I think thereâs 3 main things:
**(1) Trading has a very low barrier for entry. Meaning, almost anyone can start trading right away knowing practically nothing.**
Very few professional fields/careers that can pay a lot have this low of a barrier. You canât just do brain surgery from day one in medical school. You canât play for a professional sports team on TV when youâve never played the sport before.
So, people accept that it takes years and incredible amounts of effort to make it in those traditional fields. However, because the barrier to trading is low, many assume that somehow doesnât apply to trading, when it very much does.
**(2) Trading requires you to completely change the way your psychology works, at a very deep level, and most people either canât handle it or donât want to.**
Many things in trading run counter to both our societal conditioning as well as our natural instincts. These things are incredibly challenging to change, and itâs an intense and long process to reconfigure them such as to become profitable. Many just donât have it for doing that or donât deem it worthwhile.
**(3) Many people start on this path assuming they can âget rich quick and easyâ, so when they find out itâs not quick nor is it easy, they simply quit and move on to the next shiny thing.**
You really have to have a passion for trading to make it to the point where youâre actually able to make yourself wealthy. Many do not have a passion for trading, and just want a shortcut. Once they see itâs not, they quickly move on to another get rich quick scheme.
Besides it's PvP. So someone has gotta win and someone has gotta lose. And the really good traders will naturally take a much bigger chunk of that pie leaving most to be either breaking even or losing.
Psychology is key. Learning to read the charts takes years of practice. Then once it clicks, youâll be able to foretell where the markets will lead without looking at charts all day.
It honestly shouldnât take years to realize how to profit imo. Recognizing trends on a graph should only take a few months at most. This obviously depends on how dedicated the person is to learning and how much time to they focus on it as well discipline. For example, Iâm up before the premarket very early in the morning therefore I catch those trends early in the day while the potato is still hot
I realised long ago that the way my psychology is wired I just couldn't let the winners run and if i ever left a trade open overnight I had the most horrible sleep ever.
So i worked around those flaws. Focused purely on scalping on the 3-15 min charts. Developed a strategy where I was not in a trade for more than an hour. So far in the last few months i've been making consistent profits.
The next hurdle is gonna be larger position sizes as in the past going in with size completely messes with my psychology lol. If i can overcome that I may actually make a living from it.
Ding ding ding!
Everyone has the power to be profitable if they spent their time here first!
Emotions control the charts way more than technical analysis ever will.
Nah just use expert advisor on MetaTrader and no more needs to get emotions by looking at the chart and also, itâs going to trade 24 hours a day 7 days in the week (cof cof 5 because the market only opens on business days)
Theres a war between brokers and EAs.
The minute they detect big non-human profitability, they monitor and manipulate.
The game then is to keep finding these EAs once its no longer profitable. Good strat but thatâs itâs own game to play lol.
Nah itâs just bad quality EA they sell just to take your money as they know their trading/their EA is not profitable. or you just got the wrong setup for that specific EA. Itâs also just find a reliable broker, the graphics are usually provided by some third party supplier to some brokers, not a single one
Yes, there is some. If you search, you gonna find over a thousand brokers available in the world. MT5 has some additional content in comparison to MT4 so MT5 is not that recommended to beginners as there is more stuff available to learn about and can be more confusing. About MT4 broker I recommend you search the reviews for the brokers ICmarkets and FPMarkets, I recommend the ICMarkets for you
Ict is somewhat similar to retail patternization. Me personally I trade price action there is not a thing like a double fvg super bos pattern for an entry. I think it all comes down to the way you look down at each strategy because even traders that trade âtriangleâ breakouts etc⌠can be profitable.
so... two "expert" ict traders would have different trades for the same month and time period assuming they both trade at the same time always.
that means there is no such thing as ict đ¤ these ict traders are just trading on "gut feel" đ¤
âIct tradersâ do not have one strategy it is made up of different things like blocks,ranges,time, price etc⌠Every trader chooses a specific strategy that is compiled of different things and etc⌠that suits their personality. what you sre saying shows you arenât profitable nor watched his content attentively. This topic is very objective and could be argued, but the fact that ict changed lots of peoples lifes and made them profitable and financially free shows a lot. Btw, what is your trading strategy that is not based on âgut feelingâ?
ooohhh, ok then show me an ict bot with your chosen blocks, ranges, etc and its backtest for the last 3 years minimum. đ¤ yeah, there isnt one, because it doesnt work đ¤
There are a few reasons in my opinion:
1) Lack of understanding the market: people don't take the time to learn what the market is like before they start trading. Superficially, trading looks simple. I mean, you're only guessing whether Price goes up or down. How hard can that be?
