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

Messages
22
I hope this can be made a sticky if worthy... Just some advise to those starting out to avoid doing these mistakes...

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 ...
 

Painskin

Private, 1st Class
Messages
55
Too many people see some positive things in their trading accounts and assume whole wolrd will be now for them in that matter absolutely and possibly. I do not want to know what is what clearly and possibly anyway for many many reasons.
 

Mneri

Private, 1st Class
Messages
34
I agree with most of the reasons why traders fail. It's true that most of us don't have discipline, I know that some of us make a public journal where we record all our activities to become more disciplined in this way. Over-leveraging is also one of the problems, as we can take great risks and lose big sums in a moment. In fact, I'm not sure I agree on the point about instant gratification, so I won't talk about it. And as for impatient, I agree 100%. Many of us can't just wait for a successful deal closing. Thank you for your opinion, I liked what you wrote there :)
 

Talar

Private, 1st Class
Messages
62
Market discipline is a relative concept, because on the one hand you really need to be strong and careful enough to follow the strategies. On the other hand, sometimes you should break the rules and it can bring even more profitable results, but such situations are a little less common...
 

7Bulletin

Sergeant
Messages
137
There are a lot of nuances that are important in the market, but it is important to understand that they are understood already in the process of trading, some points are even difficult to explain to someone, they are more like a certain sense of taste in the market.
I think that it is necessary to practice a lot and not to risk large sums at the beginning of the journey.
 

DeweyWarner

Recruit
Messages
6
I think they fail because of no trading plan and they don’t manage their risks properly. Hence, end up losing money.
 

Farm_Yard_Forex

Corporal
Messages
115
I think putting profit and projected ROI over a sound risk strategy first and foremost is the undoing of many traders. Soon as you focus on the profit first then you open yourself up to being flexible on your risk management.
 

Tahntaman

Private, 1st Class
Messages
41
I think we must face setbacks in order to appreciate more profitable moments.
And I also think that only those who don't do anything do not face such failures.
 

Fruby

Private, 1st Class
Messages
58
Yes we all have setbacks. It is part of the learning process.
I think we must face setbacks in order to appreciate more profitable moments.
And I also think that only those who don't do anything do not face such failures.
 

vvovan

Private
Messages
16
from all this sht i tell you my thing.
1. you'll never read other articles and thred when all good.
2. you lern from yourown mistakes only.
thats all.
 
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