90% are loser ..why ?

Ansel posted:
I find that difficult to believe. Money management will not help you if your strategy is to open a Buy trade when the wind blows east and Sell trade when the wind blows west. Strategy is critical anyone who says otherwise doesn't understand Forex

I agree.
 
Proper money management is vital to the protection of ones investment capital, but a trader has to use a solid investment strategy.

Money management should be considered just as vital to the long term success of investors as fundamental analysis and technical analysis.

Ansel posted:
I find that difficult to believe. Money management will not help you if your strategy is to open a Buy trade when the wind blows east and Sell trade when the wind blows west. Strategy is critical anyone who says otherwise doesn't understand Forex

I say it doesnt matter what strategy u use, be it fundamentals or TA. Reason why I emphasize that money management, risk management and trading psychology is because a simple strategy with a WR or 51% and RRR of 1:1, you're already profitable in the long run. But I often see many that has a trading strategy in place, full of confidence starting it out, ultimately busting their account. And the reason for it seems like its always not sticking to their plan, impatience, overleveraging etc etc. But like I said, there is more than one way to skin a cat, and everyone has their own trading style. I'm in this game for the long run and not aiming for overnight success. Good money management and trading psychology is what gives me an edge in the market over the long run. If i want fast returns, I'd rather go to the casino and do it in 1 hand.

But of course, you can't be using a losing strategy also, thats just being stupid.

Maybe so but money management is still important (or so everyone says). There are many parts to being the 10% that are successful trader. MM and strategy are some of them

I dont know why its happend with people, but i know why it was with me. I worked with Avatrade, I was bent over there for a fairly large amount, without going into details I paid for them for 2 years. Then skantaya on different brokers and at the end wandered into the info website (https://trade-reviews.top ) and learned about Capital Hall broker , for a month now everything is fine. Let's see what will happen next.

Don't blame the broker. All broker will take your money if you a trading badly. Broker provide same price data and if you guess price direction wrong then you will lose. This is what happen to 90% of trader

CheCheChe posted:
Don't blame the broker. All broker will take your money if you a trading badly. Broker provide same price data and if you guess price direction wrong then you will lose. This is what happen to 90% of trader

Most education out there for free are provided by brokers or their IB. Google ' how to trade forex ' and you'll see top searches etc are by brokers themselves. The 'education' is strategically structured in a way where it makes traders trader more often, more frequently. It's also structured for them to either break even or lose. If you understand how brokers earn money and hedge their risk, then you'll understand why profitable traders are irritating and troublesome for brokers.

Firstly brokers are 100% incentivized by volume and frequency being traded by their clients. Thats how they earn their spread / commission.

Secondly, like the title of this topic says, if 90% of retail traders lose money, and brokers have this numbers, so what do they do essentially? They take the opposite way their losing client trade.

So essentially, brokers will take the opposite side of the trade of the losing client, and run the position naked. On the other hand, brokers will also take the opposite side of the trade of a winning client, but has to run the position with hedge. At the end, losing client= commission + spread + finance turn + OTC gain. Winning client = commission + spread + finance turn

Thats how brokers earn money and thats why theres a huge conflict of interest. But you'll still have to choose one, so choose the one that is reputable and verified by the authorities. Find one that is big.. like really big, so in the case of another CHF incident, your broker won't go bankrupt.. hopefully.

Loss is an inevitable part of trading there is nobody who can avoid it completely; mostly loss occurs due to lack of exact money management plan as well non-skill trading knowledge. So, for avoiding loss we have to focus on there.

that is very true. Everyone has losses even the best pro trader have losses. Often losing months and years! Those trading equities last year had plenty of losses. Beginner focus too much on short term results and need to look more at the results over a year

90% lose because they follow signals or other people......learn to trade yourself!

jacoboh posted:

CheCheChe posted:
Don't blame the broker. All broker will take your money if you a trading badly. Broker provide same price data and if you guess price direction wrong then you will lose. This is what happen to 90% of trader

Most education out there for free are provided by brokers or their IB. Google ' how to trade forex ' and you'll see top searches etc are by brokers themselves. The 'education' is strategically structured in a way where it makes traders trader more often, more frequently. It's also structured for them to either break even or lose. If you understand how brokers earn money and hedge their risk, then you'll understand why profitable traders are irritating and troublesome for brokers.

Firstly brokers are 100% incentivized by volume and frequency being traded by their clients. Thats how they earn their spread / commission.

Secondly, like the title of this topic says, if 90% of retail traders lose money, and brokers have this numbers, so what do they do essentially? They take the opposite way their losing client trade.

So essentially, brokers will take the opposite side of the trade of the losing client, and run the position naked. On the other hand, brokers will also take the opposite side of the trade of a winning client, but has to run the position with hedge. At the end, losing client= commission + spread + finance turn + OTC gain. Winning client = commission + spread + finance turn

Thats how brokers earn money and thats why theres a huge conflict of interest. But you'll still have to choose one, so choose the one that is reputable and verified by the authorities. Find one that is big.. like really big, so in the case of another CHF incident, your broker won't go bankrupt.. hopefully.

That might apply to market makers
But true ECN broker profit as you profit and your trades gets bigger.

