Why do traders fail?

[ammo]

banks being jpm and gs,to just name 2 , do pretty well hersh, agree that market basics don't change much

 

[Redneck]

Quote (excerpts) from - pretty much every poster in this thread:


biggest problems for traders are burnout, or the market changes and the trader cannot adapt.

-Underestimates difficulty in being consistent

--Impatience

--Lack of knowledge

--Lack of skill

--Wrong mindset

--Doesn't have 2+ years to learn to trade at a reasonable pace (to keep oneself in the game long enough to learn from mistakes)

--Past mental baggage

Traders fail as they fall prey to cognitive biases

The big issue is a lack of skill

Probably because they're not very good at trading

retail traders who don't treat trading seriously

Poor risk management is a major factor that prevents traders from being profitable

Because they trade against the trend.

Traders generally hold on to the trade for too long, winning or losing

Lack of DISCIPLINE

NO.1 reason is: they are too eager to make money .

No.2 reason is the same: they lack of patience

Most traders fail not because of a college degree or lack of education, but making bone headed moves that cost them dearly

Traders fail because they do not have the necessary experience and basic knowledge required to understand the state of the market

Traders fail because of various reasons

They risk money before having an edge.

They think about reward and not risk.

Refuse to take losses.

Add to losers.

Do not let winners run.

Over leverage.

Mostly lack of solid risk management.

Quote from billyjoerob:

the point is that it's not a matter of knowledge, it's a matter of avoiding bad habits. And those habits are very hard to avoid, usually by traders who believe that the problem isn't staring them in the mirror, it's that they haven't hit on the holy grail yet.

Quote from ammo:

Anyone can open an acct and start trading ,just like placing a bet at a table in vegas.

This does not make one a trader anymore than playing your first round of golf makes you a golfer.

This premise needs to be considered when you say most traders fail, because they weren't really traders to begin with.

RN

 

[SteveNYC]

Quote from Qwerty:

So there you have it members of this forum, SteveNYC will continue to engage in shallow behavior, not willing to contribute something of substance to this thread it appears. And will likely continue to insist that i fabricated comments for my benefit.

He finds child like behavior much more amusing than having an intelligent discussion. So please SteveNYC, do this forum some justice and provide us with something of substance. Surely your advanced degrees hanging on your wall could assist you.

I have my advanced degrees in a folder. I am not vain.

 

[toolazy]

Quote from jack hershey:

kut2 is way far ahead of you.

If he posted the meat he uses you would whine about not understanding him.

Big banks do not make much of the money offered in trading markets.

you are right. I am far behind. too lazy to finish the puzzle. other things in life take precedence right now...

if banks take little as you say, who is the generous donor ? There is only limited amount available for taking.

 

[jack hershey]

Quote from toolazy:

you are right. I am far behind. too lazy to finish the puzzle. other things in life take precedence right now...

if banks take little as you say, who is the generous donor ? There is only limited amount available for taking.

Fees and commissions.

What would the growth of the global econometrics be like if banks practiced integrity.

The FI industry knows the government cannot keep up with proper regulation. Banks take advantage. Bankers are "loaned" to gorernment to mess it up.

Imagine any other industry using multiple insurance on one entity. Imagine creating insurance for faulty products.

It will take us years and years to get out of this Depression.

Read this weeks Bloomberg/BusinessWeek.

 

[ChinggChilla]

For me, its when I get emotionally attached and try to chase losses

 

[Jason Rogers]

Quote from ammo:

in any profession, there is a certain amount of experience required to get past entry level, and the more experience, the higher you move,traders should stay at entry level sim trading until they are successful, then promote themselves to real trading,at that point they should have a very small loss max per day,week, month to adhere to.

Tight rope walkers start on a rope 1 ft off the ground and slowy raise it, when it gets high enough to get hurt if falling, they use a net,no one joins the circus,climbs the ladder and walks a rope,before passing several failed attempts followed by several successful crosses
Anyone can open an acct and start trading ,just like placing a bet at a table in vegas. This does not make one a trader anymore than playing your first round of golf makes you a golfer. This premise needs to be considered when you say most traders fail, because they weren't really traders to begin with.

This is a great point and well put. I particularly like what you said about how playing a round of gold doesn't make you a golfer. I know this from personal experience.

 

[EvOTraderV2]

they fail because they rack-a-disciprine

 

[Wide Tailz]

Quote from Tradester123:

Guys, i am a student currently in the process of carrying out research fro why traders fail

Why focus on the process that causes an undesired rezult?

I'll tell you one secret to trading success:

Be greedy when others are fearful and fearful when others are greedy.

:eek:

 

[Faisal_Danka]

Bulls make money, bears make money, pigs get slaughtered.

In other words, most traders do not fail. Those who fail are traders-wannabe, who do not go through any training, trials or experience of trading and they just start trading and speculating by opening an account with some money and then hoping that they will be successful. Wishful thinking indeed.