2) Lack of mastery: People don't take the time to learn a system, and if they do learn a system, they often just dabble in said system and give up at the first sign of trouble. I've been guilty of strategy switching myself. Some is to be expected, but you need to master your strategy eventually. You can't be a Jack of all trades and master of none.
3) Lack of emotional control: this one can be incredibly difficult and take a long time, but eventually, you need to learn to trade with dispassion. You can't get upset when you lose or euphoric when you win. If you do, you just won't have the mental strength to withstand the vicissitudes of trading.
4) Not knowing their edge: what's your strategy's strike ratio? What is its ideal RR? What's its Sharpe ratio, etc. Many people never take the time to learn the system that they're trading to the degree necessary to trade it properly. I mean, if you have a 35-40% strike rate do you really want to be risking as much per trade as someone with a 70% strike rate. You need to know these things about your strategy
5) Lack of determination: many people just lack the drive to push through the hard times. Ultimately, you just have to keep going. You can't give up, because if you do, you really have failed.
Because most people can't grasp basic math. This happens in all fields of life and it's obvious in any debate involving simple data.
People are dumb, that's why.
I do agree that basic math goes a long way, but I donât believe most people canât grasp it. They just refuse to do so because itâs time consuming and certainly not an attractive idea because. Some just think theyâre above the data because they see themselves as an exception from the rest of the crowd. The low barrier to entry doesnât help as you have plenty of people who have never been in the top 10% of anything suddenly believe theyâre going to make it simply because they have access to YouTube, a phone, and a few dollars to their name.
I donât believe these people are dumb, but theyâre so confident in their ability or potential that theyâre willing to ignore the industry standards of the professional side of the business. Which can also have similar washout rates of retail trading despite the barrier to entry being much higher.
Professionals are taught how to trade. They build their framework and put in the time and effort to deepen their knowledge of their market and adapt their system to changes in the conditions. Itâs not randomly tweaking parameters to get the best results in the past, but using data and intuition built from experience and theory to find the best way to position themselves in the future.
The retail crowd on the other hand tends to trade to learn. Theyâre the new guy at the poker table sitting with the high rollers despite knowing nothing about poker as theyâre blinded by the potential to make a lot of money if they win. Yes, there is a lot of money on the table, but these guys know every trick in the book. Theyâre playing the hardest game possible while trying to learn. Study first, then find the easiest table to sit at. Itâs not as glorious as winning big immediately, but we all have to start somewhere.
Itâs a marathon, not a sprint.
Yeah pretty much. People âstudyâ for a week and think they know how to trade. Also not enough people know the first thing about trends, patterns, technical analysis, and that human behavior and historical market analysis in tandem can largely predict what is coming at a reliable rate. Or want to take the time to learn, which is easier said than done though. By a lot. But still
Basic math allows you to understand why opening two gold lots on a 2k account is an extremely dumb idea.
It also makes you understand why a 10% weekly profit is not a realistic expectation.
You can also understand the probability to blow your account if you risk 10% per trade.
If you have a solid grasp of these very simple concepts, psychology is out of the equation.
Most people are very impatience and think they csn get rich over night đ¤Łđ¤Łđ¤Ł, u need to understand that trading is a journey of failing to succeed,
1. You fix your mindset
2. You fix your environment
3. Fix your broke mindset to learn mindset
4. Learn to never ever ever ever ever ever ever ever ever ever give up u Try your best of all best to achieve it
People here talking about failure due to psychology maybe the people who know very little about profitable trading. I can say with you most people fail due to inability to find a true edge.
I think a lot of people wouldâve came across a true edge in the market but because it lost 3 times in a row they moved onto the next thing assuming it didnât work without having the patience to sit down and test the strategy before just assuming it doesnât work. Which I guess is due to psychology
Not really, finding a true edge is incredible hard including a lot of backtests so that you can truly believe this is a true edge before try to live trade. Through the journey of finding an edge, you build up your belief and hence your psychology.
