Announcement

Collapse
No announcement yet.

Why Traders Fail (WTF) Series... My personal thoughts & experience!

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Why Traders Fail (WTF) Series... My personal thoughts & experience!

    You can never get any 'real' than this...

    1) We do not have discipline, we create a plan to trade, that's good. But:
    1.1) Keeping to the plan after entering the trade is quite a challenge, the longer you are in the trade, the more prone you are changing your initial plan.
    1.2) Keeping to the same plan over and over again is also difficult. If you have executed Plan A over and over again, closing trade after trade in profit or in loss, you will get tired of it over the long run. You will suddenly trade Plan X and Y and that is when you lose all your money.

    2) Over-leveraging:
    2.1) We might over-leverage because of mindset. We have a mindset of getting rich quick, we really want to turn $100 to $1000 overnight, we really believe we can do it so when trade turns against us, we quickly lose our money.
    2.2) We might over-leverage because of revenge, we lost trades over and over again, so we need to re-gain all that losses, so we risk more to gain more, and again, when our trade goes against us, we lose our money faster than expected.

    3) Instant gratification:
    If we are always right in trading, we might not have this problem, but the thing about trading, you can never be 100% correct, so you are bound to have losing trades. When you have too much of losses, you want to just be right at least once or a bit. So when our trades gets a little bit into profit, we will close it. As such, the profit will be a little bit. We do not do the same with losing trades, we try to wait it out, hoping that price will come back, or giving the trade "some room" before it will move in your direction. Over time, the losses will overcome the tiny profits and we will again lose our money.

    4) Impatient:
    It is good to trade according to what we see but we need to have a confirmation. Sometimes we see a seemingly obvious and outrageously big down candle and we jump in a SELL trade, we did not wait for any sort of confirmation like candle close. As such when we enter we are caught at the extreme low point and before the candle closes, it reverse and creates a obvious and outrageously big UP candle. We know we are doomed. We never expected nor could imagine it can ever be a UP candle, our eyes and impatience deceived us.

    ... more to come ...

    In the meantime, LIKE, share and subscribe. Even better, write your own reasons you've failed before.
    Last edited by FanFocusATgmailCOM; 09-06-2016, 12:48 AM.
    The forex market is already so complex, don't make it worse.

  • #2
    Originally posted by FanFocusATgmailCOM View Post
    You can never get any 'real' than this...

    1) We do not have discipline, we create a plan to trade, that's good. But:
    1.1) Keeping to the plan after entering the trade is quite a challenge, the longer you are in the trade, the more prone you are changing your initial plan.
    1.2) Keeping to the same plan over and over again is also difficult. If you have executed Plan A over and over again, closing trade after trade in profit or in loss, you will get tired of it over the long run. You will suddenly trade Plan X and Y and that is when you lose all your money.

    2) Over-leveraging:
    2.1) We might over-leverage because of mindset. We have a mindset of getting rich quick, we really want to turn $100 to $1000 overnight, we really believe we can do it so when trade turns against us, we quickly lose our money.
    2.2) We might over-leverage because of revenge, we lost trades over and over again, so we need to re-gain all that losses, so we risk more to gain more, and again, when our trade goes against us, we lose our money faster than expected.

    3) Instant gratification:
    If we are always right in trading, we might not have this problem, but the thing about trading, you can never be 100% correct, so you are bound to have losing trades. When you have too much of losses, you want to just be right at least once or a bit. So when our trades gets a little bit into profit, we will close it. As such, the profit will be a little bit. We do not do the same with losing trades, we try to wait it out, hoping that price will come back, or giving the trade "some room" before it will move in your direction. Over time, the losses will overcome the tiny profits and we will again lose our money.

    4) Impatient:
    It is good to trade according to what we see but we need to have a confirmation. Sometimes we see an seemingly obvious and outrageous big down candle and we jump in a SELL trade, we did not wait for any sort of confirmation like candle close. As such when we enter we are caught at the extreme low point and before the candle closes, it reverse and creates a obvious and outrageously big UP candle. We know we are doomed. We never expected nor could imagine it can ever be a UP candle, our eyes and impatience deceived us.

