90% are loser ..why ?

yellowman94 posted:

togr posted:

AkbarM posted:
it frustrates me when people say that most people lose due to emotions etc. It is because they don't have a good strategy and it is near impossible to find one online. Any trader with good strategy would make money and wouldn't need to worry about emotions

These are 2 different things
1. Have a great trading plan
2. Execute such plan flawlessly

Just a few human beings can execute the plan 100% correct.
It is much easier, cheaper and more consistent to use EAs.

agreed!

Very true!

EAs are very consistent in producing losses!!! But if you want to make profit from Forex trading you will need to trade manually. I have yet to find an EA that works longer than a couple of weeks. Most destroyed my account

Gasley posted:
EAs are very consistent in producing losses!!! But if you want to make profit from Forex trading you will need to trade manually. I have yet to find an EA that works longer than a couple of weeks. Most destroyed my account

That is not true.
These are 2 different things
1. Have a great trading plan
2. Execute such plan flawlessly

Just a few human beings can execute the plan 100% correct.
It is much easier, cheaper and more consistent to use EAs.

Gasley posted:
EAs are very consistent in producing losses!!! But if you want to make profit from Forex trading you will need to trade manually.

The EA is only as good as the strategic capabilities that it is programmed to understand.

If the EA is designed to watch for moving average cross overs, then that is all it is going to do.
It won't know to watch for stochastic values, or candle patters, or whatever else you want to use in your strategy.

An EA just removes the emotional decisions from the situation, and trades according to whatever guidelines and rules you provide it.

If a trader is manually trading a strategy which is profitable across a wide range of market conditions, then it would be reasonable to consider that an automated system using the same strategy would also be profitable, providing of course the market conditions have remained the same.

Gasley posted:
I have yet to find an EA that works longer than a couple of weeks. Most destroyed my account

Did you create the EA yourself to accurately model and replicate your profitable strategy? Or did you just download an EA from someplace and expect it to be profitable for you?

Gasley posted:
EAs are very consistent in producing losses!!! But if you want to make profit from Forex trading you will need to trade manually. I have yet to find an EA that works longer than a couple of weeks. Most destroyed my account

You must look deeper and deeper for good EAs, I have 4 good ones myself. Money management and diversification is also important with your EAs, don't put all your money on 1 system.

You can also use Martingale or Grid system to grab profits on the Forex market. These systems are made to blow up one day or another if you are greedy or if they are used with high volatility pairs. I use 1 Martingale and 1 Grid system on low volatility pairs and I the further I went was over 800% before blowing up the account. If you withdraw profits constantly it makes you a winner.

To get back to the main topic, 90% are losers because they don't have enough money involved to split their investment in at least 5 accounts.

I am not convinced that martingale and grid system are good. There is no way of knowing when they will fail. It is fine if you get a good patch and make 800% before they fail but equally you could have only been using it for a month before it fail and wipe out your account. Matingale is best avoided.

Pacifico posted:
I am not convinced that martingale and grid system are good.

With a large enough account balance, and the smallest possible trade units or lot sizes, martingale and grid systems can be extremely profitable.

However martingale and grid systems are not the same thing. Grid systems do not always use Martingale.

Martingale is generally used to calculate the size increment level of the next trade that you are going to open.

Martingale doesn't have a specific entry and exit point.

Your entry and exit points would be determined by your trading strategy.
Martingale determines the size of the trade.

Pacifico posted:
There is no way of knowing when they will fail.

In general it should be noted that all trading strategies will incur losses at some point.

Pacifico posted:
 It is fine if you get a good patch and make 800% before they fail but equally you could have only been using it for a month before it fail and wipe out your account. Martingale is best avoided.

Again, the same could be said about all trading strategies and the discipline level of the trader.
Emotions in trading will typically be a greater threat to the investment capital than a martingale system would.

Martingale is a calculation method used to determine the lot size of the trade.
Your entry and exit points are determined by your strategy.

If a trader is using a high risk strategy with a small account balance, then there is a far greater risk of blowing the account.

If a trader is using a low risk strategy, trades very carefully using very small trade sizes, and has a large account balance, then there is less of a risk of blowing the account.

There are many things that have to be considered.

Very interesting points about martingale. I also thought that it was a high risk junk strategy but now I understand that it is more about determining lot sizing. Very interesting food for thought. I may adapt some of my risk parameters based on this

Martingale is a cost-averaging strategy.

It does this by “doubling exposure” on losing trades. This results in lowering of your average entry price.

The idea is that you just go on doubling your trade size until eventually fate throws you up one single winning trade. At that point, due to the doubling effect, you can exit with a profit.