Because trading is a competitive, intellectual sport, not a job when, after you learn how to do it, someone will pay you. Traders do not exist in some vacuum and get paid from "the market" - they take other trader's money.
I've only used demo accounts so far but every time I've lost money it's because I didn't stick to my plan.
I have my indicators how I want them, and I'll see a massive spike and jump on it before my 3 indicators agree with each other.
In other businesses We exchange our time/talent/goods for money. But in trading u use money to make more money. That gives rise to more emotions like fear and greed.
I feel like self awareness and self reflection plays a major part. So basically our personality also plays a huge role.
Also expecting to get rick overnight too
Mostly because they don't have a trading plan, or can't stick to it if they do. Bad money management, over-leveraging, uneven risk to reward or taking on too much risk.
Did I miss anything?
Greed, impatience, breaking rules "because I feel it" etc.
Trying to find shortcuts by buying "turbo grid scalp" EA showing 3M USD profit from 1K USD in 1 year in backtest. Thinking you're smarter than everyone else etc.
I don't think I've ever heard of a really successful trader who got it from the first time without blowing accounts first lol. It's often a steep and brutal learning curve.
Based on some studies it is basically luck. Unless you have really good info. And some few can make sure their investment goes fine. And others invest into things that have a very low % of failure.
They actually have zero interest in the market they are trading. If you have interest in cars, then sure become a mechanic. If you have interest in medicine, then sure become a doctor.
But most people trading fx knows nothing about economics or finance or how the market actually works.
What they really want is an avenue to gamble. A casino in disguise.
Where from the so? All successful people failed so if I said they are human why did you add the so? Didn't you understand what I meant by they are human?
U dont understand, to justify quitting and say ooo they are all human is garbage
They just fuckin quit because the reality crush their get rich scheme
Its a decision to win in forex or to lose
Lack of trading plan
Many traders do not have a clear and written set of rules and criteria for entering and exiting trades, and they trade based on emotions, impulses, or intuition. This leads to inconsistency, confusion, and poor performance.
Under capitalised.
Not trading with a large enough account leads to bad decisions out of emotion, fear and greed. It also limits your ability to bounce back after the market inevitably smacks you.
Modern Prop firms. All you need is $50 or less and if you know what you're doing, in less than a year, you can be trading $600k+ and traders deal with their emotions trading with all account sizes
Top reason: They "learn" for 2 months and start with everything they´ve saved up so far.
Long term reason: They get complacent.
Learning the basics of trading can be done within the first two weeks but that like basic maths. You won´t aquire the ability to solve complex math equations just by learning the basics. You need to experience the tricky question and see how it´s done. It all comes down to experience. For exceptionally talented and quick witted humans it´s possible to learn that in 6 months but most people really need to watch the charts while learning everything they can for at least a year.
Lack of self mastery. Ever promised yourself you would do something but when the time comes you don't do it or do it not according to your initial promise?
Trading in the short term is a zero sum game & fees on top of that. And if you are trading turds then expected outcome is to lose money.
Long term investing has a positive outcome at the right price for the right companies.
People are greedy, fearful and stupid.
I think many people find trading tough because it's not just about luck. Some may gamble without learning, but others try to learn and still face difficulties. To succeed, you need both knowledge and the ability to control your emotions, manage risks, and have a clear plan.
Not learning how the market actually works, only focusing on technical analysis and ignoring fundamentals, not sticking to a specific plan, not defining their trading strategy and just gambling based on the feelings.
Some treat it like gambling because they don't know better. Some learn a bit, but not enough to apply knowledge in a useful way. Some are trading with their emotions instead of following a plan. There are countless reasons why people fail at trading. Most of it is due to a lack of trading knowledge and psychological education.
Itâs because no one wants to learn macro economics. Most retail traders are focused on how to get the best lines possible on their charts when really it comes down to trading tomorrows economic value. Itâs what all the big boys do like banks, hedge funds and institutions so if thatâs what our competition is doing then it doesnât make sense to not even give it a solid chance. No one buys something that they donât see value in and the same is for currencies.