    ... more to come ...

    In the meantime, LIKE, share and subscribe. Even better, write your own reasons you've failed before.
    Wow, nice post FanFocus. You're a lot wiser than your avatar looks

    This is spot on and pretty much encapsulates every reason a trader fails under their own steam.

    Personally I'm guilty of over leveraging, wanting instant gratification and being impatient.

    I police these faults by only trading during the Asian session (when my strategy works), having very tight stops that allows me to use higher leverage than most importantly keeping myself busy between trading set ups so I'm not tempted to trade just for the hell of it.
    Audio Interview with Jay from SteadyCapture Now Available
    Click Here To Listen

    Comment


    • #3
      worst of all is that we know the causes, we know what to do, we know what we lose and still seems that laziness always wins us.

      I think the solution is to find some kind of energy that can counteract laziness that makes always stumble over the same stone.

      Comment


      • #4
        Originally posted by Nick View Post

        Wow, nice post FanFocus. You're a lot wiser than your avatar looks

        This is spot on and pretty much encapsulates every reason a trader fails under their own steam.

        Personally I'm guilty of over leveraging, wanting instant gratification and being impatient.

        I police these faults by only trading during the Asian session (when my strategy works), having very tight stops that allows me to use higher leverage than most importantly keeping myself busy between trading set ups so I'm not tempted to trade just for the hell of it.
        You aren't the only one. Although I'm beginning to master the need to over leverage. I'm now able to stick to my lot sizes and enter small enough and add multiple times on smaller corrections if market goes my way.
        My largest issue to date is the need for instant gratification but this also due to being impatient and entering too soon. I'm actually correct with my analysis but I have a hard time waiting for a clear entry signal and correction (I like to trade break outs) causing me to enter too soon. As a result the market first goes one last time "against me" causing me to close in a loss to then, a few hours, later go in the direction I envisioned and move to my TP. This in turn causes me to then be too cautious and not enter when my plan actually tells me to. Once I finally make that *click* I believe I can finally be consistent for years.

        Comment


        • #5
          Originally posted by reaper_unique View Post

          You aren't the only one. Although I'm beginning to master the need to over leverage. I'm now able to stick to my lot sizes and enter small enough and add multiple times on smaller corrections if market goes my way.
          My largest issue to date is the need for instant gratification but this also due to being impatient and entering too soon. I'm actually correct with my analysis but I have a hard time waiting for a clear entry signal and correction (I like to trade break outs) causing me to enter too soon. As a result the market first goes one last time "against me" causing me to close in a loss to then, a few hours, later go in the direction I envisioned and move to my TP. This in turn causes me to then be too cautious and not enter when my plan actually tells me to. Once I finally make that *click* I believe I can finally be consistent for years.
          Nice, thanks for posting ur take.
          The forex market is already so complex, don't make it worse.

          Comment


          • #6
            "Always good to be out of the market when things get a little crazy. Minimizing your time in the market is always good. Just like opening your mouth always exposes your intellect for everyone to see and to be judged. Keeping your mouth shut gets people thinking how much this person actually knows..".

            Something i wrote in the live trade room today... About being on the side lines. It is well known that markets can affect us emotionally. Having positions in the market already exposes us to risk. So it is beneficial to remain out of the market and only be in it as long as necessary.

            The take away here is preferring to be out than to be in. Till next time. Trade safe.
            The forex market is already so complex, don't make it worse.

            Comment


            • #7
              Thank you very much for your contribution! I am sure, your post may help new Forex traders to know general mistakes of novice traders! Frankly, which traders start their real trading without enough preparation (means without profitable trading strategy or plan) they may suffer in their real trading! Forex trading is the most standard profession, so never try to be a successful trader without proper learning!

              Comment

              Working...
              X