Survey: Why 90% traders failed?
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Thread: Survey: Why 90% traders failed?

  1. #1
    Helo FF associates,

    I am doing a questionnaire most traders drop money. Here and there mentioned that 90 percent of the traders collapsed. Are they failed due to thier trading procedure? unskilled? Or money management? Lack of information? and etc..

    The traders says Trade with the trend, Cut your losses and allow your profit run, Money management etc.. But we failed?

    I appreciate if you can please tell me the reasons so we newbie can find out for the professional that the ideal way/attitude to trade the forex.

    Thank you.

    QS.

  2. #2
    Quote Originally Posted by ;
    This case demonstrates how human nature contributes to traders taking too much risk in their drawback and being too conservative when in the dark. Think about this - its an very important lesson.
    Absolutely, I see this all the time. A trader down too much in a trade thinks to themselves they can not AFFORD to select the loss, not even realizing that their loss can get to be by not getting out, 3 to 20X larger. Yet on trades after suffering some drawdowns, they are inclined to get way out .

    I also have noticed a trader trading profitably changes their style and approach after you to some large losses. The avg profit of their trades drops 30 to 70 percent and they wind up taking the exact same huge losses.

    ALWAYS PLACE A HARD STOP if you're a new trader and/or lack discipline. It compels you to get OUT of bad trades. Many traders would be profitable if they just set a 10 pip stop.

  3. #3
    Quote Originally Posted by ;
    Currently if the tables were turned and you had the option of A) LOSING $50,000 guaranteed or B) 50 percent chance of losing $100,000 along with a 50 percent chance of losing $0 - which would you pick? Because there is at least a possibility of not losing anything Many people in this situation would chose option B.
    WOW! Powerful stuff!

  4. #4
    As I am a second-time around newbie, a twobie, if you may, I understand now that my money management the previous time I tried this several years back was atrocious. I judge my success by percent profits in my balance rather than dollar amounts each commerce. That accounts increase. I also entirely stop that per commerce b.s. I have rules today, so all trades are fire and forget. If I'm losing money I need to look at the way I'm selecting trades, or the way I'm placing stops, etc., not individual losing trades.

    God, I was such a retard!

  5. #5
    Quote Originally Posted by ;
    Helo FF associates,

    I'm doing a questionnaire most traders drop money. Here and there said that 90% of the traders collapsed. Are they failed due to thier trading procedure? unskilled? Or money management? Deficiency of information? and etc..

    The traders states Trade with the trend, Cut your losses and allow your profit streak, Currency direction etc.. But we still failed?

    I appreciate if you can please tell me the reasons so we newbie can learn for the professional that the right way/attitude to trade the forex.

    Thank you.

    QS.
    I believe you are asking the wrong questions. You will find a million and one ways. If you attempted to write a compreshensive list of approaches to fail you would find new innovative ways to fail being pioneered by young traders.

    If I had been advising traders who want to become profitable I would tell them rather to concentrate on various places. First, they need a method. The way for traders who are trying to understand how to exchange and also to become profitable is a mechanical method. Methods that need discretion are greatest for traders who are experienced in trading profitably. It is asking too much of inexperienced and unprofitable traders to exercise their discretion to turn a profit. It is not likely to happen. I would also counsel to make the system a simple mechanical system that is goal so that it is actually feasible to implement and understandable. It doesn't even have to begin with a positive expectancy though it will need to be developed into a profitable system over time before aspiring traders can begin making profits.

    After following this simple mechanical fully objective trading system for a little while, aspiring traders will begin to notice some things that look like they'd help the system become profitable. Most of those things won't help the system be profitable but some of them will. All of them need to be analyzed (that is where a lot of learning goes on) and also the chaff has to be discarded and the wheat retained. After making some adjustments assuming it is objective, simple, mechanical and implementable, aspiring traders must start out little trading their systems live. Now these traders will learn things. Rather than focusing on the results (profits or losses) these traders must concentrate on how well they're implementing their egy, and everything can be learned from the errors that are being created. A lot of learning will go on at this point if traders take the viewpoint that losses (and profits) are opportunities to learn. These traders might recognize that their system in its current form is untradeable, and might need to go back to the development phase several times before a system can be developed. My own experience has been that the system for me is one that is fully automated as well as the features previously recorded such as being simple, mechanical and profitable. Best of luck.

  6. #6
    What I wanted to have the ability to vote was all the above and much more although I voted for others.

    In final analysis, at least some of those traders who I have seen neglect did so as a result of lack of adequate funds to mae any system work, no matter how good. If you simply have a couple of hundred dollars, you had better be really good, really lucky and very patient if you would like to survive.

  7. #7
    This is excellent info. I have just started learning and trading. Emotions are a killer on trading. Whether it be greed or fear, the two are killer variables. Ive heard plenty of tales of men and women that want to remain to observe how much money they could make. Or the fear of getting a trade adn asking themselves if they want to do this. With this fear they may use greed to state I have to make that money back and they then give up and lose large. Thats why im going to try and concentrate on pips only. With two trillion dollars a day moving the cash will come to me personally. Im preoccupied with getting pips.

  8. #8
    Quote Originally Posted by ;
    I really like it how so many people quote the 90 percent (or 95%) of people fail in Currency Market statistic as though it were actually correct. I believe it's a small fallacy to emphasise that figure based on having heard it from others, although it might be true. I do not care how many people or what % are powerful - .

    With that said, and having traded very successfully for quite some time, I find it somewhat hard to believe that any greater than 10% of people who trade actually are effective in the long run, so perhaps the figure is accurate.

    I will say that many do fail. I've seen people, people I know, fail and fail hard, losing a lot of money. But failure is how you interpret reality, and trading is all about being able to handle any situation. Trade on
    I hear the two of these numbers all of the time. What's the source of these stats? I've yet to view it.

  9. #9
    Well, 67.87% of statistics are made up... LOL



    Quote Originally Posted by ;
    I hear either of these numbers all the time. What's the source of those stats? I've yet to view it.

  10. #10
    My failures in Forex were caused by all the above in the following order of significance:
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    Poor Money Management - 40 percent
    Greed - 30%
    Fear / Plogical Damage (feelings ) - 20%
    Incorrect Trading Strategy / Unskilled - 7%
    Lack of Economic Knowledge - 3%

    Manchild

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