Why Do Traders Lose? by Jeffrey Kennedy ???????

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    Why Do Traders Lose? by Jeffrey Kennedy ???????
    i would like to share with you this great article bye Jeffrey Kennedy
    Close to ninety percent of all traders lose money. The remaining ten percent somehow manage to either break even or even turn a profit Ė and more importantly, do it consistently. How do they do that?

    That's an age-old question. While there is no magic formula, one of Elliott Wave International's senior instructors Jeffrey Kennedy has identified five fundamental flaws that, in his opinion, stop most traders from being consistently successful. We don't claim to have found The Holy Grail of trading here, but sometimes a single idea can change a person's life. Maybe you'll find one in Jeffery's take on trading? We sincerely hope so.

    The following is an excerpt from Jeffrey Kennedyís Traderís Classroom Collection. For a limited time, Elliott Wave International is offering Jeffrey Kennedyís report, How to Use Bar Patterns to Spot Trade Setups, free.

    Why Do Traders Lose?

    If youíve been trading for a long time, you no doubt have felt that a monstrous, invisible hand sometimes reaches into your trading account and takes out money. It doesnít seem to matter how many books you buy, how many seminars you attend or how many hours you spend analyzing price charts, you just canít seem to prevent that invisible hand from depleting your trading account funds.

    Which brings us to the question: Why do traders lose? Or maybe we should ask, 'How do you stop the Hand?' Whether you are a seasoned professional or just thinking about opening your first trading account, the ability to stop the Hand is proportional to how well you understand and overcome the Five Fatal Flaws of trading. For each fatal flaw represents a finger on the invisible hand that wreaks havoc with your trading account.

    Fatal Flaw No. 1 Ė Lack of Methodology

    If you aim to be a consistently successful trader, then you must have a defined trading methodology, which is simply a clear and concise way of looking at markets. Guessing or going by gut instinct wonít work over the long run. If you donít have a defined trading methodology, then you donít have a way to know what constitutes a buy or sell signal. Moreover, you canít even consistently correctly identify the trend.

    How to overcome this fatal flaw? Answer: Write down your methodology. Define in writing what your analytical tools are and, more importantly, how you use them. It doesnít matter whether you use the Wave Principle, Point and Figure charts, Stochastic, RSI or a combination of all of the above. What does matter is that you actually take the effort to define it (i.e., what constitutes a buy, a sell, your trailing stop and instructions on exiting a position). And the best hint I can give you regarding developing a defined trading methodology is this: If you canít fit it on the back of a business card, itís probably too complicated.

    Fatal Flaw No. 2 Ė Lack of Discipline

    When you have clearly outlined and identified your trading methodology, then you must have the discipline to follow your system. A Lack of Discipline in this regard is the second fatal flaw. If the way you view a price chart or evaluate a potential trade setup is different from how you did it a month ago, then you have either not identified your methodology or you lack the discipline to follow the methodology you have identified. The formula for success is to consistently apply a proven methodology. So the best advice I can give you to overcome a lack of discipline is to define a trading methodology that works best for you and follow it religiously.

    Fatal Flaw No. 3 Ė Unrealistic Expectations

  2. #2
    Senior Member
    Join Date
    Aug 2015
    Thanked: 1


    Trader loss mainly because of their low trading knowledge and higher expectation! Basically, Forex market is very complex market, and sometimes it?s very tough job to identify market trend, knowledge is the main weapon here! Luckily, I use education friendly broker TradingBanks, so I get professional educational guideline in everyday as their live market reviews!

  3. #3
    Senior Member
    Join Date
    Sep 2017
    Thanked: 2


    in ro ham eslah kon:
    There are different learning sessions in Forex market provided by the Forex brokers to lead a successful and confident trading career. But most of the Forex traders ignore learning before trading and they lose money and fail in their business. But I learn from Forex4you trading brokerís free seminar classes which was very effective to learn and understand the basics of Forex trading. Now I can trade comfortably and confidently.

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