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The Main reason Why Forex Traders Fails.

Ezekiel Chew (asiaforexmentor1)
Jan 19 2012 at 09:46
posts 24
Forex Trading Psychology – The Main reason Why Forex Traders Fail


Forex Trading Psychology
There are many answers in the market to this question: Why do most forex traders fail?
- Some blame it on over trading
- Some blame it on emotions
- Some blame it on revenge mentality
- Some blame it on impulse
- Some blame it on the market
- Some blame it on bad luck
- Some blame it on poor entry
- Some blame it on not taking profits
- etc etc etc
As you can see, there will be tons and tons of reasons that explains why forex traders fail.
This is all that relates to forex trading psychology.
But i strongly believe that it all leads to one answer.
MONEY
Forex Trading Psychology – The Main reason Why Forex Traders Fail

Yes, the answer is MONEY.
The main reason why most traders fail is because of money.
No doubt that we all trade forex for the money.
But it will be the money that kills us in forex.
Forex trading psychology – Let me explain.
To us our money that we put in our forex capital is our hard earn money. Who isn’t?
when we have that mentality that we CANNOT lose the money in our capital.
And as all man are greedy. We want to multiply our capital FAST.
That’s when we lose it all.
To succeed in forex trading, we have to FORGET that there’s money involved.
You have to learn to trade not because of the money. But because you like forex trading and you are passionate about it.
You have to learn to trade right and not trade for the money.
When you trade right and forget about the money, the money will come naturally.
But when you are too focused on the money, all your emotions will trigger.
You will get into impulse trades, probably because you made a lost on the last trade and you want your money back.
Or because you look at the trade and you are so confident about it, you GAMBLED your whole account size on that trade. and to lose it all.
Or because you want to feel good and look good, and you think that you are able to double your account in a week. So you take trades that are way beyond your money management risk %.
Or you made a series of losses, and you think that if you increase your risk percentage on this particular trade, you will make back your losses.
And the list goes on…
FOREX TRADING PSYCHOLOGY – The Main reason Why Forex Traders Fail

All the above reasons leads to the main answer. MONEY.
If we are not trading for the money, but if we just want to focus on mastering our trading and trading it right.
There will no longer be any emotions in place.
I highly recommend traders to forget about the money in forex.
Trade with your forex trading system and stick to it with discipline. Focus on trading right.
It is even better if you can cover up the money part on your forex broker screen. Ignore how much has your account size grown or how much have you lose.
When you are able to do that, you will then see the big picture and you will be more analytical on your forex trades.
So the next time someone ask you on – what is the main reason forex traders fail.
You know your answer: MONEY
This is Forex Trading Psychology at its fullest!
This is the main reason why most traders fail.
Ezekiel Chew
Asia #1 Forex Mentor

PipGnostic
TheCyclist
Jan 19 2012 at 13:03
posts 724
What a load of dwang.

People fail at forex because they have no idea what's going on in their portfolio's. Simple as that.

You can thank Metatrader for that.


PipGnostic
TheCyclist
Jan 19 2012 at 14:51
posts 724
I certainly hope you're not Asia's #1 mentor or Asia is stuffed.

7forex
Jan 19 2012 at 17:52
posts 56

   asiaforexmentor1 posted:
   Forex Trading Psychology – The Main reason Why Forex Traders Fail


Forex Trading Psychology
There are many answers in the market to this question: Why do most forex traders fail?
- Some blame it on over trading
- Some blame it on emotions
- Some blame it on revenge mentality
- Some blame it on impulse
- Some blame it on the market
- Some blame it on bad luck
- Some blame it on poor entry
- Some blame it on not taking profits
- etc etc etc
As you can see, there will be tons and tons of reasons that explains why forex traders fail.
This is all that relates to forex trading psychology.
But i strongly believe that it all leads to one answer.
MONEY
Forex Trading Psychology – The Main reason Why Forex Traders Fail

