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  1. #1
    Active Member RichardD's Avatar

    Why 95% Of Traders Fail !!!

    So here we are, the small, retail traders who most likely won't last more than a year in this biz (at least that's what statistics say). There's a great presentation held by an ex-bank trader (I'm not affiliated with his company) on the differences in approaching the markets/trading in general between professionals and amateurs like us; meanwhile this has nothing to do with binary options, I think there are several important takeaways on how to manage your risk and and how to NOT trade if you are just a small fish.
    http://www.youtube.com/watch?v=SK0FJfkWzyY Pt 1
    http://www.youtube.com/watch?v=cytdsNK3zMQ 2
    http://www.youtube.com/watch?v=xllA122l4_o 3
    http://www.youtube.com/watch?v=DYCnxq_WEpI 4

    Let me know what you think.

  2. #2
    Junior Member howard1's Avatar
    A lot of amateur traders fail because they are too eager to win money as fast as they can and they don't take the right amount of time reading and gaining less risky experience in trading strategies before they jump boldly with all their assets. Also being a trader is like being a surgeon. You need to be calm and confident to be a good doctor. Most newbys are nervous and that fear of losing money strikes them harder than any cheating broker or the occasional bad luck. Slowly achieving your goals with patience and willingness to learn is very important in order to prevent failure.

  3. #3
    Specialist Member marvel's Avatar
    For me 95% of traders fail because of their strong willingness to earn big money. That will never happen with strict risk management and small account in the beginning. If you start with let say 1k you need at lest 3-5 years to make your account to 50+k and to make descent profit from your trades.

  4. #4
    Active Member COGSx86's Avatar
    Ya I have to agree with traders wanting to make it big over night. I started with alot of money in trading and lost 60% of my porfolio. We are talking 6 digits. But anyways I had to regroup and if it wasnt for my portfolio being as big as it was I wouldnt be still alive. However I have become very discipline. My failures were I thought I knew what I was doing, I listened to, to many indicators, I didnt understand simple technical analysis (support and resistance) and I wanted to make 10K a day. Instead I would lose 10k a day.

    I laugh at that now,

    Have been trading for 1 year as of last week, turned a huge corner 3 months ago and am starting to put everything together. Small gains each day, with little risk. And I allow myself to have a failure factor, meaning no one is perfect, I will make mistakes and I must learn from them. Im kinda in a lucky situation where I can make small trades and use a little martingale to recover my loses, I allow up to 5 wrong trades (Total 2% portfolio size), trading 30 min expires.

  5. #5
    Solid Member Murphy13's Avatar
    That’s great you are talking from your personal experience. Impatience is the greatest enemy of all binary options traders and all traders in general. If we trade based purely on emotions without risk management we all will end losing everything independently of our knowledge or gut feelings. I hope you already learned your personal lessons and know how to trade profitably and most importantly without risking too much at ones

  6. #6
    Senior Member grindtime's Avatar
    I thought only 90% of traders failed. Now we're up to 95%... Geez. It's a hard life.

  7. #7
    Rookie Member Daveman's Avatar
    Quote Originally Posted by COGSx86 View Post
    Ya I have to agree with traders wanting to make it big over night. I started with alot of money in trading and lost 60% of my porfolio. We are talking 6 digits. But anyways I had to regroup and if it wasnt for my portfolio being as big as it was I wouldnt be still alive. However I have become very discipline. My failures were I thought I knew what I was doing, I listened to, to many indicators, I didnt understand simple technical analysis (support and resistance) and I wanted to make 10K a day. Instead I would lose 10k a day.

    I laugh at that now,

    Have been trading for 1 year as of last week, turned a huge corner 3 months ago and am starting to put everything together. Small gains each day, with little risk. And I allow myself to have a failure factor, meaning no one is perfect, I will make mistakes and I must learn from them. Im kinda in a lucky situation where I can make small trades and use a little martingale to recover my loses, I allow up to 5 wrong trades (Total 2% portfolio size), trading 30 min expires.
    It's great that you've learned from your mistakes and you managed to pick yourself up and keep on trading. Lots of people quit shortly after their first failure.

  8. #8
    Rookie Member
    Great to read as the reality is there is a cost on learning I am currently down 25% on my small account but boy have I learned and no price on learning ! . For me trading gold is '' too hard'' . Having a win of 9 in a row was counter productive as it made me too over confident , you soon get bought back to reality 7-0 in a row . But in it for the long haul and studying Psychology of trading its good because it helps had discipline in areas of your life like '' Gambling " horseracing . So its onwards and upwards and good luck to every striving to be in that 5% of winning traders .



    Quote Originally Posted by COGSx86 View Post
    Ya I have to agree with traders wanting to make it big over night. I started with alot of money in trading and lost 60% of my porfolio. We are talking 6 digits. But anyways I had to regroup and if it wasnt for my portfolio being as big as it was I wouldnt be still alive. However I have become very discipline. My failures were I thought I knew what I was doing, I listened to, to many indicators, I didnt understand simple technical analysis (support and resistance) and I wanted to make 10K a day. Instead I would lose 10k a day.

    I laugh at that now,

    Have been trading for 1 year as of last week, turned a huge corner 3 months ago and am starting to put everything together. Small gains each day, with little risk. And I allow myself to have a failure factor, meaning no one is perfect, I will make mistakes and I must learn from them. Im kinda in a lucky situation where I can make small trades and use a little martingale to recover my loses, I allow up to 5 wrong trades (Total 2% portfolio size), trading 30 min expires.

  9. #9
    Veteran Member Optionguy's Avatar
    Any area of life you come unprepared (and you do if it is new) you will have to be loser first before you learn the rules of the game and gain experience by practicing them. It works in sports, work, art and surely in financial markets. I guess that more than 95 percent of newbies are actually losers.

  10. #10
    Rookie Member Crazycat's Avatar

    A bit daunted by this figure.... !!!

    So if 95% of traders in general fail. What would be an approximate % of people who are members of this forum who fail/succeed?

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