Why trading is so difficult?

This is a discussion on Why trading is so difficult? within the First Steps forums, part of the Reception category; We know that more traders losing money and less traders trading in profit, but why? We have only two directions: ...

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Old Jun 28, 2011, 9:55am   #1
 
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Why trading is so difficult?

We know that more traders losing money and less traders trading in profit, but why? We have only two directions: [UP] and [Down] . If two traders will open trades in opposite directions one will make money an second one will lose.

During typing got the idea, if more traders losing money, so we have more traders that open trades in wrong direction and less traders in correct. Why?

Josef
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Old Jun 28, 2011, 10:04am   #2
 
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Re: Why trading is so difficult?

Not just that, though - they might open in the right direction but while the profitable trader knows when to get out and take profit, the other watches profit turn to loss; similarly, when they're both wrong, the profitable trader knows when to get out and accept a small loss, the other prefers to hurt himself by seeing the MOAL (Mother Of All Losses).
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Old Jun 28, 2011, 10:23am   #3
 
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Re: Why trading is so difficult?

Joseff started this thread
Quote:
MOAL (Mother Of All Losses)
Thanks for explanation.
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Old Jun 28, 2011, 10:51am   #4
 
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Re: Why trading is so difficult?

Quote:
Originally Posted by shadowninja View Post
Not just that, though - they might open in the right direction but while the profitable trader knows when to get out and take profit, the other watches profit turn to loss; similarly, when they're both wrong, the profitable trader knows when to get out and accept a small loss, the other prefers to hurt himself by seeing the MOAL (Mother Of All Losses).
Correct! This is the practicality of having so many variables leading to almost unlimited combinations of what the trader can do. Hence the need for some rules and a game plan to reduce the variables effect.
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Old Jun 28, 2011, 11:38am   #5
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Re: Why trading is so difficult?

Quote:
Originally Posted by shadowninja View Post
Not just that, though - they might open in the right direction but while the profitable trader knows when to get out and take profit, the other watches profit turn to loss; similarly, when they're both wrong, the profitable trader knows when to get out and accept a small loss, the other prefers to hurt himself by seeing the MOAL (Mother Of All Losses).
hmm...difficult one that, I've been 50 pips+ up twice in my current eur long taken yesterday, yet because my plan is to hunt for bigger pips, and according to my rules I've no reason to exit, I'm still in. Moved stop from 65 pips to 30 pip is the only management and adjusted take profit order to the 14400 line (approx 150 pip profit). If I start getting excited about 50 pips my plan falls apart, but I'm sure many on 'ere would have me sectioned for the times I let 50 pips slip through my fingers, but I have no alternative if sticking to my plan..which works ..for me.
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Old Jun 28, 2011, 11:51am   #6
 
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Re: Why trading is so difficult?

Quote:
Originally Posted by Joseff View Post
We know that more traders losing money and less traders trading in profit, but why? We have only two directions: [UP] and [Down] . If two traders will open trades in opposite directions one will make money an second one will lose.

During typing got the idea, if more traders losing money, so we have more traders that open trades in wrong direction and less traders in correct. Why?

Josef
just goes to show that it's where you get out that makes or breaks, not where you get in.
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Old Jun 28, 2011, 12:05pm   #7
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Re: Why trading is so difficult?

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Originally Posted by barjon View Post
just goes to show that it's where you get out that makes or breaks, not where you get in.
None of us will ever be 100% satisifed with our exits and as Chuck says;

"We can enter trades on our own terms, but we must exit based on terms set by the market.."
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Old Jun 28, 2011, 12:18pm   #8
 
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Re: Why trading is so difficult?

Joseff started this thread
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Originally Posted by Black Swan View Post
None of us will ever be 100% satisifed with our exits and as Chuck says;

"We can enter trades on our own terms, but we must exit based on terms set by the market.."
Wise words!
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