Why do traders fail?

Learning from your losses. I mean, really learning. Not just "noticing" something. If you can keep learning, you can keep improving. The trick is sticking to the rules you built from the learning process.

I noted in my journal that I'm entirely convinced the great traders don't have a special intelligence but rather a special ability to learn from their mistakes in earnestness where the rest of us don't. Also, I think some give up before they get over the learning curve. It takes serious guts to lose a pile of money and then go back in for more. Unfortunately, this is almost mandatory in the beginning.
 
maxinger said:
This statement is interesting :
90% of the stocks are univestable and scams in the OTC market and Nasdaq. 90% of the losing investors buy the 90% worthless scam stock


It can be rephrased more positively as :
90% of the stocks are univestable and scams in the OTC market and Nasdaq.
10% of the winning traders earn tons of money trading these 90% worthless scam stock.
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Yeah, that guy Steven Dux makes about $300k per month shorting those crap stocks that trade between $1-$10
 
Sonny2010 said:
Learning from your losses. I mean, really learning. Not just "noticing" something. If you can keep learning, you can keep improving. The trick is sticking to the rules you built from the learning process.

I noted in my journal that I'm entirely convinced the great traders don't have a special intelligence but rather a special ability to learn from their mistakes in earnestness where the rest of us don't. Also, I think some give up before they get over the learning curve. It takes serious guts to lose a pile of money and then go back in for more. Unfortunately, this is almost mandatory in the beginning.
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this is the whole truth. i never really took trading seriously as i would with other business. Even though it was something that wiped me out number of times i still played it like you would in the casino. Never really learning anything from my mistakes. But then i was lucky to have a mentor and i saw how real traders traded. That gave me motivation and understanding that you can make a comfortable living day trading. Looking inwards, realized my mistakes even though i am still a noobie, but these days my trading has improved a lot but long way to go.
 
themickey said:
Here's something that's pc incorrect to say, kinda a bit jarring, but I'll spit it out anyway.
If you have a mental asylum with patients and really they are long term incarcerated because neither doctors, specialists or nurses can turn them around. There really is no hope or future for them.
If that's the case and it's reality, then its probably fair to say some people cannot be cured to become traders, it's impossible, you could throw every training program at them and they would remain clueless.
The unfortunate reality is, we most often cannot recognize our own shortcomings.
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Fordewind said trading made him dumber.......how can that be? https://www.elitetrader.com/et/thre...ersonality-changed-because-of-trading.330991/
 
padutrader said:
what you say is very interesting.
after a very long time, i have come to realise that i,like most people, form opinions.

if the market goes up strongly and then turns,i used to wonder why it is not going up,what could the reason be!!!
if the market should go up but it goes down....the trend has changed.
ignore at your peril.
it is better to lose your opinion then your money
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It is called a reversal. Often happens on a 5 min chart that has a strong second bull leg up but in a trading range. It is a test of the top of the range and can get sucked up there quite fast. Then suddenly reverses back into the range and races to the bottom. Most BO attempts at the top or bottom of a range fail. Novice traders will be going long and they most likely should be shorting and shorting more adding to their position as price goes up. At the bottom of the range novice traders short what appears to be a BO but odds actually favor going long AND averaging down as price continues south before reversing north. Why? Because 70% to 80% of BO from a range fail. Sure, sooner or later, one of the BO attempts will succeed. Then if a trader finds the market against him, exit, and double up in the opposite direction.
 
Visaria said:
It has to work like this. Money must flow from unskilled traders to skilled ones. It's the way of the universe. It makes sense because that's the way it should be . Effort and ability should be rewarded. Laziness and lack of skill should not.

When you were at school, the guys and gals who had ability and studied hard, received the top grades. Imagine how it would be if the guys and gals who did not study hard and had little ability received the top grades! Common sense.
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Some guys seems like all they studied was the gals and still did good! How is that?
 
I will fail as a trader when the bull market ends. I am just not smart enough to know when the bull ends and the bear starts.
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That there is the exact reason why losers fail.
They confirm negativity as the norm.
You get from the markets what you expect.
Surround yourself with positive people and positive thoughts.
 
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