The Uncomfortable Truth: 90% of the traders lose.

[murray t turtle]

Maybe you can help us by providing a checklist?

%%
ACTUALLY he has somewhat;
his old journal.
ANOTHER disadvantage of day-trading;
even any trend , or very good trend ,superTrend has some easily goofed+ plenty of loss days.
And that's before bid\ask spread + slippage
But stock-ETF market is not a zero sum game @ all;
+ the people that by + sell iron cash , all those kind of businesses that do business daily, tend to outperform daytraders by a wide margin, for many decades .

 

[SimpleMeLike]

90% of traders lose but do we know why?

The reason is purely lack of information on factors that have an impact on the trade and price movements.

The world of forex trading might seem complex, but at its core, it’s about understanding how one currency compares to another.

Price movements in the currency pairs are influenced by economic indicators, market sentiment, and geopolitical events.

The Starting Point: What Does EUR/USD at 1.1000 Mean?
When we see EUR/USD trading at 1.1000, it tells us the exchange rate between the Euro and the US Dollar. Therefore, to buy 1 Euro (base), you need to spend 1.10 US Dollars (quote).

Scenario 1: Eurozone Reports Higher Than Expected GDP Growth (Good News)

Why It’s Good News -> When the GDP growth exceeds expectations, it’s a clear signal of economic strength.

Higher GDP growth means the economy is expanding more rapidly than anticipated, reflecting higher consumer spending, increased industrial production, and more job creation.

The Effect -> This upswing makes the Euro more attractive to investors as a stronger economy suggests better returns on investment in Euro-denominated assets.

As confidence in the Eurozone’s economy increases, so does demand for the Euro, driving up its value on the global stage.

Simplified Example -> Following the announcement of unexpectedly high GDP growth, optimism surges. This boosts the EUR/USD price from 1.1000 to 1.1200. Now, 1 Euro is equal to 1.12 US Dollars, showing that the Euro has strengthened against the Dollar.

Scenario 2: The Eurozone’s Economy Grows Less Than Expected (Negative News)

Why It’s Negative News -> If the Eurozone’s economy isn’t growing as much as people thought it would, it suggests that the Euro might not be as strong in the future. Lower growth can mean fewer jobs, less income, and overall, a weaker economy.

The Effect -> It can make the Euro less attractive to investors who might start selling their Euros in exchange for a currency from a stronger economy. This selling lowers the Euro’s value.

Simplified Example -> Following the news of slow economic growth, the demand for Euros decreases. People start selling their Euros, and the price of EUR/USD drops from 1.1000 to 1.0800. Now, 1 Euro is equal to 1.08 US Dollars, showing that the Euro has weakened against the Dollar.

However, this might not always be the case. Favorable news for the Euro doesn’t always result in an expected rise in the EUR/USD.

Want to know more? Comment on the thread and let's discuss and learn together!

Hello Aaryan Bhatia,

I am not sure why traders lose money. Because every case is different.

You would have to interview 10,000 traders to understand why 90% lose.

My answer is 90% lose money trading because those 90% do not know how to make money trading.

 

[deaddog]

My answer is 90% lose money trading because those 90% do not know how to make money trading.

Finally an explanation that everyone can understand!!!

 

[SimpleMeLike]

Finally an explanation that everyone can understand!!!

Hello deaddog,

There is no other explanation.

The 90% of traders lose money because they have money to lose and they do not know how to make money. Period.

There is nothing else to say on this topic.

And the 10% who know how to make money are not sharing how they trade to feed them and their family.

So the 90% of traders losing money, was not able to figure out how to make money, so they lost it.

It is what it is. Everybody can not be a winner in the trading business. Someone must lose.

 

[savoir]

Hello deaddog,

There is no other explanation.

The 90% of traders lose money because they have money to lose and they do not know how to make money. Period.

There is nothing else to say on this topic.

And the 10% who know how to make money are not sharing how they trade to feed them and their family.

So the 90% of traders losing money, was not able to figure out how to make money, so they lost it.

It is what it is. Everybody can not be a winner in the trading business. Someone must lose.

SimpleMeLike, your logic and sentiment are hard to disagree with.

In a zero-sum game like the derivatives markets, the more losers there are the easier it is to extract profits from the game. Picture how difficult it would be to make substantial money if the percentages were the other way around: 90% winners taking from 10% who are losers. You'd be better off flipping burgers for $20 per hour.

I especially like that you pointed out that losers have money to lose. Losers with lots of money to lose in their accounts are the best for markets.

I use the friendlier term "fish" in place of "loser." It is very profitable to study and understand how the fish think. Gathering places such as this one are quite conducive to that end even though virtual. I know you don't like to read but when I see a book or course that is often mentioned I usually get it and spend a weekend reading. Tom H's Biggest Loser took half a Saturday. Al Brooks's trilogy took me three weekends to go through and I still can't play the violin.

Cheers.

 

[SimpleMeLike]

SimpleMeLike, your logic and sentiment are hard to disagree with.

In a zero-sum game like the derivatives markets, the more losers there are the easier it is to extract profits from the game. Picture how difficult it would be to make substantial money if the percentages were the other way around: 90% winners taking from 10% who are losers. You'd be better off flipping burgers for $20 per hour.

I especially like that you pointed out that losers have money to lose. Losers with lots of money to lose in their accounts are the best for markets.

