2009.05.16 WHY 95% OF TRADERS FAIL - PART II
Posted: Sun May 17, 2009 2:14 am
2009.05.16 WHY 95% OF TRADERS FAIL - PART II
David vs. Goliath. That must be what you are thinking when you enter the trading arena. You have some "hot indicator" that you found or coded and you are ready to take on the giant and show the trading world what you're made of. Actually, what happens is more like Bambi meets Godzilla!! You get crushed in a very short period of time.
Is it your fault? You read the books. You back tested your system. You traded on demo. Then after you felt enough confidence, you funded your account and entered your first trade. Why oh why does the market always reverse right after I enter? Sound familiar?
What if just about everything you were taught was "wrong", "backwards" or "upside down"? What if you were (deliberately) handicapped from the start? What if all the "gurus" are the "blind leading the blind"?
I am sure you have read that you need to "learn how the markets work". But where can you find this important information? Why don't they just give it to you? You begin to wonder, does it really exist?
Some traders say that M1 and M5 are just noise and you need to trade on H1. Others say D1. And still others only look at W1. Who's right? Then some say you have to look at multiple time frames. Who should you believe or follow?
What if you have all of the pieces to the puzzle but can't get it put together? What next?
I sometimes think there are a few people, THE PUPPET MASTERS, who are pulling the strings. THE PUPPET MASTERS are the ones in charge and people like the President of the US and other heads of state jump when they jump. I think THE PUPPET MASTERS meet from time to time to laugh their (_*_)s off at the rest of the world. That's just how I feel about it. But deep down I really don't believe it.
The market doesn't even know that you or I exist. We're small fries. And those people who teach don't really know that much more than the rest of us. They huff and puff but when someone like me comes along and pulls down the curtain of OZ, the result is banishment. But I digress.
THE REASON 95% OF FOREX TRADERS LOSE IS BECAUSE THEY ARE LOOKING AT THE WRONG THINGS. And I do NOT mean time frames or SQUIGGLY LINE indicators. There are entities that are moving hundreds of millions or billions of dollars at a time. Do you think they have some special, magic MACD numbers? How can you expect to successfully trade the GBPUSD if you don't know what GBPJPY and GBPCHF are doing at the same time? Just when you thought GBPJPY had bottomed and entered long, IT TANKS ANOTHER 100+ PIPS. If only you had checked the other currencies!!
Price moves for a reason. DO YOU KNOW WHY PRICE MOVES? You read and talk about support and resistance but do you really understand what causes support and resistance? Do you think support or resistance are lines on a chart? If you look at the GBPUSD, GBPCHF and GBPJPY charts, you may see them moving in the same direction or opposite directions. What would you do in each case? Wait or enter? Does anyone teach you to do that? If not, why not? Are they keeping this information from you on purpose?
TO BE CONTINUED...
David vs. Goliath. That must be what you are thinking when you enter the trading arena. You have some "hot indicator" that you found or coded and you are ready to take on the giant and show the trading world what you're made of. Actually, what happens is more like Bambi meets Godzilla!! You get crushed in a very short period of time.
Is it your fault? You read the books. You back tested your system. You traded on demo. Then after you felt enough confidence, you funded your account and entered your first trade. Why oh why does the market always reverse right after I enter? Sound familiar?
What if just about everything you were taught was "wrong", "backwards" or "upside down"? What if you were (deliberately) handicapped from the start? What if all the "gurus" are the "blind leading the blind"?
I am sure you have read that you need to "learn how the markets work". But where can you find this important information? Why don't they just give it to you? You begin to wonder, does it really exist?
Some traders say that M1 and M5 are just noise and you need to trade on H1. Others say D1. And still others only look at W1. Who's right? Then some say you have to look at multiple time frames. Who should you believe or follow?
What if you have all of the pieces to the puzzle but can't get it put together? What next?
I sometimes think there are a few people, THE PUPPET MASTERS, who are pulling the strings. THE PUPPET MASTERS are the ones in charge and people like the President of the US and other heads of state jump when they jump. I think THE PUPPET MASTERS meet from time to time to laugh their (_*_)s off at the rest of the world. That's just how I feel about it. But deep down I really don't believe it.
The market doesn't even know that you or I exist. We're small fries. And those people who teach don't really know that much more than the rest of us. They huff and puff but when someone like me comes along and pulls down the curtain of OZ, the result is banishment. But I digress.
THE REASON 95% OF FOREX TRADERS LOSE IS BECAUSE THEY ARE LOOKING AT THE WRONG THINGS. And I do NOT mean time frames or SQUIGGLY LINE indicators. There are entities that are moving hundreds of millions or billions of dollars at a time. Do you think they have some special, magic MACD numbers? How can you expect to successfully trade the GBPUSD if you don't know what GBPJPY and GBPCHF are doing at the same time? Just when you thought GBPJPY had bottomed and entered long, IT TANKS ANOTHER 100+ PIPS. If only you had checked the other currencies!!
Price moves for a reason. DO YOU KNOW WHY PRICE MOVES? You read and talk about support and resistance but do you really understand what causes support and resistance? Do you think support or resistance are lines on a chart? If you look at the GBPUSD, GBPCHF and GBPJPY charts, you may see them moving in the same direction or opposite directions. What would you do in each case? Wait or enter? Does anyone teach you to do that? If not, why not? Are they keeping this information from you on purpose?
TO BE CONTINUED...