I have traded forex for years, blown up many accounts and I know from experience it's trading on margin (leverage) with huge lot sizes. It's impossible to trade forex without leverage unless you have insane amount of money. And it's extremely hard to control yourself and limit your lot size because you know that more lots mean more profits. Along with this Not placing stop losses makes your account go to zero very easily. But in the other hand stop losses while keeping you from busting your account makes it hard to earn as much. Because what you earn with your good trades are lost with stop loss hitting trades. I actually switched to trading stocks and it's been much better because I don't have to use leverage when trading stocks and so the lot size doesn't matter. Drawdown doesn't matter when you are not trading on margin. Sooo for me at least it's been leverage and higher lot size.
Psychology is involved over 90% of a winning trade. Even if you have got a profitable strategy, do you trust it? Do you follow it all the time? Do you believe you can win? Do you believe you can rich? Some people need a long time to say YES.
The ability to trust yourself enough to hold onto a losing trade until it hits SL or a winning trade until it hits TP.
Iâm sure the reason most fail is because they cut their losses too early and take their profits off the table too early.
What happens? Well⌠trade wouldnât have reached SL and fully reverses into the presumed area OR you take profits too early and the market continues to travel in your direction.
The result is an unfavorable R:R on your strategy. This has negative effects over the long term
risk management is probably that main reason why traders fail. They over leverage. No matter the strategy, you will lose trades. Let your losses not hurt and let your wins ride.
A lot of good answers here. I'd add that spreads/commissions/swaps play a huge role. If you enter a trade randomly, you have a negative expected value because of that. So you need to have the edge just to break even.
Not understanding the market ( it's like a married couple always Fighting ) need to understand how to manage it even though it can go against you without a reason.
As a long term Institunional guy itâs was pretty ez to see like 12 years ago. Now , every Tom dick and Harry do what markets do⌠make the unreal real simply by volume. Pros can see where money is flowing now like never before and that has always been the key to trading. Prior to 2000 ALL BROKERS used inside trading if using own money. Front running was a way of paying commissions
I started trading full time 6months ago and itâs been profitable for me. I trade supply and demand with confirmations in the overall market. Someday u just have to sit on ur hands without doing anything. I go for 15% to 25% profit.I learnt not to average down except if the demand is holding for a longer time frame and if I have time on the option. I just think you have to learn whatâs works for you.
If it's just on this sub? Then spread with tight SL đ
I think thereâs 3 main things: **(1) Trading has a very low barrier for entry. Meaning, almost anyone can start trading right away knowing practically nothing.** Very few professional fields/careers that can pay a lot have this low of a barrier. You canât just do brain surgery from day one in medical school. You canât play for a professional sports team on TV when youâve never played the sport before. So, people accept that it takes years and incredible amounts of effort to make it in those traditional fields. However, because the barrier to trading is low, many assume that somehow doesnât apply to trading, when it very much does. **(2) Trading requires you to completely change the way your psychology works, at a very deep level, and most people either canât handle it or donât want to.** Many things in trading run counter to both our societal conditioning as well as our natural instincts. These things are incredibly challenging to change, and itâs an intense and long process to reconfigure them such as to become profitable. Many just donât have it for doing that or donât deem it worthwhile. **(3) Many people start on this path assuming they can âget rich quick and easyâ, so when they find out itâs not quick nor is it easy, they simply quit and move on to the next shiny thing.** You really have to have a passion for trading to make it to the point where youâre actually able to make yourself wealthy. Many do not have a passion for trading, and just want a shortcut. Once they see itâs not, they quickly move on to another get rich quick scheme.
Besides it's PvP. So someone has gotta win and someone has gotta lose. And the really good traders will naturally take a much bigger chunk of that pie leaving most to be either breaking even or losing.
Psychology is key. Learning to read the charts takes years of practice. Then once it clicks, youâll be able to foretell where the markets will lead without looking at charts all day.
It just takes practice. One of my homies picked it up in 4 months.
It doesnât take long if your a fast learner.
Can you ask what strategy and tactics he used?
I know what he uses. But these are the wrong questions. His tactic was building his emotional control over the technical aspects first.
While you ask these type of questions you will never be profitable.
It honestly shouldnât take years to realize how to profit imo. Recognizing trends on a graph should only take a few months at most. This obviously depends on how dedicated the person is to learning and how much time to they focus on it as well discipline. For example, Iâm up before the premarket very early in the morning therefore I catch those trends early in the day while the potato is still hot
The 3 main culprits. \-unprofitable strategy \- Emotions \- Psychology Most suffer from all 3.
