98 % of 4X traders lose money - Why?

[lloydie]

Earning money is never easy. If it easy, everyone will come to it and then it is harder.

But if you want to know why, I can talk to you:
Greeding and lack of Forex knowledge are two main factors that makes almost traders lose money.

These scammers who pretend to have your best interest at heart, take adVANTAGE of new traders ignorance. I had one of these who said their win rate was fantastic and promised a dedicated support team track down my every move until I had invewsted $5,000 take adVANTAGE of me, if you get my drift, not even bothering to tell me that what they were promising me I was not ready for.
Each of them tells us that the others are scammers. I think we should ask those trying to take our money from us whether they are traders, instead of just salesmen or saleswomen. The women are just as bad.

 

[lloydie]

Well, that's what the statistics say: 95% of traders lose money and that’s a pretty high percentage, and just 5% of them actually can profit from it, I guess this makes you expect to lose since a lot of traders lose, it plays with your mind and your emotions. But I see that losing is a process of learning from those mistakes and finally figure out how to plan well and stick to that plan.

I ask myself why are these people who are making millions of dollars, living in, palatial mansions, have huge yachts and have their own planes, bothering to teach us to trade for paltry sums.

 

[Pharaoh]

98% - rather frightening statistics It seems to me that to become one of 2% is mission impossible)

Nobody knows the real numbers. There are threads which say anywhere from 85% to 99%. Real stats would be nearly impossible without an agreed upon set of definitions. Everyone (even the George Soros types) has a bad day, week, or month. Are they considers to be losers for that time? A newbie who goes "all in" could win 2 or 3 trades before slamming into a brick wall. Is this person classified as a "winner" for those first few days? If a trader had 2 methods being tested in 2 live accounts and one wins and one loses, do we call it even or compare the dollar (or percentage if the accounts don't have the same opening balance) to decide what category this person belongs in?

Here's one fact which should encourage you. A lot of people read about unlimited profits or buy some EA, education package, or trading method, fund an account with $100-$5000 dollars, and quickly blow their money. A large percentage of those don't come back.

On the other side, there are traders who either get the concept of risk management up front (or learn it the hard way), and then realize that the first key to success is not losing too much at any one time. They may run slight losses or be around breakeven for quite some time, but eventually will start to gain more than they lose.


Another way to think of it. How many people who take a foreign language as a college elective end up becoming highly fluent in the language? I'd guess it's only a few percent. The ones who stick with it and work at it over time have a much higher success rate than those who bought "Speak German in 10 minutes" course and quit after failing to have a perfect conversation the first few times.

 

[Davidrick]

Nobody knows the real numbers. There are threads which say anywhere from 85% to 99%. Real stats would be nearly impossible without an agreed upon set of definitions. Everyone (even the George Soros types) has a bad day, week, or month. Are they considers to be losers for that time? A newbie who goes "all in" could win 2 or 3 trades before slamming into a brick wall. Is this person classified as a "winner" for those first few days? If a trader had 2 methods being tested in 2 live accounts and one wins and one loses, do we call it even or compare the dollar (or percentage if the accounts don't have the same opening balance) to decide what category this person belongs in?

Here's one fact which should encourage you. A lot of people read about unlimited profits or buy some EA, education package, or trading method, fund an account with $100-$5000 dollars, and quickly blow their money. A large percentage of those don't come back.

On the other side, there are traders who either get the concept of risk management up front (or learn it the hard way), and then realize that the first key to success is not losing too much at any one time. They may run slight losses or be around breakeven for quite some time, but eventually will start to gain more than they lose.


Another way to think of it. How many people who take a foreign language as a college elective end up becoming highly fluent in the language? I'd guess it's only a few percent. The ones who stick with it and work at it over time have a much higher success rate than those who bought "Speak German in 10 minutes" course and quit after failing to have a perfect conversation the first few times.

I completly agree with you! Of course, success depends on efforts. Only the real desire to achive the aim can give a result. And it refers to every sphere of life

 

[EuroTrader]

I completly agree with you! Of course, success depends on efforts. Only the real desire to achive the aim can give a result. And it refers to every sphere of life

If we will know which trade is good for us then we will be able to trade and earn easily. But we all know that sometimes in our trading we have made a mistake and it should be corrected as soon as possible

 

[Pharaoh]

I completly agree with you! Of course, success depends on efforts. Only the real desire to achive the aim can give a result. And it refers to every sphere of life

Of course, I should caution on the other side too. I can assure everyone here that no matter how hard I practice or how much I believe in myself or how loudly all of you cheer me on, there's no way in hell I'm ever going to be a sprinter the US Olympic Track and Field Team. I'm just not built for that.

The good news is that if you fail at one area of forex, that doesn't disqualify you. I tried scalping. I found it to be a very effective way to hand my money over to the broker. When I shifted to longer term trades, losses slowed and profits began to trickle in. Conversely, if someone who loves making split second decisions based on the slightest chart wiggle tried to trade like me, it wouldn't go well.

There will be some people who fail at all areas of forex. Not everyone is cut out to be a forex trader, just as not everyone would be good at carpentry, gardening, or brain surgery. The advantage of forex is that if you use risk control, you won't lose vast sums of money (or cut the wrong part of someone's brain) before deciding if it's worth continuing the effort vs finding another way to make money as a hobby or occupation.

 

[bigdolly]

The odds are against us in this game, no wonder we will always be on the losing side there. to make the game profitable we need to turns odds in our favor (make mathematical expectation of the game positive) and strictly follow this strategy. If you don't turn odds on your favor then know that any profits you made/daily/weekly/monthly is a just a lucky period.

 

[EURUSD]

Loss in trading has many reason, maybe because as trader they greedy in trading and maybe as trader they still lack in experience also knowledge, and also actually forex market itself is very dynamic movement and unpredictable, but if trader having good understanding with the trend market hence might will possible making easy profit

 

[BeiShi]

98% - rather frightening statistics It seems to me that to become one of 2% is mission impossible)

yes... it's really frightening)) I think it needs many ages to become one of these experts))

 

[Davidrick]

it's all in our own hands) there are so many people that trade and do it successfuly, it means that it's real..) so let's try)