90% of traders are losers

[bulldozer]

Twig,

Yep totally in agreement.

And move unto something else until you know you'v found the right way of trading thats suits you.

[email protected]
Bull

 

[Finlayson]

trading is like many things people try to pursue in life

wat u focus on will tend to be the dominant result...., I guess wat I am trying to say is if u have decided u will be a successful trader then that is wat u will be regardless of who u are or where u r from .....the when is the unknown .....& why most people give up! (90%).

when I was 10 & decided that I was going to play like my hero's( Jimi H & SRVaughen ......i never focused on 'whether I can or everwill'............I just cracked on & did it.........a never ending learning curve im afraid, but an enjoyable one, as adults we tend to lose this focus & judge ourselves on wat others can or have done.

simply , I guess I am saying if u focus on the 90% chances are u may give up at some point & become one of them. people make money in the markets or it would not exist & you have to decide to be one of them

Jay

 

[bulldozer]

Fin,
Many musicians change their style after a few yrs cause they realise that its the only way to become successful! ie whitney Houston, Elvis, etc . Some people start of in R&B and then change to pop or vice versa! You have to find where your good at !
I wanted to be an Actor at one time, when that didn'd happen I wanted to get into the Motor trade and made good headway in it for several years, but then i wanted to get into the property business and became very successful at it. A few yrs ago cause of health reasons ive cut down a bit in the property business and focused more on the derivative mrkts.

You have to find:
a, what your good at .
b. Something that you enjoy doing.
c. Find ways how to make your choice better. SB was not for me! so i plucked up the courage to knock it on the head. I now do SB on rare occassions ie hedging on derivatives.

My advice to people is: If you cant make headway/profit from SB GET out! before SB gets you OUT! before it ruins your account , your health, home and your marriage. .

[email protected]

Bull

 

[chump]

a.what your good at .
b. Something that you enjoy doing

B is often what drives A ..

 

[bulldozer]

a.what your good at .
b. Something that you enjoy doing

B is often what drives A ..

====================================================================

Chump,
Not in all cases.
I'm good at decorating the house, cause i want it to look good for a few years at least! but i absolutly hate decorating. it would drive me mad if i had to do it for a living

Bull

[email protected]

 

[Finlayson]

yes I see what u r saying & certainly agree with your points....one thing, success should not be defined on how others percieve you...this is why many people fail....if u chop & change do u achieve anything? ..my success in music is defined by playing what I love & loving what I play & that was always my goal, I just love the music....u will find this true, I can imagine ,if u ask many of the greats in most endevours

as the guy said in that film ( cant remeber the title ) ...'' the secret of success in life..is just one thing!''

I know this is not in direct parrallel with trading & I agree that IN SB that u are up against it..but my point is this.....the world is full of naysayers & doomsdayers & if we buy into that then that is all we will ever be.

I c some of your points & agree it is futile to just ignore your failures....learn from them. but 90% of people fail at most things they try(TRY) ...this is just the way things seem to be, nothing wrong here just one of those formulas in life I suppose. for me if you have decided to do something you do it , otherwise you never really decided.

I know I have tried many things & given up......they just werent for me I guess... & I am sure I am mediocre at many things that I still do that 5%, out of the 100 with me ,enjoy great rewards while I play at it...but that doesnt mean it dont work... just not in my grand scheme.

decide what you want to be , do or have....& listen to no others opinions of wether it is possible for you.

someone's opinion does not have to be your reality

Jay

 

[SOCRATES]

a.what your good at .
b. Something that you enjoy doing

B is often what drives A ..

But in some cases yes.

Then if you are able to get it to roll on cyclically, it can only get better and better and more and more enjoyable.

 

[pezzutti]

you have to have an edge. Statistics helps a lot. Markets are not random. There are technical situations
that favour certain behaviours. However, commissions, taxes and slippage make the game very difficult.
paolo

URL removed by Rossored

 

[CityTrader]

rso when lots of people are hitting his offers, he's gonna be the wrong way round for a directional trade - lots of buyers, market maker is going to be short. he doesnt want price to spike up, so it wont necessarily be the MM who makes price spikes.

