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Author Topic: The Main reason Why Forex Traders Fails.  (Read 18263 times)

Offline marcopiccollo

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Re: The Main reason Why Forex Traders Fails.
« Reply #120 on: May 24, 2019, 11:03:09 AM »
Most currency traders start out looking for a way to get out of debt or to make easy money. It is common for forex marketers to encourage you to trade large lot sizes and trade using high leverage to generate large returns on a small amount of initial capital.

You must have some money to make some money, and it is possible for you to generate outstanding returns on limited capital in the short term. However, with only a small amount of capital and outsized risk because of too-high leverage, you will find yourself being emotional with each swing of the market's ups and downs and jumping in and out and the worst times possible.

You can resolve this issue by never trading with a too-small amount of capital. This is a difficult problem to get around for someone that wants to start trading on a shoestring. $1,000 is a reasonable amount to start off with if you trade very small (micro lots or smaller). Otherwise, you are just setting yourself up for potential disaster.

Offline BrandonHolly

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Re: The Main reason Why Forex Traders Fails.
« Reply #121 on: June 05, 2019, 10:44:47 AM »
Most currency traders start out looking for a way to get out of debt or to make easy money. It is common for forex marketers to encourage you to trade large lot sizes and trade using high leverage to generate large returns on a small amount of initial capital.

You must have some money to make some money, and it is possible for you to generate outstanding returns on limited capital in the short term. However, with only a small amount of capital and outsized risk because of too-high leverage, you will find yourself being emotional with each swing of the market's ups and downs and jumping in and out and the worst times possible.

You can resolve this issue by never trading with a too-small amount of capital. This is a difficult problem to get around for someone that wants to start trading on a shoestring. $1,000 is a reasonable amount to start off with if you trade very small (micro lots or smaller). Otherwise, you are just setting yourself up for potential disaster.

I agree with that but have to say that I believe that it is possible to make profit even with the small account. As it grows it gives more profit.

Offline grobanjosh

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Re: The Main reason Why Forex Traders Fails.
« Reply #122 on: June 05, 2019, 10:53:14 AM »
Most currency traders start out looking for a way to get out of debt or to make easy money. It is common for forex marketers to encourage you to trade large lot sizes and trade using high leverage to generate large returns on a small amount of initial capital.

You must have some money to make some money, and it is possible for you to generate outstanding returns on limited capital in the short term. However, with only a small amount of capital and outsized risk because of too-high leverage, you will find yourself being emotional with each swing of the market's ups and downs and jumping in and out and the worst times possible.

You can resolve this issue by never trading with a too-small amount of capital. This is a difficult problem to get around for someone that wants to start trading on a shoestring. $1,000 is a reasonable amount to start off with if you trade very small (micro lots or smaller). Otherwise, you are just setting yourself up for potential disaster.

I agree with that but have to say that I believe that it is possible to make profit even with the small account. As it grows it gives more profit.

But since the beginrs are very impatient there are a big test for their restraint.

Offline marcopiccollo

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Re: The Main reason Why Forex Traders Fails.
« Reply #123 on: June 05, 2019, 11:17:16 AM »
Most currency traders start out looking for a way to get out of debt or to make easy money. It is common for forex marketers to encourage you to trade large lot sizes and trade using high leverage to generate large returns on a small amount of initial capital.

You must have some money to make some money, and it is possible for you to generate outstanding returns on limited capital in the short term. However, with only a small amount of capital and outsized risk because of too-high leverage, you will find yourself being emotional with each swing of the market's ups and downs and jumping in and out and the worst times possible.

You can resolve this issue by never trading with a too-small amount of capital. This is a difficult problem to get around for someone that wants to start trading on a shoestring. $1,000 is a reasonable amount to start off with if you trade very small (micro lots or smaller). Otherwise, you are just setting yourself up for potential disaster.