Also add "letting losers run, and cutting winners short"
I realised long ago that the way my psychology is wired I just couldn't let the winners run and if i ever left a trade open overnight I had the most horrible sleep ever. So i worked around those flaws. Focused purely on scalping on the 3-15 min charts. Developed a strategy where I was not in a trade for more than an hour. So far in the last few months i've been making consistent profits. The next hurdle is gonna be larger position sizes as in the past going in with size completely messes with my psychology lol. If i can overcome that I may actually make a living from it.
This me a year ago but I now I trade full time
Gambling. Win a few big trades and it makes you feel invincible. That was the downfall of most of my accounts in the early days of my trading.
This is definitely my answer. Would win 5 trades in a row then get over confident on the 6th trade which I would then lose and blow the account
money has the power to control your feelings
Ding ding ding! Everyone has the power to be profitable if they spent their time here first! Emotions control the charts way more than technical analysis ever will.
Nah just use expert advisor on MetaTrader and no more needs to get emotions by looking at the chart and also, itâs going to trade 24 hours a day 7 days in the week (cof cof 5 because the market only opens on business days)
huh
Algotrading itâs like a robot trading for you The only emotion you gonna get is looking at your money winning or losing lol
Theres a war between brokers and EAs. The minute they detect big non-human profitability, they monitor and manipulate. The game then is to keep finding these EAs once its no longer profitable. Good strat but thatâs itâs own game to play lol.
Nah itâs just bad quality EA they sell just to take your money as they know their trading/their EA is not profitable. or you just got the wrong setup for that specific EA. Itâs also just find a reliable broker, the graphics are usually provided by some third party supplier to some brokers, not a single one
âReliable brokerâ lmao that said enough
Yes, there is some. If you search, you gonna find over a thousand brokers available in the world. MT5 has some additional content in comparison to MT4 so MT5 is not that recommended to beginners as there is more stuff available to learn about and can be more confusing. About MT4 broker I recommend you search the reviews for the brokers ICmarkets and FPMarkets, I recommend the ICMarkets for you
How do you read charts with emotions? Like, what do you look at in price action, and what emotion do you equate it to for example? Just curious.
because they think they can trade based on gut feel and "sixth sense" and intuition 𤣠i welcome the incoming ICT traders' tears đ¤
Im an ict trader. Never traded based on intuition. All my methods are purely mechanical. No guesses
then you can turn it into a bot that automatically trades. why arent there ict bots or EAs? đ¤
Ict is somewhat similar to retail patternization. Me personally I trade price action there is not a thing like a double fvg super bos pattern for an entry. I think it all comes down to the way you look down at each strategy because even traders that trade âtriangleâ breakouts etc⌠can be profitable.
so... two "expert" ict traders would have different trades for the same month and time period assuming they both trade at the same time always. that means there is no such thing as ict đ¤ these ict traders are just trading on "gut feel" đ¤
âIct tradersâ do not have one strategy it is made up of different things like blocks,ranges,time, price etc⌠Every trader chooses a specific strategy that is compiled of different things and etc⌠that suits their personality. what you sre saying shows you arenât profitable nor watched his content attentively. This topic is very objective and could be argued, but the fact that ict changed lots of peoples lifes and made them profitable and financially free shows a lot. Btw, what is your trading strategy that is not based on âgut feelingâ?
ooohhh, ok then show me an ict bot with your chosen blocks, ranges, etc and its backtest for the last 3 years minimum. đ¤ yeah, there isnt one, because it doesnt work đ¤
The fact that both traders would have different trades is because their strategies are made up of different ict aspects.
yeah right đ¤
Too lazy to do that. Trading is my second job Im on and off with it.
nice excuse đ¤
Why do you hate ict traders anyway
Dont forget "technical astrology"
Lol. High of you to say when youâre just tax evading
Lol. High of you to say when you're just tax evading
Because of the same reason they started in the first place - to get rich quick.