You "take" an offer and "hit" a bid...

CT

 

[TraderPattern]

You ask too many key questions that would take a week to reply in depth.

In a nut-shell, markets can be predicted, people do it all the time. The profitable question is how.

Homework is a key factor in deterring a markets direction along with accumulated knowledge, conviction in regards to a decision, money management and, not least of all, an understanding of human behaviour.

I think it best that you open a paper account with one of the many Spread Betting companies on the Internet. Do your financial home work, make a few predictions. See if you have that cutting edge that eludes 90% of the gamblers.

And it has to be said, a roulette wheel it is not. You need plenty of balls to play this game!

Happy trading

UK

You don't need to be a great 'predictor' to make a living trading.

I get things wrong most of the time, but I make a v.good living from trading.

 

[TraderPattern]

Finally, run a tight stop from your entry point to cut out loss making trades quickly. Oh I know (its been said a million times before) but maybe you should try it sometime...run your profits (with a trailing stop) and cut loss making trades out quickly. They really are the golden rules to making money on the markets.
When you look forward to trading rather than loathing it (because you think you will lose) then you know you have cracked it!

You don't need to run your profits to be a successful trader. Some of the best traders are base hitters and get few, if any, home runs.

What doesn't work is being wrong most of the time and being a base hitter. Anything in between can be made to work.

 

[Chorlton]

You don't need to be a great 'predictor' to make a living trading.

I get things wrong most of the time, but I make a v.good living from trading.

Do you mean that rather than predict the market, you trade what is actually happening??? Also, can I ask what instruments you trade and in what timeframes??

Thanks for any help,

Chorlton

 

[Baruch]

Here is a winner:

http://www.stressfreetrading.com/darvas.htm

http://www.ind3x.com/articles/an_interview_with_nicoals_darvas_1975.html

 

[Jerry Olson]

I have been a trader for 20 years and although do not rely on it for my main income, I trade successfully in that I make consistant profits. The one thing I learnt all those years ago (the hard way!) is not to PREDICT the market but to REACT to it. I do not agree with traders or pundits who put an order in the market for tomorrow to buy a currency say at a certain level with a 25 or 50 pip stop behind it. How can you possibly know today what the market will do tomorrow? No wonder the majority lose if that is how they trade!
I would far rather react to some new and influential piece of news which usually transcribes itself into trading with the daily prevailing trend. (Look at the colour of the daily candle to establish that!)
Many pages of traders comments have been written on the subject of entry and exit levels. To me your ENTRY point is absolutely crucial. I spend most of my time and effort on getting the entry point right. Ah, I hear you say, but how do you do that? Study the charts my friends, analyse where you got it right and where and why you got it wrong. Think through the sequence of events on winning and loss making trades (make notes they will help you) and suddenly you will see the right pattern emerge that tells you when to trade.
Memorise that pattern until it is imprinted in your mind like a templete. Then and ONLY then trade when you recognise that pattern and the sequence of events that created it.
Finally, run a tight stop from your entry point to cut out loss making trades quickly. Oh I know (its been said a million times before) but maybe you should try it sometime...run your profits (with a trailing stop) and cut loss making trades out quickly. They really are the golden rules to making money on the markets.
When you look forward to trading rather than loathing it (because you think you will lose) then you know you have cracked it!

Hi Hal

excellent post, your 100% correct pertaining to entries. Critcal isn;t the word for it really. However emotions are the demons we fight each day. If traders learn how to use the tools and tactics of a scalper or swing trader properly then they gain the knowledge and the confidence of hitting singles not swinging for the fences all the time.

It all boils down to greed & fear. Greed kills like speed. I am always telling traders to "sell too soon". Take the money and run (TTMAR). Let someone else make some profits too.

