Why do traders fail?

[CSEtrader]

The shorter the timeframe the smaller your chances are to make money. The potential, which is the difference between the High and the Low, decreases with the decrease of the timeframe.
The net profit is the difference between high and low and you have to substract slippage and commissions. Slippage and commissions are always the same per trade, no matter how big the move was. Which means that percentagewise the cost will increase if the timeframe decreases. Result is lower profits, or even losses. That's also the reason why daytrading is more difficult then trading on longer terms.

Agree, but before you reach there if one has started with really small capital, you must take profits on crumbles on small timeframes, where you can cover with your tiny stop-losses even eventual spikes, untile you will accumulate sufficiently to go higher.
Correct?

 

[CSEtrader]

just go to any regulators website....there will be list of brokers who are approved....

Yes, sure.
But before you know that there are regulators and their websites, you have to know about that. We as millions of Russians and Europeans, back in 2008 and probably still now, have no idea about this type of checkup.
Again UBS Bahamas and Credit Suisse Bahamas were not registered with Finra, even if offering to trade American securities, whoever could imagine that?
And look on this poster Dennis55, if I am correct about his name, 55, his brokers were registered on Malta and Cyprus, do you think he knew the difference before missing his capital?

 

[padutrader]

Why think about them?

agree.....it is a competitive world..... so why hate your competitor,learn from him!!!!

if you are trying to take someone else's money-it is a zero sum game-why hate some one who is doing as you do?

 

[padutrader]

Agree, but before you reach there if one has started with really small capital, you must take profits on crumbles on small timeframes, where you can cover with your tiny stop-losses even eventual spikes, untile you will accumulate sufficiently to go higher.
Correct?

i think so....
also i want to use all the time i have,.... to make money,use time efficiently, and not sit for long periods..... doing nothing because that develops bad personal habits like drinking to pass the time

 

[padutrader]

Please stop fulfilling the Third World stereotype.

why do always try to put down a person..... who is already down?

 

[padutrader]

i had trouble trading for twenty years since i was not clear whether the market was ranging or trending.......
also it is critical to recognise when a trend move was in a larger trading range or channel......this is far from easy

 

[padutrader]

trading with not enough capital is another problem.....especially if you are trading 5 min because the market will whipsaw violently and if you are over leveraged you are badly hurt.

i was considering having 75 usd for every .01 contract size or 7500 usd capital for one standard lot size in eurusd:i think this will give enough leeway not to be forced out of a position and the seeing the market go your way......
want to experiment with it

 

[padutrader]

if you do not have risk management in your trading, you might as well pack it in!

yes that is critical......but you have to make 'good' high probability trades and not rely upon your stop to compensate you for sloppy trade craft

also you have to be well capitalized....i have come to realise that....in my 10 years of trading forex the average capital i have used is around 200 usd.

i have now decided to deposit 7000 usd trade one standard lot and scalp eurusd using 5 min.

20-30 pips a day means 200-300 usd: good money where i come from enough to have a comfortable life style

It is also important to trade high probability setups.and trades have to be technically logical:entering in a bull move when a good bull bar is formed,with stop below the low ,adding/entering long when the high of a down bar is taken out...with the stop being below the down bar low...are two examples of simple set ups which are logical and offer logically placed stops

 

[padutrader]

Most traders know direction of the market....but they still lose money:because they know not how to manage the trade.
Seykota said:'if you cannot measure it you cannot manage it'

measuring the parameters of the trade is the challenge:the market may be over bought but how much over bought is it? if you cannot measure it you cannot manage it!

if you cant manage it, you cannot control it.....traders are always out of control...and that includes me for the last ten years.

but i am understanding what i have to do,now

 

[Karin42]

Traders fail because they are not patient enough to learn what it succeeds to pass. You can never win if your greed and ego overcome your desire to learn and study the market movements. Money management is also key if you are to succeed as a trader