Is this the reason why so many fail?

True. But that is understood. After all if the system is flawed risk management is not going to save the trader. The trader has to be able to make profits first and foremost, if he can't do that all the risk management in the world won't help him.
 
Quote from The Expert:

Correct Risk Management is of the utmost importance, and is a prerequisite for successful trading, but, will not in itself make a trader successful.

How many people have lost most, if not ALL , of their trading capital after still using a strict money management approach!

A lame horse will never win the race, no matter how good the odds are.

TE
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Perfect.

A good understanding of how the market operates is key. So is a mentor who knows what they're doing. That will take you over the hump.
 
Quote from jdeezero05:

but no money management system can make a system with negative expectation a winner.

+1. But so many are convinced to the contrary

The reality is at the sum most simply are not trading a system with positive expectation after transaction costs.

+1 also
 
Quote from afto:

To think differently is to think differently. Nothing more, nothing less, neither correct nor incorrect.
Do I need to know why new grass will grow in place of old grass?
No.
Do you believe it is worthwhile to understand the reason for everything?
If you do, that is fine and I'm happy to learn from you.
However, without appreciation, all the knowledge in the World is merely a booby prize.
JMO
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A wise man LEARNS from the mistakes of OTHERS:D

TE
 
Quote from athlonmank8:

Perfect.

A good understanding of how the market operates is key. So is a mentor who knows what they're doing. That will take you over the hump.
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Sadly, for most, a real mentor is very hard to find, as they are nearly all just interested in taking money from people:eek:

The Expert, on the other hand, is,

"The only coach/trainer that does not charge a fee":D

TE
 
Quote from Kosharie:

I was talking to my futures broker and he told me that 90% of their clients take profit the moment they see it.
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...food for thought...:cool:
 
Quote from afto:

80..90..95% failure rate.
The numbers don't make sense if you believe that there are only two results for a trade - win or lose and therefore profit or loss.
A monkey tapping orders from a keyboard should have a better chance of success even accounting for commission and slippage.
My explanation;
The high loss rate is primarily due to poor money management.

Trader A has a relatively high batting average (in terms of win/loss ratio) but hasn't learnt to capitalize on his winners
Trader B has a lower than average batting average and is unfamiliar with the concept of capitalizing on his winners.
Trader C also has a lower than average batting average (perhaps less than 30% W/L ratio) but has learnt to push his winners.

Who wins?
Trader B is soon out of the game. He might return but unless he's modified his behavior then chances are that he suffers the same fate, repeatedly.
Trader A stays in the game and might even make a buck or two but he tends to fight the market and the end result is usually borderline at best.
Trader C is much more likely to be and to stay in the 5% class because he has learnt to do what the majority of traders have most difficulty with.

Conclusion. Its not so much about picking the winners but rather its about riding the winners.
JMO
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================
Thats part of it Afto;
another big part of it, is simply running a trading business-is amoung the hardest of all businesses[long term, not just a few years]:cool: Younger they are the more they use leverage/fail.

Have run businesses most all my 55year old life.

I just reread part of Jack Schwagers old top trading book;
Stanley D, noted for his saying ''it takes courage to be a pig'' & wrote Citibank making international loans ''like crazy'' , so he was bearish from decades ago.....
So there is a balance between that ''courage to be a pig'';
and LEH BSO, MER/ banks belly up/ bankrupt.:cool:
 
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