Yes, the answer is MONEY.
The main reason why most traders fail is because of money.
No doubt that we all trade forex for the money.
But it will be the money that kills us in forex.
Forex trading psychology – Let me explain.
To us our money that we put in our forex capital is our hard earn money. Who isn’t?
when we have that mentality that we CANNOT lose the money in our capital.
And as all man are greedy. We want to multiply our capital FAST.
That’s when we lose it all.
To succeed in forex trading, we have to FORGET that there’s money involved.
You have to learn to trade not because of the money. But because you like forex trading and you are passionate about it.
You have to learn to trade right and not trade for the money.
When you trade right and forget about the money, the money will come naturally.
But when you are too focused on the money, all your emotions will trigger.
You will get into impulse trades, probably because you made a lost on the last trade and you want your money back.
Or because you look at the trade and you are so confident about it, you GAMBLED your whole account size on that trade. and to lose it all.
Or because you want to feel good and look good, and you think that you are able to double your account in a week. So you take trades that are way beyond your money management risk %.
Or you made a series of losses, and you think that if you increase your risk percentage on this particular trade, you will make back your losses.
And the list goes on…
FOREX TRADING PSYCHOLOGY – The Main reason Why Forex Traders Fail

All the above reasons leads to the main answer. MONEY.
If we are not trading for the money, but if we just want to focus on mastering our trading and trading it right.
There will no longer be any emotions in place.
I highly recommend traders to forget about the money in forex.
Trade with your forex trading system and stick to it with discipline. Focus on trading right.
It is even better if you can cover up the money part on your forex broker screen. Ignore how much has your account size grown or how much have you lose.
When you are able to do that, you will then see the big picture and you will be more analytical on your forex trades.
So the next time someone ask you on – what is the main reason forex traders fail.
You know your answer: MONEY
This is Forex Trading Psychology at its fullest!
This is the main reason why most traders fail.
Ezekiel Chew
Asia #1 Forex Mentor


Yes, I think psychology is the most important aspects in forex trading and I agree money is the main reason for trading emotionally.

Per your recommendation that is to 'forget about the money', can you also suggest how to do that? I believe most traders know we need to not thinking about money but just don't know how.

Looking forward to your advises.

I love taking risk with the right returns.
Raiden
Jan 19 2012 at 18:39
posts 244

   TheCyclist posted:
   I certainly hope you're not Asia's #1 mentor or Asia is stuffed.


Ouch... while there are a lot of forex trainers in Singapore, not many have the stones to come to a trade publishing website to post. Let's give him the benefit of the doubt and see his statements of success that credit his authority to coach.

Of course, when I say statements, I mean trade statements. You never know, he could have a kick-ass strategy.


Consistency above all.
PipGnostic
TheCyclist
Jan 20 2012 at 00:51
posts 724
Raiden,

I learned long time ago, anyone who can trade will know psychology, fear, greed and discipline doesn't matter. So you don't need to forget the money. There is no mindset that changes the result of your trading.

If you know what you're doing the knowledge you have simply makes those thing disappear. I know at any given moment I know exactly what values the positions in my portfolio should be at. There's no emotions or other weird and wonderful concepts involved. Ever. It should be x , it is now y, make the adjustment. Simple as that. Ok, so I'm to lazy to do it myself and the computer does it for me, but that's another story.

If a wannabe mentor starts with that bullshit, then you can know:

 1. He is not making enough money from his own trading, that's why has to mentor.
 2. He clearly doesn't have the knowledge to mentor.

The reason why people fail in forex is because 99% of traders can't work out the value of the assets in their portfolio and I'll bet you neither can Mr. Asian mentor here.

Actually really pee's on my battery that people who don't know what they're doing go ruin other peoples trading careers. Bruce Margolese in particular comes to mind. He tried his magic here and lucky gave up before he could cause anymore harm.

