Everything starts together spelling it loose instead of shed.
Because they suck, they lose. They lose more than the spread/commissions to precisely the identical reason that poker fish lose more than the rake: they are up against vastly superior competitions. Yes, poor risk management is responsible for a reasonable share of failures, but no quantity of risk management ability would help the majority of losers. Actually it would, because a losing trader that's risk averse would stop trading.
As for me, I do not go along with the concept that the vast majority of people lose instantly or blowing an account or 2 is part of this procedure.
It is only that newbies who lose complain and b*tch about it, and thus that is all you read. Some folks simply give it a celebration and go just fine and sit quietly in the corner counting their cash.
Much like all the 95% fail rate, I will concur 95 percent of accounts are losers, but ineffective are more likely to open a second account if there is an offer, and let us be honest, most people with accounts do it to have a flutter not trade, I'm certain the success rate of folks who take trading severely is considerably higher than 5%.
The reasons as per my experience:
1- They take forex to be a casino.
If you believe you are gambling then regulation of averages that which will happen after a time.
2- direction
You need the correct set-up for trading. This includes: atleast 2 internet connections(I currently have 3). Fail-safe power options. Back-up of charts.
3- Money management/Leverage:
Recognizing leverage is very important. If you are placing in 100 USD and accepting trades worth 10000 USD well chances are just one mis-step will describe the end of your account or worse create you set absurd trades after 1 diluting commerce.
4- Plogy
Trading is not a Simple job. The most significant thing to develop is the plogy, if you cannot keep cool when your position is loosing money and also make conclusions based on facts instead of emotions you dont stand a opportunity.
5- Performance
Every trader at their 1st account tries to receive a performance equal to their demo account. Well, there is a big difference between demo and real accounts, dont attempt to match the operation just look to preserve your capital. If you can do that I guarantee from the 5-6 month that your operation will be better compared to interest your money earns in banks and how the markets perform.
Because 'they can'. . .and so can you.Originally Posted by ;
MM is the secret.
Well, it is a two dimensional market.... It can just go up or down (theoretically).Originally Posted by ;
Thus, you've got a 50/50 chance of getting it right.
But, somehow it seems you have still got a 95% chance of making it wrong.
Yeah, I understand. Here's my take on it....
https://www.forexforum.co.za/general...framework.html
....becouse they're dumb, and dont have a slightest idea of sucesfull trading!??
You started 2 threads (over 6 weeks past which you never posted again at) and which you said .... ummm .... Nothing really.Originally Posted by ;
It seems from your spelling English is a second language so something has to be lost in the translation. So what are you trying to convey?
Well for a start the odds are not 50/50, the disperse assures us of that.Originally Posted by ;
And second, it is likely what newbies don't do (instead of what they do) that raises the likelihood of collapse.
Your question is a great one, and it's probably worthy of an entire book, or 2, but my two cents is that:
Most newbies believe that forex or trading generally can be cracked from the discovery of a system which can make them happy and wealthy. It's usually assumed that the system needs to be based primarily on technical indiors, which are available on many trading platforms. These assumptions result in behaviors which lead to losses - simple. (No wonder why nearly all retails EA's eventually neglect. .)
Trading requires years of learning and skills development - that is the part that people usually don't do. Trading success does not live in the system - it has, and it never will. It resides in the development of the trader and in the ongoing development of their whole trading methodology.
Easy response - bloody hard work to implement.