Why do traders fail?

JaiSreeram said:
A lot fail because they expect it to be easy. I run into a lot of people that just think stocks equal mega money. They see movies, shows, and such all glamorizing the rich lifestyle of Wall Street, but it’s not just easy money. It’s actually a real job that requires substantial research.
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A friend of mine recently told me about a mentor he connected with to learn day trading (scalping, specifically). The guy trades live right in front of you every day so you can see what he's doing in real time. He posts his trade logs on his site, has nicely profitable results every day. He has a verifiable 5 year track record of success. His fee is negligible considering what you get.

My friend told me that only a tiny number of traders who sign up become successful traders.

Why?

Because it requires a lot of work. The preparation and initial trading plan development process takes four months or more. No trading real money until at least 7 months in at the earliest.
 
NoDoji said:
A friend of mine recently told me about a mentor he connected with to learn day trading (scalping, specifically). The guy trades live right in front of you every day so you can see what he's doing in real time. He posts his trade logs on his site, has nicely profitable results every day. He has a verifiable 5 year track record of success. His fee is negligible considering what you get.

My friend told me that only a tiny number of traders who sign up become successful traders.

Why?

Because it requires a lot of work. The preparation and initial trading plan development process takes four months or more. No trading real money until at least 7 months in at the earliest.
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Which trader is that?
 
http://protradered.blogspot.com/


Quite consistent and impressive results.

3/26 ES 10 pts
3/21 ES 10 pts
3/20 ES 25 pts
3/19 ES 30 pts

Plus other gains from CL or 6E.

"YOU CAN WATCH OVER MY SHOULDER AS I TRADE IN THE LIVE MARKET. I mention the entry price, the stop, the targets and exit." quoted from the site.


Trades are called in real time?
If it is, this guy is the real guru.
 
jl1575 said:
Trades are called in real time?
If it is, this guy is the real guru.
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According to my friend you actually watch him trade live in real time...better than calls. But the point of my post wasn't about guru-ness, it was about how becoming a consistently profitable trader takes a lot of time and hard work, which is why db's students aren't "killing it" yet.
 
Jason Rogers said:
Hi Tradester,

Poor risk management is a major factor that prevents traders from being profitable. For example, the chart below shows the results of a data set of over 12 million real trades conducted by FXCM clients worldwide in 2009 and 2010. It shows the 15 most popular currency pairs that clients trade.

What_is_the_Number_One_Mistake_Forex_Traders_Make_body_percent_trade_profitable.png


The blue bar shows the percentage of trades that ended with a profit for the client. Red shows the percentage of trades that ended in loss. For example, in EUR/USD, the most popular currency pair, FXCM clients in the sample were profitable on 59% of their trades, and lost on 41% of their trades.

So if traders tend to be right more than half the time, what are they doing wrong?

What_is_the_Number_One_Mistake_Forex_Traders_Make_body_trade_pips.png


The above chart explains it. In blue, it shows the average number of pips traders earned on profitable trades. In red, it shows the average number of pips lost in losing trades. We can now clearly see why traders lose money despite being right more than half the time. They lose more money on their losing trades than they make on their winning trades.

Let’s use EUR/USD as an example. We know that EUR/USD trades were profitable 59% of the time, but trader losses on EUR/USD were an average of 127 pips while profits were only an average of 65 pips. While traders were correct more than half the time, they lost nearly twice as much on their losing trades as they won on winning trades losing money overall.

The track record for the volatile GBP/JPY pair was even worse. Traders were right an impressive 66% of the time in GBP/JPY – that’s twice as many successful trades as unsuccessful ones. However, traders overall lost money in GBP/JPY because they made an average of only 52 pips on winning trades, while losing more than twice that – an average 122 pips – on losing trades.

That data above are from a series of studies into trader profitability conducted by the analysts at DailyFX. I hope you'll find the information useful for your project.

Good hunting!

Jason
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This just proves that people do the opposite of "let your profits run, cut your losses short" and that people want to be right
 
NoDoji said:
A friend of mine recently told me about a mentor he connected with to learn day trading (scalping, specifically). The guy trades live right in front of you every day so you can see what he's doing in real time. He posts his trade logs on his site, has nicely profitable results every day. He has a verifiable 5 year track record of success. His fee is negligible considering what you get.

My friend told me that only a tiny number of traders who sign up become successful traders.

Why?

Because it requires a lot of work. The preparation and initial trading plan development process takes four months or more. No trading real money until at least 7 months in at the earliest.
More...


Can you let me know what trader that is ?
 
NoDoji said:
According to my friend you actually watch him trade live in real time...better than calls. But the point of my post wasn't about guru-ness, it was about how becoming a consistently profitable trader takes a lot of time and hard work, which is why db's students aren't "killing it" yet.
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Of course, he is the one who established a strategy and mastered it, so he could achieves such consistency. For the followers, it would be a total different story for each one. There are a lot of nuances and context that are very hard to explained fully to the followers even the mentors wanted to. The best way to trade the market is to develop your very own one and make tremendous effort to master it.

He is quite a quick scalper though, look at the 3-20 ES 25 pts gain, it was done in one hour from 8:30 to 9:30 in an incremental 1.25 to 2.5 pts gain in multiple trades. The consistency is quite impressive and he risked very little from what data posted on the site..
 
Wow so much misinformation and nobody really has a clue! That is what I love about this site... Many laughs!

Just assume the market hates you and wants to kill you.... And that is not far from the truth!

Hail Satan
 
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