I agree with that but have to say that I believe that it is possible to make profit even with the small account. As it grows it gives more profit.

yes, I'm not saying it is impossible. It is just takes much longer time and gives more possibilities for new trader to loose.

sidewalk-star

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Re: The Main reason Why Forex Traders Fails.
« Reply #124 on: June 05, 2019, 02:10:51 PM »
From what I've heard traders fail because of inability to honor stop losses, eventually they take unlimited risk trying to withstand deep drawdown hoping for reversal, but it never happens. I must admit it happened to me several times trading with Hotforex but later I realized my mistakes and started to use stop loss in every trade, regardless of my hopes.

In response to that, it should be noted that I only became consistently profitable when I removed stop loss orders from my trading. Stop loss orders to me are "death by a thousand cuts". They will just erode your capital over time. Certainly with the strategies I use anyway.

I manage all my trade positions with sensible lot sizing relative to the account balance and can manage any 'losing' trades with averaging in or hedging. Stop loss orders seem too risky for me, they just provide liquidity for the big players, in my opinion.

There are thousands of useful articles on the internet outlining why using stop loss orders can be more trouble than they are worth. This one pretty much sums it up in a nutshell.

http://www.forextrading-pips.com/stop-loss-more-risky-than-you-might-think/

I'm attaching a screenshot of the broker account that I used to hone my skills with the main strategy that I trade on my signal. It was around August 2018 that I removed stop losses from all my trade positions and managed them 'on-the-fly' instead.

Others may disagree with my approach but I think the performance speaks for itself.

The key take away: Position size is everything.

Regards,

Dan.
« Last Edit: June 05, 2019, 03:41:40 PM by Balanced FX Portfolios »

Offline Hilapur

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Re: The Main reason Why Forex Traders Fails.
« Reply #125 on: June 21, 2019, 12:04:02 PM »
I think that there are really various reasons for lose deals on forex market. I think that new traders are lucking experience, and in this sense are not able to make good assessment of the situation on the market. However, lose deals are also way of learning

Offline drawdownrecovery

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Re: The Main reason Why Forex Traders Fails.
« Reply #126 on: July 23, 2019, 07:46:50 AM »
Agree with the post! I also think that the pitfalls of trading is when you get too comfortable and greedy.
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Offline y5nitro

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Re: The Main reason Why Forex Traders Fails.
« Reply #127 on: July 27, 2019, 09:19:36 AM »
BalancedFX, are you sure that you have increased your profitability by removing stop loss? What do you think about possibility that you have not been using SL properly? In addition, for how long you are trading without SL and what is your trading strategy?

Offline drunkfx

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Re: The Main reason Why Forex Traders Fails.
« Reply #128 on: July 29, 2019, 04:45:05 PM »
Guys anybody tried to trade without stop loss? I want to open unlimited EURUSD sell trade with 0.01 lot size, is it safe to not use stop loss on it?

Offline Eliza Abrams

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Re: The Main reason Why Forex Traders Fails.
« Reply #129 on: July 31, 2019, 04:58:38 PM »
Guys anybody tried to trade without stop loss? I want to open unlimited EURUSD sell trade with 0.01 lot size, is it safe to not use stop loss on it?
I did, as a newbie years ago. It led to nothing good.

Online felipebr

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Re: The Main reason Why Forex Traders Fails.
« Reply #130 on: July 31, 2019, 05:45:49 PM »
Maybe I'm not professional enough but I think if you have a cleary strategy plan, you really should use stop loss... but I guess many traders use a mix of exit strategies that is not possible to set a fixed stop.

I prefer to use the first option but it's just my opinion.

Offline Arsssele

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Re: The Main reason Why Forex Traders Fails.
« Reply #131 on: August 05, 2019, 04:40:10 PM »
BalancedFX, I dont think that it is good idea to remove stop loss from your trading. Sometimes market moves can be so volatile that SL order can save you a lot of money. How do you hedge your position against such moves?

 

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