I use the friendlier term "fish" in place of "loser." It is very profitable to study and understand how the fish think. Gathering places such as this one are quite conducive to that end even though virtual. I know you don't like to read but when I see a book or course that is often mentioned I usually get it and spend a weekend reading. Tom H's Biggest Loser took half a Saturday. Al Brooks's trilogy took me three weekends to go through and I still can't play the violin.

Cheers.

Hello savoir,

Thank you for the response.

Question for you please.

1. Can you please recommend me one book to read about trading that is Guaranteed to pay my mortgage payment of $2000 for the month of May 2024 instantly after I am done reading the book?

2. Do you promise to pay my mortgage of $2000 if after I am done reading the book and I do not instantly make $2000 to pay my mortgage of May 2024?

Please provide precise answers to questions 1 and 2.

Also please do not recommend me a trading book, if the answer to #2 is No.

Thank you.

 

[Overnight]

90% of traders lose but do we know why?

The reason is purely lack of information on factors that have an impact on the trade and price movements...

Want to know more? Comment on the thread and let's discuss and learn together!

100% of people who post this shit are 100% of the people who do not trade and who make up statistics like this. Talking out of their ass, with no trading history of their own.

They are fodder for folks like me who challenge, and they then go hamina hamina hamina!

Have any stats to back up your bullshit besides "because I said so"?

 

[savoir]

Hello savoir,

Thank you for the response.

Question for you please.

1. Can you please recommend me one book to read about trading that is Guaranteed to pay my mortgage payment of $2000 for the month of May 2024 instantly after I am done reading the book?

2. Do you promise to pay my mortgage of $2000 if after I am done reading the book and I do not instantly make $2000 to pay my mortgage of May 2024?

Please provide precise answers to questions 1 and 2.

Also please do not recommend me a trading book, if the answer to #2 is No.

Thank you.

SimpleMeLike,

Here are my answers.

1. I have not come across a book about trading that guarantees making money instantly after reading it. At least not one that can be taken seriously. Therefore, I have no book to recommend that would meet your requirement.

2. Since I have no book to recommend that would fulfill your requirement in your first request, I am precluded from making a promise to pay your $2000 mortgage payment, although it is a very reasonable mortgage.

Trading profitably does not happen by reading a book or a bunch of books. Trading profitably occurs through building the mind by obtaining knowledge, skill and experience. Books can help with obtaining knowledge but can also lead the mind astray with myths and conventional wisdom.

In a zero-sum game, you want to exploit the fish and not be a fish. If you want to catch fish, it's useful to know what the fish are feeding on.

Best regards.

 

[Wide Tailz]

It's obvious the money has to come from somewhere, so just find the biggest loser and take the other side. For example, the current federal deficit is inducing a yuuuuuge monetization binge through peripheral actors, to try to hide it, but the ownership of a few major companies is clearly being bought at higher and higher prices, so whomever is creating all this new money will control the leaders in the end. Currently it's AI, but looks to be rotating out of harware companies into the higher order producers of content creation, or whatever.

To catch this free money, scan for the 100% winners over the last 12 months, wait for a horizontal triangle ("continuation pivot"), and BTFATH.

A great great book is "how to trade in stocks" by Jessie Livermore which sums up his lifetime of actual usable knowledge in a very short volume - not to be confused with his memoirs "reminiscences of a stock operator", which chronicles his failures. It's first lezzon is on risk management. This is the foundation of it all!

 

[SimpleMeLike]

SimpleMeLike,

Here are my answers.

1. I have not come across a book about trading that guarantees making money instantly after reading it. At least not one that can be taken seriously. Therefore, I have no book to recommend that would meet your requirement.

2. Since I have no book to recommend that would fulfill your requirement in your first request, I am precluded from making a promise to pay your $2000 mortgage payment, although it is a very reasonable mortgage.

Trading profitably does not happen by reading a book or a bunch of books. Trading profitably occurs through building the mind by obtaining knowledge, skill and experience. Books can help with obtaining knowledge but can also lead the mind astray with myths and conventional wisdom.

In a zero-sum game, you want to exploit the fish and not be a fish. If you want to catch fish, it's useful to know what the fish are feeding on.

Best regards.

Good Morning savoir,

Thank you for the response. I appreciate it.

This why for me reading trading books is a waste of time and effort, because there is no guarantee after I read it, I can trade to pay my mortgage of $2000 per month AND make a +$1 million dollars within 1-3 years.

IMO, reading any book that does not guarantee me money in pocket INSTANTLY after I read it, is just flat-out stupid and dumb. Especially in the trading business, because the author is just making up stuff to make a sale to customers and a Liar and Scammer if he/her does not post a track record on the first page of the book of his/her track record.

So why read trading books, its stupid to me. I have not read a book since college and I never ever will, unless it GURANTEES me money in my pocket.

For ME, I rather just take my chances with 1 chart, buy button and sell button each day. It is much more liberating and controlled then reading some book.

The Chart and price, will NEVER EVER lie to me, I have the ultimate control. If I read trading book, then I give ALL my control to the author of the book. And the author of the book may be a Liar and Scammer.

I only watch documentaries on youtube about the Italian-American Mafia and the Medallion Drug Cartel, and apply their business model towards my ES trading. Plus its good entertainment.