Why Forex Traders are losing ?

By default, Forex Market is more predictable than the classic stock market but statistics shows us that the majority of forex traders are losing.

Why ?

What are, for you, reasons for that ?

For me, i would say that the first reason is a bad money management system with low deposit account with high risk in any trade to try to make a 'coup' each time people play....

I figure out also very big differences between results if you pick 2 differents brokers with the same strategy used....

to get rich quickly 😂

Narul EJ : than 'greed' is the second ennemy for traders with the fear to loose...

Because they ignore fundamentals and focus on technical only

ChristianWay posted:
Because they ignore fundamentals and focus on technical only

But all is in the price no ? in the charts ?

How fundamentals can bring short-term success ? Do the trader doesn't want to gain money only in short-term ?

How do you include fundamental in the way you are trading ?

ChristianWay posted:
Because they ignore fundamentals and focus on technical only

Fundamentals have no meaning in daytrading forex. And long term trading is pointless due to swaps. Holding EU longs can kill your account simply due to negative swaps, even if price doesn't change in months.

I think one has to be emotionally strong, analytic, and visual. For me the biggest reason for the losses is the inability to transform the mode of trading from the trend trading approach to the ranging market conditions. In my opinion it is probably a lie that one should focus on the higher time frames.

There are a lot of minor things that one should take into consideration. Those things can be learned only by trial and error and/or by having a good coach.

Trading can be purely technical and be profitable. Avoid trading during high risk news events.

One should begin with a demo account or with a very small real money lot size.

Just my opinion. Losses are unavoidable at learning phase.

How many doctors are there in the world? Are there more doctors in the world or more successful (consistently profitable over the long term) successful traders? My bet is that there are more doctors.

To be a doctor requires many years of schooling where there is a weeding out process. There is a regimented training program and testing process. With trading, any fool with some money in their pocket can open a trading account and lose it.

Most people lose money trading markets because they have no idea what they are doing. There is no real formal training program for the markets like there is to be a doctor, lawyer or any other sort of professional. From start to finish it might take 7 years to be a practicing lawyer including a bachelors degree. How many have put 7 years of that kind of effort into trading? Those that have are probably consistently profitable or very close to it.

ChristianWay posted:
Because they ignore fundamentals and focus on technical only

I agree with you on this point.
But there might be some other reasons as well.

thirdbrainsa posted:
By default, Forex Market is more predictable than the classic stock market but statistics shows us that the majority of forex traders are losing.

Why ?

What are, for you, reasons for that ?

For me, i would say that the first reason is a bad money management system with low deposit account with high risk in any trade to try to make a 'coup' each time people play....

I figure out also very big differences between results if you pick 2 differents brokers with the same strategy used....

No doubt, money management is an important issue; but the main problem is lack of trading knowledge! In addition, almost all of new traders are too hurry, that is another reason.

Adribaasmet posted:

thirdbrainsa posted:
By default, Forex Market is more predictable than the classic stock market but statistics shows us that the majority of forex traders are losing.

Why ?

What are, for you, reasons for that ?

For me, i would say that the first reason is a bad money management system with low deposit account with high risk in any trade to try to make a 'coup' each time people play....

I figure out also very big differences between results if you pick 2 differents brokers with the same strategy used....

No doubt, money management is an important issue; but the main problem is lack of trading knowledge! In addition, almost all of new traders are too hurry, that is another reason.

During years and years, majority of brokers was chasing beginners with publicity 'become millionnaire in 2 days with 100 USD' because they were B-BOOK 'pure' player , they never sent your trades to market and you was playing against them finally.....

Less the tools was efficient, better the profit was good for theses brokers

In our days, traders became more educated then majority of brokers switch to a A-BOOK system or Hybrid one (A or B depending on what instrument).

mmltd posted:

ChristianWay posted:
Because they ignore fundamentals and focus on technical only

Fundamentals have no meaning in daytrading forex. And long term trading is pointless due to swaps. Holding EU longs can kill your account simply due to negative swaps, even if price doesn't change in months.

I agree with this one. Correct me if I'm wrong, but I think that one needs to scale down lot size considerably if one is trading on long term. That means that the profitability decreases, and variance increases. Also, building a trading account takes longer.

In addition, I like it low variance, which implies that winrate should be higher and keeping the holding time short (intraday trades, that is).

Besides, trading long term is like leaving money on the table.

Nah, all talk about money management, but once ESMA applied, all disagree. 😂

niceGLer posted:

mmltd posted:

ChristianWay posted:
Because they ignore fundamentals and focus on technical only

Fundamentals have no meaning in daytrading forex. And long term trading is pointless due to swaps. Holding EU longs can kill your account simply due to negative swaps, even if price doesn't change in months.

I agree with this one. Correct me if I'm wrong, but I think that one needs to scale down lot size considerably if one is trading on long term. That means that the profitability decreases, and variance increases. Also, building a trading account takes longer.

In addition, I like it low variance, which implies that winrate should be higher and keeping the holding time short (intraday trades, that is).

Besides, trading long term is like leaving money on the table.

Do we have statistics or studies about the 'long-term trading' value ? indeed, you need to do a two digit by year to justify more or less the risk you take...a 6% you can have it easily by investing in real restate, why risking money then in Trading ?

I do not have any numbers to show.off. If one has a huge pile of money to invest then by all means go for investing real estate, farming or, dividends. I would do that. But unless one already has a fortune then it goes down to the percentage game, and by accumulating roll by small absolute increments. Of course one should not forget the money management!

Somebody made a remark about ESMA. I would go for a broker that allows nonstandard lot sizes and try with that - thats what I am going for. I rarely use leverage greater than 10, anyways.

I'm still learning.

so, do you have more tips about fund management?

Last week; I lost almost 85 pips on EUR/USD although my strategy provides overall 75% success ratio. That’s the reality of Forex; there is nothing like 100% here.

Adribaasmet posted:
Last week; I lost almost 85 pips on EUR/USD although my strategy provides overall 75% success ratio. That’s the reality of Forex; there is nothing like 100% here.

Sorry for your losses, but you are right that is the reality of Forex. You can never be sure about your decisions even after having experience of multiple years.

just 85 pips does not matter. How many % you loss is more important. if 85 pips you loss equal to 50%, then you need to learn why Forex traders still losing.