Mistakes make losing traders

foroom lluzers

Veteren member
3,611 135
The average person will never achieve anywhere near the expected return from their system because they make mistakes.In fact they will lose money .The difference between expected profits and actual losses ,is the result of mistakes .Mistakes profit gap.

Blunder
Fault
Gaffe
Inaccuracy
Lapse
Miscalculation
Misconception
Misstep

In trading you start with 50/50 , deduct spread of broker , this brings edge to -2 , equals 49/51 in favour of forex casino operators.The calculated risks are :traders make mistakes and underperform , traders can not execute the 49% , so they underperform on real accounts , they have no edge , so it is gambling and they lose.

Back tests , systems , methods and hindsight results will show great profits , but if you can' t execute your systems / methods in real markets , you will make losses.

The best thing to search hard on the internet is for trader's mistakes , trading mistakes trading errors , top trading mistakes videos /pdf.Traders will learn a lot.

There are many different types of errors , in some cases over 100 of them .There are execution errors , psycholoigical errors , system errors , human errors , information processing errors , software errors , market timing errors and may other mistakes

The best way to reduce mistakes is to look for set and forget strategies or devise them

There are over 50 psychological errors/mistakes .....just search on the internet.

http://www.trade2win.com/boards/psychology-risk-money-management/223388-rewire-brain-trading-perfection.html

http://www.trade2win.com/boards/psychology-risk-money-management/223300-mind-traps-affecting-traders.html

http://www.trade2win.com/boards/educational-resources/18073-top-10-mistakes-traders-make-how-avoid-them.html
 

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seekingTruth16

Active member
149 24
Execution mistakes can be helped by automation. There will be bugs in that too initially, but over time you can reduce them, until there are few or no mistakes. But you still end up back at the 49/51, overcome the costs of trading situation. So all this talk about mistakes and psychology, is true and good and helpful, but you still end up back with - do you have a method with an edge?

On the other hand, if there existed a huge edge, where you would win 80% of your trades at risk reward 1:1, would there even be a psychological problem? I think probably not. So which is more important? The edge or the ability to avoid mistakes? After all, most won't have any edge, so a 'mistake' doesn't even make sense. If it's just flipping coins, to lose is not really a mistake. The only mistake is playing.
 

foroom lluzers

Veteren member
3,611 135
Execution mistakes can be helped by automation. There will be bugs in that too initially, but over time you can reduce them, until there are few or no mistakes. But you still end up back at the 49/51, overcome the costs of trading situation. So all this talk about mistakes and psychology, is true and good and helpful, but you still end up back with - do you have a method with an edge?

On the other hand, if there existed a huge edge, where you would win 80% of your trades at risk reward 1:1, would there even be a psychological problem? I think probably not. So which is more important? The edge or the ability to avoid mistakes? After all, most won't have any edge, so a 'mistake' doesn't even make sense. If it's just flipping coins, to lose is not really a mistake. The only mistake is playing.
Automation will only work with trade management , but you may be able to automate with interactive brokers , the stock market method below.

If there was a huge edge , it could eliminate mistakes , but there are not huge edges .To trade huge personal psyche edges would conflict with mind traps and psychology.


There a method with an edge.Even if I handed it for free on a plate , you couldn't eat the edge , it is so easy!

http://www.trade2win.com/boards/indices/223440-edge-set-forget-indices-trading.html#post2900716


http://www.trade2win.com/boards/general-trading-chat/223414-what-professionals-edge.html
 
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foroom lluzers

Veteren member
3,611 135
You probably HATE to make mistakes. When you have high expectations for your performance, it makes it hard to stay composed.

Your competitive drive pushes you to further develop your physical and technical ability. However, some traders who maintain extremely high expectations are prone to become frustrated and dwell on their mistakes.

You might dwell on mistakes and beat yourself up for missing a break out . The downward spiral of one mistake leading to another, and another, is all too common.

Some try to AVOID making mistakes. You might worry about letting yourself down if you make a mistake. Trying to avoid mistakes will keep you from taking risks and cause you to play “safe”, which often leads to more mistakes.

You will experience frustration , anger , boredoom , anxity and stress.
 

foroom lluzers

Veteren member
3,611 135
Here is an example who makes mistakes , he does not follow his system.He traded his emotions and most traders trade their emotions .Orignal trend trader Dennis was caught not following his rules.

sometimes i wait and wait and wait wait wait wait, wait some more then i go f^ck it. i'm in. i'm going to take a shot.
Imaptience , you traded your emotions , you did not trade systems

Most traders can't follow systems

https://www.google.co.uk/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=free+trading+systems

3,000 free systems on the internet.
 

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