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The Main reason Why Forex Traders Fails.

horse1bun (horse1bun)
Jan 20 2012 at 04:05
70 ieraksti

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
horse1bun (horse1bun)
Jan 20 2012 at 04:17
70 ieraksti
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
Jan 20 2012 at 04:29
724 ieraksti

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.

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

horse1bun (horse1bun)
Jan 20 2012 at 04:34
70 ieraksti
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
horse1bun (horse1bun)
Jan 20 2012 at 04:41
70 ieraksti
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
horse1bun (horse1bun)
Jan 20 2012 at 04:49
70 ieraksti
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
Jan 20 2012 at 06:07
244 ieraksti

   TheCyclist posted:

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.
Jan 20 2012 at 07:28
7 ieraksti

   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 :)

Dmitriy1987 (Dmitriy1987)
Jan 20 2012 at 12:39
15 ieraksti
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!
Jan 20 2012 at 14:51
724 ieraksti
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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