Only good trading knowledge cannot brings profit regularly. Besides trading knowledge you have to focus on money and risk management which is the key to success in Forex trading.

90% are loser ..why ?

Because of EA's and indicators.

Indicators and expert advisors have become a complete market area. Coders make robots and indicators, often without knowing how to trade. For this reason, robots are often built on money management only and trade entrys are bad...

Everyone knows how the web is full of different robots. Some coder has made some very simple ea or indicator that he sells forward and earns his money.

And I do not claim that something ea would be good, but it is harder to find one. The coder is a rather common skill today.

jacoboh posted:

CheCheChe posted:
Don't blame the broker. All broker will take your money if you a trading badly. Broker provide same price data and if you guess price direction wrong then you will lose. This is what happen to 90% of trader

Most education out there for free are provided by brokers or their IB. Google ' how to trade forex ' and you'll see top searches etc are by brokers themselves. The 'education' is strategically structured in a way where it makes traders trader more often, more frequently. It's also structured for them to either break even or lose. If you understand how brokers earn money and hedge their risk, then you'll understand why profitable traders are irritating and troublesome for brokers.

Firstly brokers are 100% incentivized by volume and frequency being traded by their clients. Thats how they earn their spread / commission.

Secondly, like the title of this topic says, if 90% of retail traders lose money, and brokers have this numbers, so what do they do essentially? They take the opposite way their losing client trade.

So essentially, brokers will take the opposite side of the trade of the losing client, and run the position naked. On the other hand, brokers will also take the opposite side of the trade of a winning client, but has to run the position with hedge. At the end, losing client= commission + spread + finance turn + OTC gain. Winning client = commission + spread + finance turn

Thats how brokers earn money and thats why theres a huge conflict of interest. But you'll still have to choose one, so choose the one that is reputable and verified by the authorities. Find one that is big.. like really big, so in the case of another CHF incident, your broker won't go bankrupt.. hopefully.

Someone watched the Anton Kreil presentation about the topic... :)
Really good one thouogh

Capitalinvestfx posted:
because there is good traders and bad traders,bad traders are slow learners ,indiciplined ,greedy and on ...

i was a bad trader on my first attempt at it, i got impatient, greedy and undisciplined, ended up loosing money and giving up. i am hoping to learn a better mind set this time round.

tjat posted:
90% are loser ..why ?

Because of EA's and indicators.

Indicators and expert advisors have become a complete market area. Coders make robots and indicators, often without knowing how to trade. For this reason, robots are often built on money management only and trade entrys are bad...

Everyone knows how the web is full of different robots. Some coder has made some very simple ea or indicator that he sells forward and earns his money.

And I do not claim that something ea would be good, but it is harder to find one. The coder is a rather common skill today.

Nope.
The basic is to have good trading plan.
Trading plan can be executed better by EA than you.

Buying some shit in hope to get easy profit is not fault of that EA but of the user's expectations.

What would you include in a trading plan?

In my opinion, 3 the most important things in forex trading are:
1. Proper money management
Instead of putting big position with small stop -> small position with big stop loss equal to % of balance that you can afford to lose, e.g. 1000$ balance = 0.01 with 100 pips per trade. Think about your Stop Loss as a tool to protect you capital! Also the way you realize your profits is important. You should not expect to much profits on each transaction. Once I've heard to get profits as often as it's possible and sometimes hit the Stop Loss and you should be okay in the long-term :).

2. Trading with long-term trend and knowing the short-term trend
Put 100 or 120 period Moving Average on the chart and 10/20 period Moving Average to see the short-term trend that you can you to do get your advantage.


3. Focusing on one currency pair and get confidence to trade it.
E.g. I trade only EUR/USD pair because IMO it's the easiest currency pair. it's the most liquid pair and quite predictable.


Sorry for bad English, hope I helped someone in the trading, good luck & big profits!

vedranm posted:
What would you include in a trading plan?

that is actually pretty easy
1. When to open trade (usually when you see your trading pattern, whatever it is)
2. When to exit trade (end of bar, take profit, stop loss)
3. Risk mgmt - trade size, margin used, equity protection

Admoni posted:
Almost 90% beginners are loser from this trading place due to only lack of most accurate money management plan, basically they only emphasis on acquiring good trading knowledge and always ignore other inevitable parts . as a result they become loser. So besides good trading knowledge we the beginners have to ensure how to manage money in Forex.

True to an extent, but in reality, you can't expect to jump onto charts and take a gamble on a pattern - hour always wins. You should only ever trade when you KNOW what you are trading . Example... Today I shorted the GBPUSD for an easy 30 pips. And I chose that pair before loading up charts.

Today I shorted GBPUSD

GBP - Brexit Fear / Poor Data
USD - Good data
GBPUSD SHORT

Yesterday I shorted the EURCAD.

EUR - Was bearish because of German and Italian pressure.
CAD - Was strong due to employment data and crude oil prices.
So it was an easy logical choice - EURCAD Short.

Honestly psychology, leverage, consistency, they all play a part, but the biggest part is played when it comes to investing and not throwing your money into RED/BLACK rules, because lets face it - what happened on a chart last week will not have a bearing on what the economy does and it is economy that drives the markets!

And that is the difference between pro thinking and retail trader thinking.

Hope it helps someone .