as well as knowledge of the market.
Yes exactly!
I believe it is quite simple to why traders loses easily, I can think of some reasons:
I am sure there are more.
Love this comment
Agree with all the points that you have mentioned. Many people think that forex is a get rich quick scheme and thatâs how they lose.
Intraday Trading can help you churn out huge profits, however, one should also remember that it is a highly risky task. It is said that almost 90% of people lose money in intraday trading. Most of the intraday traders lose money because they fail to understand the market movements and end up taking the wrong decisions. An intraday trader must stick to a proper plan. A full-fledged intraday plan includes profit targets, factors to consider, methods to put a stop loss, and ways to select the right trading hours. The trading plan provides a comprehensive overview of how trading should be executed.
Intraday trading causes people to connect the emotions to the opening and closing of a trade.
I am finding longer terms trades, where the trade takes time to play out, then the connection between opening a trade and closing it is diminshed.
I think this reduces the emotional connection to any specific trade.
Something to do with dopamine?
Anyway, I think swing trading might be better for longevity and a sense of objectivity.
mmmmmm interesting "ive been round the block a few times regarding the use of stops, many traders on here are using leveraged accounts . For an inexperienced trader, not having a stop, can blow the majority of ones account.So a lot is to do with experience, at the end of the day i believe the knack of trading, is having big winners and small losers this is were the stops come into play
Intraday traders lose money because they expect large returns in a single day. You can be profitable only if you can control greed and fear and have a perfect technical understanding. To do so, one must first master technical analysis. Donât enter the live market with only a smattering of knowledge, since this will only result in losses. So, if you want to be perfect, conduct paper trading and evaluate yourself. If you think youâre good, go live trading; otherwise, practice, practice, practice.
The main reason is risk management, but it is also related to a lack of information about forex trading. Everyone loses money, but only a few people are able to make more money than they lose.
New traders are aware that trading involves risk of loss and that trading emotionally makes the loss more probable.
New traders believe that therefore small positions held for very short time periods reduce these risks.
Therefore most new traders lose money.
There are many aspects that can increase tradersâ profitability rate but traders should check whether they can cope up with those aspects. Like, leverage trading is a technique that can bring high profit and high loss as well. So, it plays with a tradersâ sentiment. So, traders should make their decision so carefully.
Traders fail because they donât have sufficient analytical knowledge. So, they should turn them into an analyst first. Traders should not only consider the market from the technical point of view but also from the fundamental point of view too. When these two types of analyses congregate, traders can produce a good signal.
Money lost in forex trading is lost 99.9% of the time due to one reason: opening lot sizes that the account CAN NOT afford, which is primarily due to âGreedâ and ignorance of risk management principles. Other reasons for forex losses include fear, a lack of discipline, a lack of knowledge about money management, and a lack of risk management.
I think youâre over-rating the value of TA knowledge, and that anything above the most basic FA knowledge is useless.
[quote=âMithcelRobert, post:94, topic:482703â]
Traders fail because they donât have sufficient analytical knowledge.
[/quote] its a bit like saying a crack shot would never commit murder
its about psychology ,it is a very generic word and used too much in trading but true
Basically, which traders are trying to make money here without proper trading knowledge & skill; end of the day they are unable to earn money here! But, new traders donât need to be panicked by this kind of 99% statistics! They just need to focus on their learning part!
Many traders fail due to the lack of experience and knowledge of the market, trading hastily, lack of efficient trading plan and poor risk management.
New tradersâ unrealistic expectations also lead to losses.
Maybe it should be rephrased why do 99 % who open an account end up losing money. Many these people who open an account dabble in trading ,the nature of day trading especially with leverage may attract a certain type who seeking instant returns with little effort and experience.