If you always sell on the way up and not wait for that reversal stick to form your going to be a better more consitant trader overall. Take the thought process out of the trade and become mechanical and robotic. Push the buttons using the mouse and forget all the outside noise.

have a good Sunday

 

[Chorlton]

I have been a trader for 20 years and although do not rely on it for my main income, I trade successfully in that I make consistant profits. The one thing I learnt all those years ago (the hard way!) is not to PREDICT the market but to REACT to it. I do not agree with traders or pundits who put an order in the market for tomorrow to buy a currency say at a certain level with a 25 or 50 pip stop behind it. How can you possibly know today what the market will do tomorrow? No wonder the majority lose if that is how they trade!
I would far rather react to some new and influential piece of news which usually transcribes itself into trading with the daily prevailing trend. (Look at the colour of the daily candle to establish that!)
Many pages of traders comments have been written on the subject of entry and exit levels. To me your ENTRY point is absolutely crucial. I spend most of my time and effort on getting the entry point right. Ah, I hear you say, but how do you do that? Study the charts my friends, analyse where you got it right and where and why you got it wrong. Think through the sequence of events on winning and loss making trades (make notes they will help you) and suddenly you will see the right pattern emerge that tells you when to trade.
Memorise that pattern until it is imprinted in your mind like a templete. Then and ONLY then trade when you recognise that pattern and the sequence of events that created it.
Finally, run a tight stop from your entry point to cut out loss making trades quickly. Oh I know (its been said a million times before) but maybe you should try it sometime...run your profits (with a trailing stop) and cut loss making trades out quickly. They really are the golden rules to making money on the markets.
When you look forward to trading rather than loathing it (because you think you will lose) then you know you have cracked it!

Hi,

Firstly, I agree with your comments but I do have a question for you. You mention that even though you have traded for over 20yrs, you do not rely on it for your main income. Does this mean that you also have a full-time job?

The reason I ask is that IMO most PI's (including myself) also have full-time jobs. You mention that a lot of traders place buy orders for the following morning and that this is a dangerous way to trade the markets. Even though I agree with this point, as I hold down a full-time job, I am unable to respond to the market while I am at work & therefore I have to rely on the charts to allow me to choose a buy level. I would suggest that a lot of other PI's are in a similar boat.

On the days when I have been off-work, I have been able to respond to news as and when it is released and have (on quite a few occasions) made some good profits trading in this fashion. However, as I currently do not have the confidence to give-up work altogether and trade full-time, I am unable to use this method for the majority of my trading.

Consequently, can you offer any advice and how you could more efficiently trade the markets while at the same time holding down a full-time job?

Thanks & all the best,

Chorlton

 

[Ambrose Ackroyd]

I know it's an old thread but has anyone ever really considered why 90% of traders are losers.

Maybe it's because 90% of losers are traders.

 

[tar]

I know it's an old thread but has anyone ever really considered why 90% of traders are losers.

Maybe it's because 90% of losers are traders.

http://www.trade2win.com/boards/general-trading-chat/105956-95-myth-3.html

 

[CityTrader]

I know it's an old thread but has anyone ever really considered why 90% of traders are losers.

Maybe it's because 90% of losers are traders.

Maybe it's because most traders aren't really traders but IT guys ( or similar) thinking it's a short cut route to riches and because there's no formal training nor apprenticeship expect it's easy and requires little skills. I wouldn't expect to become an Architect nor Dentist without years of training - why on earth would someone expect to make money in less time as a trader??

CT

 

[nunrgguy]

Yada yada yada this is an old thread. 90% lose? I thought the 'official figure, wherever that's come from is now 95%?

Question: why do people go onto trading sites and then start posting that it's fact that everyone loses, it's a zero sum game, you can't win. Are they traders? If so with that attitude they've sealed their own coffin. What is the motivation? Why bother?
Or do they and only they have some magic secret that secret that will make us all

RICH RICH RICH

BEYOND OUR WILDEST DREAMS

 

[CityTrader]

It makes sense to me that 90% of traders lose money, 5% break even and 5% make money
I have also read that only 5% of traders base their trading decisions using Money Risk Management.
I know I have tried to understand and implement and it was hard to do. I know use JBL Risk Manager and I find it of great help. It uses Static Position Sizing which optimizes my capital but controls my maximum risk which I keep to 2% but you can adjust. I suggest trial the program, you will love it!

I must be a dinosaur, I have no idea what you are talking about? you use software to tell you to limit your max position to 2% of capital? and you need to pay for something to do that?Rightooo good luck!!!