There are so many mentors teaching stuff like Risk management, Money management, controlling emotions, price action, etc. Still 95%+ traders are loosing money in this market. Why does that happen? I am a beginner and I would really appreciate if anybody answers this.
7 Likes
doesn’t matter if you’re master of technical analysis and risk management if you don’t take trading seriously and if u don’t have discipline u won’t be making any profits , trading psychology is the hardest part , buy or download “Disciplined Trader” by “Mark Douglas” , this book answers your question
10 Likes
I haven’t read the book, but have seen some videos of his, trading without fear, and trading without hesitation,etc. Is that what you meant? @Shrezinc
1 Like
I think people rush in before they are ready. They learn the surface knowledge which is enough to make them dangerous.
5 Likes
That is because you need to know how to trade to be able to make money.
Those things are important, but you need to know how to trade and be able to follow those rules.
Those rules alone wont make you a profitable trader, you can have great risk management, control your emotions and lots of things that people say, but if you dont undertand what you are doing, it just means that you will lose money slowly
4 Likes
Two main reasons - they don’t protect their capital, and themselves. It’s mainly psychological control over overtrading, revenge trading and gambling, plus failure to cut losses that lead to blowing their accounts.
However, you’ll learn a hell of a lot here and this site: tradertom.com.
Both are free. Tom will help you understand human reactions of pain and fear, which leads to most traders failing.
6 Likes
I think negative emotions prevent us from making a profit. I can never make a profit if I want to trade out of greed. And many traders try to trade without learning anything.
2 Likes
Most people don’t spend enough time to educate themselves. They just want to enter the market and make profits right away and become a millionaire.
What they should understand is this is a “Long term” game. You have to spend at least (MINIMUM) 6 months in demo trading. most people demo trade for a month get all cocky and start trading and lose. Minimum of 6 months demo trading necessary. While doing that you have to use every source available to educate yourself.
Most people just try to earn. they always forget first your LEARN, then you remove the “L”. Not the other way around.
8 Likes
They want a quick fix get spooked by losses and dont have the discipline to follow rules
3 Likes
Hi,
That is a very clever statement. Take the L plate off when you have learned enough. Like passing a driving test. The BabyPips School of Pipsology could be regarded as a “driving test” of Forex trading.
What many do not realize when learning Forex is that there are other benefits in life besides just learning how to trade Forex. For myself, that was in realizing to take Risk Management seriously Although it formed a large part of my career of the past 25 years, I had not given it the attention to detail it deserved until about seven years ago. Now it is the most important topic I think about when I approach a new project or programme. Same goes for “lessons learned review”. This changed in my mind from a “must do to tick the boxes” to a “must do to avoid making the same mistakes over and over again”
6 Likes
Most traders cannot manage risk. Start trading without discipline and plan. Be impatient and trade with a negative mindset.
2 Likes
Discipline and greed…I’m speaking from personal experience. I was extremely excited when I first learn forex trading. My 1st month $40,000 profit! Problem was, it was my DEMO account. I was trading off emotions. Kept moving my SL thinking the was going to turn around in my favor…it had to, after all I just did 40k in my demo. Totally blew that account. $500 in 3 hours. There’s an old saying I learned in sports “You’ll play like you practice”. Sometimes you have to get off the field, go back in training and come back better. Forex trading is 80-90% learning you.
No trader can tell when the market will go short or long but it’s like when you see storm clouds in the distance and you feel the air pressure shift. You may not know when, but rain is coming regardless of your emotions.
Hope this helps someone.
4 Likes
Hi,
This is gold dust. I have been off the field three times in the past 15 years and am back on now. Older, slower, but wiser.
1 Like
He doesn’t mean the videos. He means “get the book.”
There are no shortcuts.
2 Likes
Why? Well, cus it’s easier said than done. Patience is what it all boils down to for me. Who cares if it’ll take you 20 years (it won’t) to properly learn all the facets & intricacies of trading?
The point is, are you patient enough to take that much time to learn? 
3 Likes
Theoretically, if you trade without any aids you are gambling on a win/lose basis. This ought to mean you win 50% of the time, like tossing a coin. Unfortunately studies show that humans dislike losing a lot more than they like winning; in FOREX this results in them generally hanging on to losing trades far too long. DailyFX’s study showed that retail traders were indeed correct in their plan about 50% of the time, but that their losses, when they lost, far exceeded their gains when they won. Hence the reason so many lose money.
1 Like
Most traders fail because of being greedy and rushing into forex without any proper forex knowledge or strategy.
2 Likes
Doesn’t matter how many people preach about solid risk management, most still don’t listen. I also think the so called “influencers” don’t help with this posting shots of their apparent profits. Ultimately trading is a profession and needs to be treated as such. Most don’t and so the market happily parts them with their money.
3 Likes
Pareto principle at work! This is not only true in Forex, but in business as well (80-90% of businesses will fail while only 20-10% will succeed). If I have to make an intelligent guess, I think it’s because most people get in Forex trading with the wrong mindset. Don’t rush it and learn delayed gratification. Me, personally, I have a target of around 9-10 years more of Forex trading before I consider myself successful. Most people will not have the discipline to trade for that amount of time (some might even have a headache just thinking about it). This is because most people want instant gratification, they’d rather trade with gambler’s mentality and want to become rich trading Forex in a year or less. Don’t be like them! If you want to get rich with an all-or-nothing mentality, then go to the casino.
2 Likes
Thanks to me am new to forex thanks I will be patient