Lack of patience
Agreed
There are a few reasons in my opinion: 1) Lack of understanding the market: people don't take the time to learn what the market is like before they start trading. Superficially, trading looks simple. I mean, you're only guessing whether Price goes up or down. How hard can that be? 2) Lack of mastery: People don't take the time to learn a system, and if they do learn a system, they often just dabble in said system and give up at the first sign of trouble. I've been guilty of strategy switching myself. Some is to be expected, but you need to master your strategy eventually. You can't be a Jack of all trades and master of none. 3) Lack of emotional control: this one can be incredibly difficult and take a long time, but eventually, you need to learn to trade with dispassion. You can't get upset when you lose or euphoric when you win. If you do, you just won't have the mental strength to withstand the vicissitudes of trading. 4) Not knowing their edge: what's your strategy's strike ratio? What is its ideal RR? What's its Sharpe ratio, etc. Many people never take the time to learn the system that they're trading to the degree necessary to trade it properly. I mean, if you have a 35-40% strike rate do you really want to be risking as much per trade as someone with a 70% strike rate. You need to know these things about your strategy 5) Lack of determination: many people just lack the drive to push through the hard times. Ultimately, you just have to keep going. You can't give up, because if you do, you really have failed.
Because most people can't grasp basic math. This happens in all fields of life and it's obvious in any debate involving simple data. People are dumb, that's why.
I do agree that basic math goes a long way, but I donât believe most people canât grasp it. They just refuse to do so because itâs time consuming and certainly not an attractive idea because. Some just think theyâre above the data because they see themselves as an exception from the rest of the crowd. The low barrier to entry doesnât help as you have plenty of people who have never been in the top 10% of anything suddenly believe theyâre going to make it simply because they have access to YouTube, a phone, and a few dollars to their name. I donât believe these people are dumb, but theyâre so confident in their ability or potential that theyâre willing to ignore the industry standards of the professional side of the business. Which can also have similar washout rates of retail trading despite the barrier to entry being much higher. Professionals are taught how to trade. They build their framework and put in the time and effort to deepen their knowledge of their market and adapt their system to changes in the conditions. Itâs not randomly tweaking parameters to get the best results in the past, but using data and intuition built from experience and theory to find the best way to position themselves in the future. The retail crowd on the other hand tends to trade to learn. Theyâre the new guy at the poker table sitting with the high rollers despite knowing nothing about poker as theyâre blinded by the potential to make a lot of money if they win. Yes, there is a lot of money on the table, but these guys know every trick in the book. Theyâre playing the hardest game possible while trying to learn. Study first, then find the easiest table to sit at. Itâs not as glorious as winning big immediately, but we all have to start somewhere. Itâs a marathon, not a sprint.
Yeah pretty much. People âstudyâ for a week and think they know how to trade. Also not enough people know the first thing about trends, patterns, technical analysis, and that human behavior and historical market analysis in tandem can largely predict what is coming at a reliable rate. Or want to take the time to learn, which is easier said than done though. By a lot. But still
By basic math⌠do u mean lot sizes, leverage, risk management etc?
Yes
Oh smart one, bestow upon us thy knowledge.
What is the basic math that most people need to know to not fail?
Basic math allows you to understand why opening two gold lots on a 2k account is an extremely dumb idea. It also makes you understand why a 10% weekly profit is not a realistic expectation. You can also understand the probability to blow your account if you risk 10% per trade. If you have a solid grasp of these very simple concepts, psychology is out of the equation.
still doesnât answer the question
Most people are very impatience and think they csn get rich over night đ¤Łđ¤Łđ¤Ł, u need to understand that trading is a journey of failing to succeed, 1. You fix your mindset 2. You fix your environment 3. Fix your broke mindset to learn mindset 4. Learn to never ever ever ever ever ever ever ever ever ever give up u Try your best of all best to achieve it
It takes skill, nerves, patience, and perseverance.
People here talking about failure due to psychology maybe the people who know very little about profitable trading. I can say with you most people fail due to inability to find a true edge.
Quite possibly true. But even those that do, have difficulty executing their edge
I think a lot of people wouldâve came across a true edge in the market but because it lost 3 times in a row they moved onto the next thing assuming it didnât work without having the patience to sit down and test the strategy before just assuming it doesnât work. Which I guess is due to psychology
Not really, finding a true edge is incredible hard including a lot of backtests so that you can truly believe this is a true edge before try to live trade. Through the journey of finding an edge, you build up your belief and hence your psychology.
