Traders Failure In Forex.
I really want to know cos I have a lot of traders who have proven strategies and not still profitable. Capital isn’t even the issue for them. Can it be psychology?
If you read the Turtle Traders story, one of the founders (I think it was Richard Dennis) said even if he posts his profitable strategy on the pages of the newspapers for everyone to see, many will still fail because they will not have the discipline to stick to the strategy through good and bad market days.
I discovered that trading forex is like a mind game, that tests your greed. It is like you are a cat and someone puts fish in front of you and says do not eat it, many cats cannot resist the temptation of tasting the fish.
Even the best strategies fail some times, and the temptation is always to abandon your strategy, switch bias and trade what seems like the winning outcome and that is how failure starts. That is a bad habit and although it may reward you sometimes, in the long run it will do you more harm than good when you get used to it.
So, I think discipline is the reason why so many traders with good strategies still struggle.
It will surprise many to know that even the best traders struggle with this issue of discipline, thats why automated trading and bots were brought into trading.
It is hard to maintain discipline when you are trading with funds you cannot afford to lose. You may have a good strategy but biting off more than you can chew with big lot sizes will make you fumble the strategy.
So, I think discipline is the reason why so many traders with good strategies still struggle.
Discipline, i think that’s a missing piece actually.
Last week I had back to back losses with my strategy but I stucked to it and took one more trade and that cleared my losses. I also
Saw some setups that alligned with my strategy that same week, I ignored cos of the losses. I regret not taking those setups actually.
It will surprise many to know that even the best traders struggle with this issue of discipline, thats why automated trading and bots were brought into trading.
Do you really think automated trading bots can be a substitute for actual trading? I don’t trust those bots
Automated trading & bots remove emotion from trading and I strongly beleive they were brought into trading to manage this issue of discipline. I think hedge funds and prop firms use these bots for some form of High Frequency Trading (HFT) and this has been known to cause stock market crashes in the past. Read more here https://en.wikipedia.org/wiki/2010_flash_crash
Alright. Thank you for your response.
I don’t think prop firm allow the use of trading bots for their accounts. Do they?
Automated trading & bots remove emotion from trading and I strongly beleive they were brought into trading to manage this issue of discipline. I think hedge funds and prop firms use these bots for some form of High Frequency Trading (HFT) and this has been known to cause stock market crashes in the past. Read more here https://en.wikipedia.org/wiki/2010_flash_crash