Why most Lose Trading?

This is a discussion on Why most Lose Trading? within the First Steps forums, part of the Reception category; I just want to start a thread on Key factors which lets mostly in losing Trade. Why a newbie starts ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Nov 24, 2009, 8:35am   #1
 
1 Posts
Joined Nov 2009
Thumbs up Why most Lose Trading?

I just want to start a thread on Key factors which lets mostly in losing Trade.
Why a newbie starts losing trade, what are the measures which they must follow it up to be stable if not successful.

I hope much of you will like to share your experiences across for the newbie’s.
_____________________________

Last edited by Lightning McQueen; Nov 24, 2009 at 4:13pm. Reason: link removed
urbonsome is offline   Reply With Quote
Old Nov 24, 2009, 9:07am   #2
Joined Feb 2002
Many reasons behind consistent losing, all psychological within the trader themselves. These are expressed through poor money management, which fails to hold on to the trader's capital long enough for them to overcome their own internal failings.
tomorton is offline   Reply With Quote
Thanks! The following members like this post: shadowninja
Old Nov 24, 2009, 9:25am   #3
Joined Nov 2009
lets say markets are random and you have a 50% chance of being right or wrong...to survive you need to make more money when you are right than you lose when you get it wrong.. sounds easy but it is the hardest thing to do.. run profits cut losses!.. most newbies (and many experienced traders!) will run losses and cut profits short.
dealer911 is offline Other (Please email T2W with details)   Reply With Quote
Thanks! The following members like this post: shadowninja
Old Nov 24, 2009, 10:16am   #4
Joined Jan 2009
I started a thread like this once, and someone replied "trading must be difficult, because otherwise we'd all give up our jobs and do it". The causality of this argument is perhaps the wrong way round, but you get the idea.

Try reading Van Tharp's book. He outlines some of the common reasons why traders go wrong - breaking their own rules, betting too much, fearful of losing profits, hopeful losses go away, etc.
meanreversion is offline   Reply With Quote
Old Nov 24, 2009, 10:19am   #5
Joined Jan 2009
Sometimes it's simply arithmetic. If you can generate 30 pct returns on capital a year, that's a good return. So if you need 30k to live, your starting pot has to be 100k. The average spread bet account balance is 20k. Thus it's likely betting too much could be a factor. I now expect many comments back along the lines of "I make 30 pct a month", which is usually what happens.
meanreversion is offline   Reply With Quote
Thanks! The following members like this post: Lord Flasheart
Old Nov 24, 2009, 10:37am   #6
 
Lord Flasheart's Avatar
Joined Jan 2004
Thats exactly what happened to me.I started the first year with £5 and soon lost that. I then doubled the next £5 making me break even. Ahhh it took me a year to do that so with living exspenses i was down £25,000 and yet my trading was break even. The next year i made £8000 but was still at a net loss of nearly £40,000. You get the picture guys.Learn from it,the most important things are money management,discipline,risk reward ration and then finally your set ups and trades
__________________
If you are serious about trading then you need to look at this link

http://www.youtube.com/watch?v=6CnAsdQiGzs
Lord Flasheart is offline   Reply With Quote
Thanks! The following members like this post: shadowninja
Old Nov 24, 2009, 11:10am   #7
Joined Jan 2009
The French consulate, a property in Sydney, recently sold for £13mio equivalent to one of the Murdoch sons. The French originally bought it for £26,000 in 1956. Sounds like a pretty impressive return, doesn't it.. the value increased 500 times.

However, if you work it out, it equates to an annual return of 12.5% compounded. Which sounds like nothing, put that way.

Hedge funds usually aim to make 20 pct a year. With the power of compounding, 20 pct a year is a formidable number in the long run. There's no point trying to make your fortune overnight. Trading is a business like any other.. aim for achievable and consistent returns whilst minimising risk of ruin, and over time, it should work out.
meanreversion is offline   Reply With Quote
Thanks! The following members like this post: Shanghai
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
NEVER LOSE AGAIN!! TheRumpledOne TheRumpledOne Discretionary Trading 2605 Nov 24, 2014 12:11pm
The Real Reason Most Traders Lose- The Real Odds of Winning at Trading: mrsoul Forex 75 May 8, 2011 12:29am
How can I lose? samnakthong First Steps 34 Jun 13, 2009 12:12pm
How To Lose Money Trading CYOF Psychology, Risk & Money Management 175 Feb 22, 2007 9:04pm
Lose/Win Percentage for a Good Trading System pkfryer Psychology, Risk & Money Management 61 May 27, 2004 11:51pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)