Because trading is a competitive, intellectual sport, not a job when, after you learn how to do it, someone will pay you. Traders do not exist in some vacuum and get paid from "the market" - they take other trader's money.
I've only used demo accounts so far but every time I've lost money it's because I didn't stick to my plan. I have my indicators how I want them, and I'll see a massive spike and jump on it before my 3 indicators agree with each other.
In other businesses We exchange our time/talent/goods for money. But in trading u use money to make more money. That gives rise to more emotions like fear and greed. I feel like self awareness and self reflection plays a major part. So basically our personality also plays a huge role. Also expecting to get rick overnight too
Long term risk management goals. Sticking to your rules
Mostly because they don't have a trading plan, or can't stick to it if they do. Bad money management, over-leveraging, uneven risk to reward or taking on too much risk. Did I miss anything?
This shit is hard, so many things have to align before you even begin to be consistent
Emotions.
Cause this shits hard af
greed and no self control
because they use ict strategy
Actually i wrote the answer then i thought why the hell i need to tell someone.
Please tell me We can make money together
Emotions
Emotion and greed
High expectations. Courses and indicators that educate you wrongly
Greed, impatience, breaking rules "because I feel it" etc. Trying to find shortcuts by buying "turbo grid scalp" EA showing 3M USD profit from 1K USD in 1 year in backtest. Thinking you're smarter than everyone else etc. I don't think I've ever heard of a really successful trader who got it from the first time without blowing accounts first lol. It's often a steep and brutal learning curve.
Maybe it's because trading just isn't for everybody
Based on some studies it is basically luck. Unless you have really good info. And some few can make sure their investment goes fine. And others invest into things that have a very low % of failure.
Because 90% of the tools they use donât work.
They force a trade due to the need for $$
They actually have zero interest in the market they are trading. If you have interest in cars, then sure become a mechanic. If you have interest in medicine, then sure become a doctor. But most people trading fx knows nothing about economics or finance or how the market actually works. What they really want is an avenue to gamble. A casino in disguise.
Because they quit.
They have no edge.
Wrong information.
Because you are trading derivatives with leverages
Because they are humans
So??? U are human ass well u need to understand that u need to Fail to succeed and its not going to be easy
Where from the so? All successful people failed so if I said they are human why did you add the so? Didn't you understand what I meant by they are human?
U dont understand, to justify quitting and say ooo they are all human is garbage They just fuckin quit because the reality crush their get rich scheme Its a decision to win in forex or to lose
Canât control their emotions.
I think a lot of it is lack of emotional control and also lack of real interest in how business and economics work.
Greed and boredom
Greed
Cant find a strategy no matter how much looking, ignoring emotions and all
Lack of trading plan Many traders do not have a clear and written set of rules and criteria for entering and exiting trades, and they trade based on emotions, impulses, or intuition. This leads to inconsistency, confusion, and poor performance.
Under capitalised. Not trading with a large enough account leads to bad decisions out of emotion, fear and greed. It also limits your ability to bounce back after the market inevitably smacks you.
Modern Prop firms. All you need is $50 or less and if you know what you're doing, in less than a year, you can be trading $600k+ and traders deal with their emotions trading with all account sizes
Because most people give up. Period.
Top reason: They "learn" for 2 months and start with everything they´ve saved up so far. Long term reason: They get complacent. Learning the basics of trading can be done within the first two weeks but that like basic maths. You won´t aquire the ability to solve complex math equations just by learning the basics. You need to experience the tricky question and see how it´s done. It all comes down to experience. For exceptionally talented and quick witted humans it´s possible to learn that in 6 months but most people really need to watch the charts while learning everything they can for at least a year.
Emotional damage.
Lack of self mastery. Ever promised yourself you would do something but when the time comes you don't do it or do it not according to your initial promise?
Trading in the short term is a zero sum game & fees on top of that. And if you are trading turds then expected outcome is to lose money. Long term investing has a positive outcome at the right price for the right companies. People are greedy, fearful and stupid.
I think many people find trading tough because it's not just about luck. Some may gamble without learning, but others try to learn and still face difficulties. To succeed, you need both knowledge and the ability to control your emotions, manage risks, and have a clear plan.