PipGnostic
TheCyclist
Jan 20 2012 at 01:37
posts 724
What a guy like this will do is take some poor wretch down exactly the wrong road for years, a successful student won't have to pay for lessons anymore !

I promise you the hedge funds isn't worrying about abstract concepts like mind sets, they're doing math. So unless Asia's nr 1 mentor start putting down math in his next 3 sentences I strongly suggest moving along.

Raiden
Jan 20 2012 at 03:24
posts 244
Well, I guess the proof of the pudding is in the eating. If he shows positive trading statements, it doesn't matter if his ideas do not line up with yours or even the consensus of trading professionals. If they work, they work.

We'll just have to wait and see what he uploads. As mentioned, he's got stones coming here and I'm sure he wouldn't want to disappoint.

Consistency above all.
PipGnostic
TheCyclist
Jan 20 2012 at 03:47
posts 724
Raiden,

Mentoring can cause tremendous harm to someone's fx career to the point where it can end it.

Mindset? When you get the margin call does one then not get upset because it was a bunch of figures on a computer screen? Your wife is going to be upset, that I promise, can tell you exactly what her mindset is going to be. Bank manager is going to share that mindset.

Successful traders are either busy people (busy trading), or they are at the beach. They don't mentor. Mentors mentor. They make money selling time. Time that could have spent trading or playing. Kind of an obvious conflict of interest there.

PipGnostic
TheCyclist
Jan 20 2012 at 03:52
posts 724
Same story with the prediction business. Entire careers and companies revolve around it. It's not necessary to predict to make money, the process is fundamentally flawed. Yet people make millions if not billions from it. Read Nicholas Taleb's Black Swan for a detailed explanation.

Couple of years ago a company called Investec started dressing a guy in monkey suit, who then throws darts at the stocks in the newspaper to chose a portfolio. The monkey does better practically every year than the highly paid highly educated fund managers, and mentoring is just an extension of that.

Basically the fact that this guy wants to teach that a fundamentally flawed concept can be corrected with a state of mind tells me he doesn't understand it. No state of mind is going to work.

Del (horse1bun)
Jan 20 2012 at 04:05
posts 70

Ezekiel Chew said:
'
Trade with your forex trading system and stick to it with discipline. Focus on trading right.
'

That's good advice, the rest sir, I would save for your diary, just my opinion, but you have the right to post here in case it helps somebody. But, like whatshisname said, some traders may not always benefit from believing every single thing they read on a site like this.

Therefore, in order to balance the topics, we reserve the right to chime in and give constructive criticism that may sound critical of you or your systems, but please don't take it personally.

go with the flow; just be on the right end of the wave
Del (horse1bun)
Jan 20 2012 at 04:17
posts 70
Furthermore, I am skeptical of the fact that you believe that most traders fail and that there is a perpetuated idea that most traders fail, maybe in your circle and maybe with some people you know, and it's a stretch to say maybe some of your students have made performances that you considered a 'failure'.

In conclusion, perhaps it is your lack of discernment as to what qualifies someone to be termed a 'trader', and likewise, a 'failure'.
What time frame are we looking at here and what type of trader?

go with the flow; just be on the right end of the wave
PipGnostic
TheCyclist
Jan 20 2012 at 04:29
posts 724
Del

The figures for failure is published. Oanda has the best retention rate of 50% of clients. Average broker loses 70% of their clients in the first year, the rest will most likely fail in the following year. Very few accounts survive forex.

https://forexmagnates.com/us-forex-brokers-profitability-report-for-q3-2011-oanda-back-on-top-profitability-up/

Look at the second quarter figures, highest was 4.5%. Only 4.5% of Oanda's clients managed to turn a profit.


