why 95% lose

[copypasteaee]

hi
Main reason is not following 1.back tested rules and 2.absent of trading psychology

View attachment 19356

Because of many reasons but some are as follows:

1. They search the success in forums/ afls/ systems
2. They forget that trading is about searching their way their selves.
3. Actually its fear and greed always which kills the retailer.... 90% its fear and 10% its greed. I have seen very good traders going on their knees as they didnt had alternate source of income and market does not care that you have fixed monthly expenses to make, kids school fees, kitchen expenses etc etc..
4. Like pilots have "flying hours" traders also have "terminal hours". One need to experience it himself to be successful. Why are they dependent on observations of some one else, why don't they observe it themselves.
5. Last but not least, the unexceptional returns expected out of it.... A person will invest 1 Lakh Rs and will try to earn 1 lakh Rs a month. I wont say thats not possible, but its very hard for a new trader who is trying to survive. Monthly income of 5-10% is easily achievable by a newbie.

So these are my few cents

Regards

Copy Pastie

 

[OMSAI]

Because of many reasons but some are as follows:

1. They search the success in forums/ afls/ systems
2. They forget that trading is about searching their way their selves.
3. Actually its fear and greed always which kills the retailer.... 90% its fear and 10% its greed. I have seen very good traders going on their knees as they didnt had alternate source of income and market does not care that you have fixed monthly expenses to make, kids school fees, kitchen expenses etc etc..
4. Like pilots have "flying hours" traders also have "terminal hours". One need to experience it himself to be successful. Why are they dependent on observations of some one else, why don't they observe it themselves.
5. Last but not least, the unexceptional returns expected out of it.... A person will invest 1 Lakh Rs and will try to earn 1 lakh Rs a month. I wont say thats not possible, but its very hard for a new trader who is trying to survive. Monthly income of 5-10% is easily achievable by a newbie.

So these are my few cents

Regards

Copy Pastie

Well sad CP bro....Trading psychology is more important than technical....our success depend on trading psychology .... I believe 90% Trading psychology....10% Technical...:thumb:

 

[Riskyman]

95% of the population are mediocre and do not excel in their chosen professions.
same

So you are saying that if you handpick the top 1% of the people in their respective professions they would be able to excel at trading? Rubbish... Excelling in some profession like being a doc or an engineer has nothing to do with being successful as a trader. I know a couple of guys who are extremely mediocre is most walks of their lives.. so much so that they dont know mathematics anymore than basic addition, subtraction, multiplication and division but yet they take home a fortune every month from trading stocks and one guy doesnt even have a college degree. Trading is a different beast.

 

[Niranjanam]

"95% of the population do not excel in their chosen professions" does not mean remaining 5 % of the population will excel in all the professions

 

[bunti_k23]

95% of the population are mediocre and do not excel in their chosen professions.
This is applicable to all walks of life. Doctors, Engineers, Actors, Drivers, ...........
But in many areas people can conceal their mediocrity and pretend as experts.
In trading it is not possible. In fact in every other profession it is the same

well said:thumb: those who lack conviction will always be mediocor

 

[Jai Mata Di]

In my view, trading (not investing) is a zero sum game so there is no place for mediocre. They get out of the system slowly. Trading is completely different profession as it is a zero sum game. In other profession mediocre gets mediocre returns, smarter get big. But here either you are a winner or a looser. A long time winner (who stays in the system for several years) can not get mediocre returns in this market bcoz market produces big numbers of looser regularly(they try-loose-quit and never came back) and their money just go to few winners. So overall in this market there is no place of even mediocre. Only few winners who finally stays in this system.

Now I am telling you a hard fact:-

Currently in India out of almost 127 Cr population there is only about 5 lakh Active Traders (whole 100%).
Actual fact is percentage of winners among new trader is less than 2 percent.
Actual research shows winners in USA (where market is pretty old and good technology is available with beginners also) is about 8%. But out of which 80% are old winners who wins regularly. So rest 20% of winners group are new. Which is about 1.6% of total traders.
Some old winners also get out of system and new winners enter there and fresh winners take their places. That is the whole process.

So out of one thousand new trader only 16 person survive ultimately & enter to new traders group. That why we see very few successful trader TJ too. Most of them are in this market more than 5-7 years.

So beginners must be careful for choosing this profession of trading. Unless you have a very good will power, fighting spirit, dedication for learning, hard work & persistence it is hard to survive here. You have to survived for at least 5-7 years in this jungle of trading. A trader grows only with experience here.

All the best.

Happy Trading.

H.C

 

[copypasteaee]

In my view, trading (not investing)is a zero sum game

Trading was never a zero sum game. Even if you have a scratch trade means bough at 100 Rs and sold at 100 Rs still then you go home red as you have to pay brokerage and taxes. I read a recent paper on day traders the author studied the day trader trades history from 1996 to 2013 i think. Most of the traders were positive without taxes and brokerage but when brokerage, taxes and expenditures included they went negative. This paper has interesting statistics... go through it

http://faculty.haas.berkeley.edu/odean/papers/Day Traders/Day Trading Skill 110523.pdf

 

[jamit_05]

Agreed.

Whereas, doctors, lawyers, plumbers get some sort of income while they are learning the profession. In trading, one has to be an expert first and then start earning. And being an expert in any field, even as a carpenter, takes years. NO short cut to that.

Moreover, only the ones who are naturally set to allot 5 to 10 years to trading will see light of day. No amount of discipline or will-power can substitute for a natural setting. This natural setting would primarily include a source of income or a decently good kitty to start with or parent's help, to see him through those years of learning. Natural setting would also include a tendency to believe oneself more than one's ledger, habit of reading, being tech savvy, patience.

 

[santhosh2010]

 

[santhosh2010]

mine : i 'll try to do it