My guess as to why traders fail

[Kosharie]

If you only have $5K and your determined to play this game...Discipline is the single most important factor.

Think of it as poker. You wouldn't play a high anti/blind game with a small stake. There are are smaller games. You can use at least close to proper risk ratios with $5K in mini grains and penny stocks.

The discipline is:
First, dedicate yourself to building your account over time instead of overnight. You may get lucky and hit an early homerun but don't let that possibility sway your decision making too much.

Second, do your Due Diligence! Do your homework.

Third, don't try to out guess the market. Sit on your hands and wait for situations to develop. Don't be a day trader. The point is to build your account, not experience endorphins. (unless that is your goal which is probably more common than I would care to believe).

I like penny stocks because you get a big bang for your buck when they move and the company's are usually small enough that you can get on the phone and develop a relationship with one of more of the officers. It is possible to find small companies that are about to break out big.
It happens all the time.

www.stockhideout.com

and

www.onlinetradersforum.com

both have excellent penny stock boards.

Good luck.

 

[Dackster]

Quote from shark:

I'm thinking that the high failure rate among retail traders can largely be attributed to the following.

-There is so much going on in the world at any given moment, that it becomes impossible to keep up with it. There is literally more news coming out at any given minute than one could even hope to read. The news doesn't even need to be relevant to have an effect. Nearly anything can have an effect on market sentiment. This makes otherwise clear market trends look like random nonsense.

Price action trading seems simple enough until one has to take into account the 500 different things that just happened in the span of 15 minutes.

It appears very important to reduce the number of variables that affect an asset's price. Hopefully someone else has tackled this problem. I just don't want some random irrelevant bullshit from South Korea or whatever to give me a hard time.

Thanks.

Emotion.

How does the average retailer eliminate emotion?

The average retailer trades TA, and there is a myriad of technical aspects on offer.

Too much information.

The average retailer will bounce from one idea to another, because nobody is telling him/her that thier first idea was correct, they just had to stick with it and refine it.

The average retailer is really up against it, not only are they taking on something that has no guarantees, they also do not know what they actually want.

This is the retail paradox.

To make it as a retailer, you really have to be good, a born trader.

 

[ammo]

even a future born trader has to have info, you just need to find a combination that works,it takes time

 

[gianthorn]

Quote from Fireplace:

'Weirdo', maybe if you didn't post your slop in every single thread on this website, I wouldn't have to see it and make fun of you.

Hey 'sooky' why haven't you posted your charts and platform? something to hide? or nothing to show?
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Hmmmm.. I can't hear you 'sooky'

He ran away in another thread as soon as I asked to see a little proof that he trades.. if only I had known earlier that was all it took to get rid of him


Burnt beyond recognition

 

[piezoe]

Quote from BartS:

Discipline is it.

It is a vague word but lack of discipline is responsible for all the biggest issues a trader can face:


-lack of plan.
-lack of followthrough with plan.
-cutting winners before targets are met
-not cutting losers timely
-entering trades in chopzones
-chasing
-not waiting for pullbacks
-shorting bottoms and buying tops
-averaging down

Days I am 100% focused I make money 90% of the time.
Days I try to be cute I take flats or lose.

It's a mental game, and discipline is the only thing there is absolutely no way around.period.

Very well said, and very true.

 

[Trader666]

Traders fail if/when they don't think in essentials.

 

[jalee25]

that must be the 5th time that same post was quoted... nice job, bart

 

[jalee25]

Quote from Trader666:

Traders fail if/when they don't think in essentials.

traders also fail if they are too vague in their trading plan.. what is essentials ???

 

[juliawaq]

julia here mcpd “It seems every day some new and up coming superstar day trader (ok wannabe superstar day trader) asks me the same questions. It always strikes me as funny that everybody always seems to have the same questions when to me the answers just seem so obvious.

 

[gianthorn]

Quote from Fireplace:

'Weirdo', maybe if you didn't post your slop in every single thread

Hey 'sooky' why haven't you posted your charts and platform? something to hide? or nothing to show?
--------------------------------------------------------------------------------



Hmmmm.. I can't hear you 'sooky'

He ran away in another thread as soon as I asked to see a little proof that he trades.. if only I had known earlier that was all it took to get rid of him


Burnt beyond recognition