Del (horse1bun)
Jan 20 2012 at 04:34
posts 70
yes, thank you and I am aware of those statistics, but I don't believe that's the end all measurement of trader success. Yes a large portion of these 108,000 accounts, (a small sample?) will not prove themselves to be actual traders, imo. that's all i'm saying

go with the flow; just be on the right end of the wave
Del (horse1bun)
Jan 20 2012 at 04:41
posts 70
and not only that, I consider those brokers to be awful in general. The best brokers are overseas, and the smartest clients are at the best brokers, Oanda is about the only broker available to US clients that has decent retail client functionality, thus the success... If we are counting all the people who misunderstood 'forex' and lost their shirt or their farm, as traders, really we are doing a disservice to those who are real traders by lumping them in with those newbies that banks want to push over a cliff to feed the fire, 'liquidity' etc... again just my opinions
but I'm not the one here claiming to be a mentor to traders, who is in fact more likely someone just trying to make a buck at the expense of those uninformed people losing their money, then at the end saying, 'hey it's not my fault most people lose, it's YOUR FAULT,' and therefore take no responsibility for how your students go on to trying to become trader's because your feeding them this line of malarky and not teaching them real specific things about trading, just general doctor-phil style pseudo-lingo.

go with the flow; just be on the right end of the wave
Del (horse1bun)
Jan 20 2012 at 04:49
posts 70
Wise people can read and understand a risk disclaimer, fools will ignore them. ever made one of your classes read a full forex risk disclosure statement, out loud, and then discussing maybe what this means? I bet you have not.

go with the flow; just be on the right end of the wave
Raiden
Jan 20 2012 at 06:07
posts 244

   TheCyclist posted:
   Raiden,

Mentoring can cause tremendous harm to someone's fx career to the point where it can end it.

Mindset? When you get the margin call does one then not get upset because it was a bunch of figures on a computer screen? Your wife is going to be upset, that I promise, can tell you exactly what her mindset is going to be. Bank manager is going to share that mindset.

Successful traders are either busy people (busy trading), or they are at the beach. They don't mentor. Mentors mentor. They make money selling time. Time that could have spent trading or playing. Kind of an obvious conflict of interest there.


Re-reading Ezekiel's post on why most forex traders fail is because they think about the money involved, does come across as a little insipid. However, let him have the opportunity to show what he says does contribute to a good trading psychology and hence successful performance.

I understand your gripes about his implied offering of mentorship, but let his record speak for itself if and when he uploads it. I would be interested to see it. There is always something to be learnt from good performers.

Consistency above all.
yg10
Jan 20 2012 at 07:28
posts 7

   7forex posted:

Yes, I think psychology is the most important aspects in forex trading and I agree money is the main reason for trading emotionally.

Per your recommendation that is to 'forget about the money', can you also suggest how to do that? I believe most traders know we need to not thinking about money but just don't know how.

Looking forward to your advises.


Close your P/L window. Concentrate on PA/trend lines/levels/indicators - whatever you use. Keep analyzing and reacting.

Oh, it is much easier to say this than to execute :)

Dmitriy Filimonov (Dmitriy1987)
Jan 20 2012 at 12:39
posts 15
Can PAMM reduce risks any how? I mean, if you are a newbie trader - is it the best variant to make your first steps in Forex trading? (excepting Demos)

Less talking, more business!
PipGnostic
TheCyclist
Jan 20 2012 at 14:51
posts 724
I've always said the biggest mistake I made in fx was not to hedge my learning curve. By that I mean get a PAMM account when I started.

But 99% of the PAMM accounts are also in a severe conflict of interest. Inside spread payments means the trader doesn't really have to make a profit to make money, he just has to churn through your account and the broker pays him. Easy to make $10k a month while knowing up front you're going to lose the money. Lot of the accounts here do exactly that.

Over and above that there are some honest guys who do really try and do the honest thing, most of them won't make it. Very, very few people can trade fx consistently good and you need very specific systems for that. Again 99% of what you find here just don't cut it.

So you have to be very, very careful. On this entire forum there is one person I would consider allocating money to and that will be with Oanda where there is no turnover incentive. The account has to be profitable for the trader to make money.

And remember if it's to good to be true, it is.

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