Martingale is a cost-averaging strategy. It does this by “doubling exposure” on losing trades. This results in lowering of your average entry price. The idea is that you just go on doubling your trade size until eventually fate throws you up one single winning trade. At that point, due to the doubling effect, you can exit with a profit.

Martingale can survive trends but only where there’s sufficient pullback. This is why you have to watch out for break-outs of significant new trends – watch out especially around key support/resistance levels.

Trading pairs that have strong trending behavior like Yen crosses or commodity currencies can be very risky.

Forex trading business is much better option than any other profession! Forex trading business is also available for the part time Forex trader, since market is open for 24 hours! BY the way, Forex business is not appropriate for the greedy people who want to make quick success here!

Rohitfx posted:
Martingale is a cost-averaging strategy.

It does this by “doubling exposure” on losing trades. This results in lowering of your average entry price.

The idea is that you just go on doubling your trade size until eventually fate throws you up one single winning trade. At that point, due to the doubling effect, you can exit with a profit.

Martingale is a cost-averaging strategy. It does this by “doubling exposure” on losing trades. This results in lowering of your average entry price. The idea is that you just go on doubling your trade size until eventually fate throws you up one single winning trade. At that point, due to the doubling effect, you can exit with a profit.

Martingale can survive trends but only where there’s sufficient pullback. This is why you have to watch out for break-outs of significant new trends – watch out especially around key support/resistance levels.

Trading pairs that have strong trending behavior like Yen crosses or commodity currencies can be very risky.

It does this by “doubling exposure” on losing trades. This results in lowering of your average entry price...
Not exactly martingale can be any increase of trade size when equity is decreasing. so even 1.01

By your explanation you assume that you will have a winning trade that will win for all the other losses, however you are assuming that money is infinite. Martingale is not effective since you just gamble on the prediction that one will be a win, however, maybe you lose all your money before having that winning trade.

Cuz they close big red trades

mmcj posted:
By your explanation you assume that you will have a winning trade that will win for all the other losses, however you are assuming that money is infinite. Martingale is not effective since you just gamble on the prediction that one will be a win, however, maybe you lose all your money before having that winning trade.

You have a common misconception that a lot of people have about Martingale.

There is more than one way to use martingale for lotsize calculations.

For example, if you are trading EURUSD and your strategy indicates a BUY trigger you might open a ticket such as:
EURUSD BUY 0.01 SL 50 pips TP 100 pips

If the ticket hits the SL and closes out, then you might be down $5.00 on the account, so then you would wait for the next setup for entry.

When the new setup occurs on EURUSD, perhaps the strategy once again indicates a BUY trigger you might open a ticket such as:
EURUSD BUY 0.02 SL 50 pips TP 100 pips

If this ticket failed, we would analyze the market and wait for the next setup trigger.
So the next ticket might look slike:
EURUSD BUY 0.04 SL 50 pips TP 100 pips

The direction of the trade would be determined by the markets and your analysis of the situation.

This isn't just opening a trade and hoping it is the right direction. Just because one of the trades failed, doesn't mean we have to immediately enter the markets again and hope or gamble for a winner.


Martingale style lot size calculations can be very useful for doing account recovery in heavily trending currency pairs.

mmcj posted:
By your explanation you assume that you will have a winning trade that will win for all the other losses, however you are assuming that money is infinite. Martingale is not effective since you just gamble on the prediction that one will be a win, however, maybe you lose all your money before having that winning trade.

Martingale can be profitable, though even its good usage is always risky

I think the title is not correct. I think that in forex or any financial market, there are more than 90% of losers, I would say that it is close to 97%. Why is it hard to say but I think there is not enough training to do trading. Forex is a very liquid market and it takes enough experience to do the job. There are also many people who lack a system that is stable and changes strategies for a long time.

I think it is simple.
People are CHAOS trading, they do not have good trading rules and they do not obey rules.
They trade based on feelings and emotions and greed.
They lack proper education, training and information.
So the outcome is predictable.
Imagine results of surgery done by somebody without
- proper education
- perfect understanding of tools used
- solid and stable table :)
- bright light

Moreover traders are underlevered and thus they are risking too much resulting in loss
...

togr posted:
I think it is simple.
People are CHAOS trading, they do not have good trading rules and they do not obey rules.
They trade based on feelings and emotions and greed.
They lack proper education, training and information.
So the outcome is predictable.
Imagine results of surgery done by somebody without
- proper education
- perfect understanding of tools used
- solid and stable table :)
- bright light

Moreover traders are underlevered and thus they are risking too much resulting in loss
...

i agree with you.....good job

well said. To make money doing anything you need understanding and experience. Wthout that failure is a certainty