Why do many traders lose? - page 7

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Ok in order I will tell the reasons of why I think many traders lose

 - They don't understand the system: They don't know what are they actually buying/selling when opening a position, for example, a person would say that the euro is going to be stronger than the dollar so then they sell the pair EURUSD because in europe if the dollar falls the price of it is going down.

 - They don't know which factors affect the currency and they just follow the trend they think they know

Once a trader has passed this first steps, there are the steps for the experienced traders

 - Lack of emotional intelligence

 - Lack of risk management

 - Use of only one or 2 indicators or 1 or 2 time frames charts

 - They ignore the important scheduled news and/or to check (unscheduled) news regularily 

And then for the expert traders

 - They believe they know it all after a good streak

 - They tend to surrender after a bad streak and respecting their strategy and want to re-do it all over again (lack of perseverance)

And finally for 'vinditraders'

 - Unable to adjust the strategy to market conditions. 

 

They lose mainly because they believe all the crap that is fed to them by people writing books or teaching trading that do not really know how to trade themselves

The biggest problem in entry of a trade is that amateur traders think that they have to enter with perfect precision and use a tight stop- what a professional trader knows is that the market is an auction, prices do not move due to squiggly lines on the chart they move due to orders in an auction market- so we enter in increments in an area, this means we are not stopped out if the trade works and we get a better average entry price, if the trade does not work we lose minimum since we averaged in to get the best price.

The biggest problem overall with the amateur trader is his/her use of leverage- As a professional trader I have learnt the hardway - use low leverage= profts even with a crap strategy,,,,BUT high leverage + very very good strategy=====LOSS- AC BLOWUP at somepoint

 
Tan Phan Ngoc:
If you have a good strategy no need to use stoploss.
you always need sl
 
abdul salam:
you always need sl

You are right. So far I saw, every good and stable strategy using stop loss.

If anyone don't accept this, hope they got a perfect answer from 15th January' 2015 tragedy with CHF pairs.  

 
abdul salam:
you always need sl

no, you do not.

you can hedge, which is a good strategy, for me.

 
for psychology problem, greed and over trading is mine 
 

I am working in a brokerage company. I see so many people PLAYING with their money every day, without any idea how to protect their capital.

Clients blasting more than 250K USD in less than 2 years. OMG

Forex gives you just enough rope to hang yourself
 
USE LOW LEVERAGE- accumulate small profits frequently over time- You do not need a stop per se on each trade- you could use a stop on your entire account - for example at 30% DD
 
Valeed Mehmood:

I have just joined MQL5, with a newly open account to show you guys my little bit trading skills.

You can take a look here my performance. 

https://www.mql5.com/en/signals/137769 

Good policy. Gold trader. Go ahead. 
 
too much grred
no realistic plan
over trading
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