Shevvy
Private, 1st Class
- Messages
- 34
There is only one reason why traders fail to win and the answer is really simple,”traders lose more than they win”. That's it in a nutshell, everything elseis just pure conjecture.
To be successful in the financial market of your choice does not require that you are fully aware of the basics of that market, i.e. What is forex? What is the stock market? You don't need to understand how indicators work. In fact you can successfully trade any financial market without any prior knowledge of that market whatsoever. What's more you don't even need to follow a trading plan, (a golden rule for the trading connoisseur).
If you have the ability and understanding to be able to read and analysis a financial chart you can become more successful than you ever thought possible.
What's more chart reading and analysis is the same for every financial market that uses trading charts. Therefore learning the ability to read and analysis one financial chart means you can do the same for any other financial chart, whether they are stocks, commodities or even the more exotic traded funds.
What is 'Trading'?
The first thing you need to understand is the concept of 'Trading' and what 'Trading' actually means? Although in most financial markets today 'Trading' has become all encompassing but you will find that the term 'Trading' really does have a raison d'etre, a specific meaning.
Trading only begins the moment you click trade execution (buy or sell) and trading stops the moment you click stop trade. And that is all 'Trading' is. Regardless of what others may try to infer to you anything else is simply not trading.
Those other so-called 'Trading' tasks which appear under the 'trading umbrella' come under totally different headings. For example the 'trading strategy', it does not trade, it simply tries to locate entry points from which you can then trade.
The Problem
An article on the DailyFX* website in which the author had access to 40 million real trades derived from a major FX broker across 15 most traded currency pairs from 3/1/14 to 3/31/15 appears to verify the belief that it is the inability of traders to make more profit than losses which is the sole problem for traders losing in all markets.
The article quoted that the evidence revealed that the average trader when winning gains $50 but loses $500. This confirms that it is a lack of 'Trading' knowledge which makes it difficult for the new, inexperienced and even the more experienced traders from getting a foothold in to the market.
However, while the article clearly identifies the problem, the failure of the author to grasp the simple answer behind the analysis shows how deep seated this problem really is.
The answer to the problem of, Why do traders lose? is, most traders lack the ability to trade. But how can treaders be expected to understand a concept they genuinely have no idea exists?
Conclusion
Traders need to be educated in the art of 'Trading'. To be taught that they influence their trades while still in progress.
Without this type of 'Trading Education' traders will continually fail at a high rate.
* Article quoted: D Rodriguez@DailyFX.com
To be successful in the financial market of your choice does not require that you are fully aware of the basics of that market, i.e. What is forex? What is the stock market? You don't need to understand how indicators work. In fact you can successfully trade any financial market without any prior knowledge of that market whatsoever. What's more you don't even need to follow a trading plan, (a golden rule for the trading connoisseur).
If you have the ability and understanding to be able to read and analysis a financial chart you can become more successful than you ever thought possible.
What's more chart reading and analysis is the same for every financial market that uses trading charts. Therefore learning the ability to read and analysis one financial chart means you can do the same for any other financial chart, whether they are stocks, commodities or even the more exotic traded funds.
What is 'Trading'?
The first thing you need to understand is the concept of 'Trading' and what 'Trading' actually means? Although in most financial markets today 'Trading' has become all encompassing but you will find that the term 'Trading' really does have a raison d'etre, a specific meaning.
Trading only begins the moment you click trade execution (buy or sell) and trading stops the moment you click stop trade. And that is all 'Trading' is. Regardless of what others may try to infer to you anything else is simply not trading.
Those other so-called 'Trading' tasks which appear under the 'trading umbrella' come under totally different headings. For example the 'trading strategy', it does not trade, it simply tries to locate entry points from which you can then trade.
The Problem
An article on the DailyFX* website in which the author had access to 40 million real trades derived from a major FX broker across 15 most traded currency pairs from 3/1/14 to 3/31/15 appears to verify the belief that it is the inability of traders to make more profit than losses which is the sole problem for traders losing in all markets.
The article quoted that the evidence revealed that the average trader when winning gains $50 but loses $500. This confirms that it is a lack of 'Trading' knowledge which makes it difficult for the new, inexperienced and even the more experienced traders from getting a foothold in to the market.
However, while the article clearly identifies the problem, the failure of the author to grasp the simple answer behind the analysis shows how deep seated this problem really is.
The answer to the problem of, Why do traders lose? is, most traders lack the ability to trade. But how can treaders be expected to understand a concept they genuinely have no idea exists?
Conclusion
Traders need to be educated in the art of 'Trading'. To be taught that they influence their trades while still in progress.
Without this type of 'Trading Education' traders will continually fail at a high rate.
* Article quoted: D Rodriguez@DailyFX.com
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