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Why Forex Traders are losing ?

thirdbrainsa (thirdbrainsa)
Jul 18 2018 at 11:07
43 posts
An Equation i like :

Success = Your Winning Rate (%) * The Average $$$ you gain by trades - Your Loosing Trade (%) * The Average $$$ you lose by trades

If you can have Success > 0 , you are OK and your strategy is working...

Clever and Smart Trading
LongVision
Jul 19 2018 at 07:09
254 posts
Trading is long term game. Patience and staying for longer periods is more important than any trading strategy. These two things only achieve when you trade low risk and keep your drawdown below 20%. Most people use high leverage trading to maximize their profits but they do nothing to limit there drawdown. Now what happens after blowing there account they blame trading strategy for there loss but actual reason is high risk not trading strategy. Next they search for an other trading strategy and this cycle goes on until they quit trading or understand importance of low risk and patience in trading.

The market will trade through it’s path of least resistance .
LongVision
Jul 19 2018 at 07:11
254 posts
thirdbrainsa posted:
By default, Forex Market is more predictable than the classic stock market

I beg to differ but I believe stock market is more predictable then forex market following are my argument for that

1.Forex market is rangebound market because forex pairs can't go beyond certain price.
2.EUR/USD reached an all time high of 1.87 and a record low of 0.70 this is very narrow range
3. But for stock market sky is only limit.
4.Over 90 years, the S&P 500 went up 66 years and went down 24 years.
5. S&P change from 250 to 2800 so More then 1000% growth.

The market will trade through it’s path of least resistance .
Adribaasmet
Jul 19 2018 at 07:59
947 posts
thirdbrainsa posted:
An Equation i like :

Success = Your Winning Rate (%) * The Average $$$ you gain by trades - Your Loosing Trade (%) * The Average $$$ you lose by trades

If you can have Success > 0 , you are OK and your strategy is working...


Actually, trading strategy is a big parameter here! On the other hand, trader should follow the rules of discipline; that’s the importance of having a trading plan.

thirdbrainsa (thirdbrainsa)
Jul 19 2018 at 08:32
43 posts
LongVision posted:
thirdbrainsa posted:
By default, Forex Market is more predictable than the classic stock market

I beg to differ but I believe stock market is more predictable then forex market following are my argument for that

1.Forex market is rangebound market because forex pairs can't go beyond certain price.
2.EUR/USD reached an all time high of 1.87 and a record low of 0.70 this is very narrow range
3. But for stock market sky is only limit.
4.Over 90 years, the S&P 500 went up 66 years and went down 24 years.
5. S&P change from 250 to 2800 so More then 1000% growth.


You right.

I did not explain correctly what i was thinking. 'Predictable' is not the term. Forex Market is less volatile then Stock Market then easier to forecast with technical analysis.

For Stock Market, you are right and when you know the company, who is managing it, the product ect.. you could have better insight and better investment on it than in Forex...where you control nothing and where fundamentals are not so clear.

Clever and Smart Trading
thirdbrainsa (thirdbrainsa)
Jul 19 2018 at 08:33
43 posts
Adribaasmet posted:
thirdbrainsa posted:
An Equation i like :

Success = Your Winning Rate (%) * The Average $$$ you gain by trades - Your Loosing Trade (%) * The Average $$$ you lose by trades

If you can have Success > 0 , you are OK and your strategy is working...


Actually, trading strategy is a big parameter here! On the other hand, trader should follow the rules of discipline; that’s the importance of having a trading plan.


Yes. The equation is here to tell you if your trading strategy is right or not (in my opinion) after a while (3 - 6 months) and enough trades to have a statistical value.

Clever and Smart Trading
lucywarren
Jul 22 2018 at 05:52
9 posts
Adribaasmet posted:
thirdbrainsa posted:
An Equation i like :

Success = Your Winning Rate (%) * The Average $$$ you gain by trades - Your Loosing Trade (%) * The Average $$$ you lose by trades

If you can have Success > 0 , you are OK and your strategy is working...


Actually, trading strategy is a big parameter here! On the other hand, trader should follow the rules of discipline; that’s the importance of having a trading plan.
Right! The purpose of having a trading plan/strategy is not just for the sake of it. It needs to be followed with discipline and dedication.

Adribaasmet
Jul 29 2018 at 06:01
947 posts
lucywarren posted:
Adribaasmet posted:
thirdbrainsa posted:
An Equation i like :

Success = Your Winning Rate (%) * The Average $$$ you gain by trades - Your Loosing Trade (%) * The Average $$$ you lose by trades

If you can have Success > 0 , you are OK and your strategy is working...


Actually, trading strategy is a big parameter here! On the other hand, trader should follow the rules of discipline; that’s the importance of having a trading plan.
Right! The purpose of having a trading plan/strategy is not just for the sake of it. It needs to be followed with discipline and dedication.


Thank you very much for your reply; but initially I was unable to follow my trading plan so honestly! I think, it takes time to absorb.

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