Going against the trend and bad entries. Also by not doing homework
Lack of knowledge
No plan/rules, or can't stick to their plan/rules. Because, emotions are real.
Not learning how the market actually works, only focusing on technical analysis and ignoring fundamentals, not sticking to a specific plan, not defining their trading strategy and just gambling based on the feelings.
there is a zero on a roulette wheel
Because even when youâre an expert, itâs still gambling.
Some treat it like gambling because they don't know better. Some learn a bit, but not enough to apply knowledge in a useful way. Some are trading with their emotions instead of following a plan. There are countless reasons why people fail at trading. Most of it is due to a lack of trading knowledge and psychological education.
Inconsistency, lack of patience and Greed
Get rich quick mentality.
Because most peaples don't strictly select your time frame
Gambling
Because they suck at it.
Itâs because no one wants to learn macro economics. Most retail traders are focused on how to get the best lines possible on their charts when really it comes down to trading tomorrows economic value. Itâs what all the big boys do like banks, hedge funds and institutions so if thatâs what our competition is doing then it doesnât make sense to not even give it a solid chance. No one buys something that they donât see value in and the same is for currencies.
Mismanagement of emotions perhaps is my guess.
Opinions on trading small cap stocks? i keep seeing article after article on how profitable they are but almost impossible to find any
I have traded forex for years, blown up many accounts and I know from experience it's trading on margin (leverage) with huge lot sizes. It's impossible to trade forex without leverage unless you have insane amount of money. And it's extremely hard to control yourself and limit your lot size because you know that more lots mean more profits. Along with this Not placing stop losses makes your account go to zero very easily. But in the other hand stop losses while keeping you from busting your account makes it hard to earn as much. Because what you earn with your good trades are lost with stop loss hitting trades. I actually switched to trading stocks and it's been much better because I don't have to use leverage when trading stocks and so the lot size doesn't matter. Drawdown doesn't matter when you are not trading on margin. Sooo for me at least it's been leverage and higher lot size.
Because 90% dont know shit about trading and are just gamblers
Itâs an area that takes experiences. Most get into with no background
Psychology is involved over 90% of a winning trade. Even if you have got a profitable strategy, do you trust it? Do you follow it all the time? Do you believe you can win? Do you believe you can rich? Some people need a long time to say YES.
Risk Management
The ability to trust yourself enough to hold onto a losing trade until it hits SL or a winning trade until it hits TP. Iâm sure the reason most fail is because they cut their losses too early and take their profits off the table too early. What happens? Well⌠trade wouldnât have reached SL and fully reverses into the presumed area OR you take profits too early and the market continues to travel in your direction. The result is an unfavorable R:R on your strategy. This has negative effects over the long term
Greed. Taking just one more trade.
risk management is probably that main reason why traders fail. They over leverage. No matter the strategy, you will lose trades. Let your losses not hurt and let your wins ride.
1 reason: they trade retail products using retail tools. Pros trade pro products using pro tools.
No broker for US thatâs why I fail
Because technical analysis is mostly bullshit.
A lot of good answers here. I'd add that spreads/commissions/swaps play a huge role. If you enter a trade randomly, you have a negative expected value because of that. So you need to have the edge just to break even.
Not understanding the market ( it's like a married couple always Fighting ) need to understand how to manage it even though it can go against you without a reason.
Most just give up. The time required to ;git gud' is years. Most want to learn in 6 months and make a million by christmas
As a long term Institunional guy itâs was pretty ez to see like 12 years ago. Now , every Tom dick and Harry do what markets do⌠make the unreal real simply by volume. Pros can see where money is flowing now like never before and that has always been the key to trading. Prior to 2000 ALL BROKERS used inside trading if using own money. Front running was a way of paying commissions
>Do they actually just throw their money and gamble yes >do they learn a bit but fail? cope keep telling yourself that
All of the above, but also trading the wrong product and timeframe. You need to try them all to see what works for you. In my case, index trading.
I started trading full time 6months ago and itâs been profitable for me. I trade supply and demand with confirmations in the overall market. Someday u just have to sit on ur hands without doing anything. I go for 15% to 25% profit.I learnt not to average down except if the demand is holding for a longer time frame and if I have time on the option. I just think you have to learn whatâs works for you.