If the odds are 50/50 why do most people lose ?

Try this: Flip a coin with a friend. Each toss is a $1 bet. you start with $4, your friend starts with a $1,000. Let us know how much money you end up with.
 
What Illiquid said...


And to compound it

People are their own worst enemy

Classic examples

Trader puts on a winning position – gets nervous and exits quickly

Trader puts on a losing position – and for a myriad of reasons can not exit to save their life, or to preserve capital (which is really the same)



I have met the enemy, and the enemy is me

RN
 
How many times have you been stopped out on a trade that continued in your direction? Money management is key.
 
Quote from spd:

How many times have you been stopped out on a trade that continued in your direction? Money management is key.
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MANY TIMES.

How do I fix this ? How do I work may way out of this ?



Quote from jedwards:

Most traders are risk adverse with their profits and risk-taking with their losses. I read this in Market Wizards.

Basically that means, when you have a profit, you are more apt to cut the trade short, whereas if you have a loser, you are more apt to risk your current losses in "hopes" that it will recover.

Thus, your losses will always be bigger than your profits.
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Yes thats correct too, alot of times once I see green I take profits waaay too quickly, and when I have a loser I give it " more room" than I let the winner, only because I dont want my winner to turn into a loser...so I lower my Stop Loss rigorously to B/E then to minimum 1 tick... then to some s/r that gets taken out..


Any books that I can read to on the money management part and whatever else Im lacking ?
 
Quote from neveral0ne:

MANY TIMES.

How do I fix this ? How do I work may way out of this ?
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You know what you are doing wrong

How do you propose to fix the problem.

I'd suggest a set of rules that you can make yourself follow. If nothing else try and lose as little as possible.
 
Im gona start out by setting a profit target always 2 or 3 times more than my SL .. see how that turns out for the first week.

This is really fun to "learN" and discover oneself....the books dont lie....
 
Neveral0ne

You can take the next step in one of two ways

Go External – and look for better setups, better money management, some sort of fix all answer… which ultimately you’ll find doesn’t work

or

Go Internal (where the real answer lies) – and basically figure out how to rewire yourself… You need to become more rigid/ disciplined is some aspects, more open and flexible in others




How to do this – lots of objective introspection… lots of identify your shortcomings, lots of forgiving yourself, lots of communication with yourself, lots of trial and error, self discovery, growth, lots of stumbles AND getting back up – all with yourself

No doubt it is a heck of a lot hard work – but it’s the only way I know of

I describe this as a chasm all traders face – build a bridge and come across


Successful Journey Sir
RN
 
Well sometime,s you hold a trade preety long and it comes back and you say wtf i should have taken profit!!!!
The market will try to scare you , weak hands against strong hand you need to read that article very nice
 
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