What are your favorite trading myths? - Page 12
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Thread: What are your favorite trading myths?

  1. #111
    Quote Originally Posted by ;
    quote You can have a higher probability however, you can't predict the future.
    Certainly if I could guess the lottery numbers right 50 percent of the time I don't need to predict the future lol

    What's the difference anyhow? Sounds like just playing with all the words...

  2. #112
    Quote Originally Posted by ;
    quote Looking at it from a different angle. Unlike traders, under-capitalized traders lose it all in a bid to maintain their capitals. A sensible trader is not anticipated to set Stop reduction tight it gets hit in a normal market movement. Is taking a possibility that is blind, if a person does and this chance taking is totally contrary to the primary goal of funding preservation. Generally, trades using Stop Losses are taken not to maintain the funds except to gain more than sum risked. A good r/r exchange provides no guarantee...
    Solid post...

  3. #113

  4. #114
    By utilizing a simple corel of 95% failures in this forum, the obvious response would be that 95% of what's being taught or propagate here is only nonsensical and b.....it.

    However, the mother of this all is the Probability Theory which is a pure and complete cover-up or excuse for its ineptness/inefficient of one capability to trade profitably. Even if your methodology is 99% likelihood ratioed, there's still a probability that the methodology is faulty which simply suggests that the approach isn't robust or effective yet. Of course it may be re-engineered along with different facets to improve the probability in their own favor which is completely a different ball game. The simple fact remains that it may be tweaked frequently fuzzy and muddled the definition of an effective methodology vs a mediocre and failing one. 99.9percent of Financial analysts use this Probability theory to cover their asses. Which explains why I daresay that not one of those called analyst would be a profitable forex trader.

    I myself have never try to advertise or vouch for any successful methodology BUT I did briefly mentioned all of the necessary/integral aspects which would make a robust trading plan in order to succeed in this extremely demanding company.

    I wish you success in each endeavours....

    Now let the flaming begins....

    GS

  5. #115
    Quote Originally Posted by ;
    By using a very simple corel of 95% failures in this forum, the clear response is that 95% of what is being taught or disperse here is simply nonsensical and b.....it.
    Genghistar, I presume you're refering to the fantasy that 95% of all of the traders losing their cash, yes that is right, it's just a myth or a marketing trick to make people feel dumb about them selfes they are eager to buy one of these worthless Foreign Exchange classes you see everywhere on the net today days.

    I think that this 95% looser statement originally came out 1 or 2 so called bucketshop brokers who claimed that traders dropped 95%, so even if they did, it's only reprecenting a tiny blip of all of the traders in fx, also that I mean that wouldn't loose being with a bucket store with poor trading conditions.

    Should you think about it, the foreign exchange is actually large and is world wide, it's not anqored in any places such as a market where it is possible to look to and see all the traders acounts history, it's simply not possible! So there's absolutely no way anybody can back up such a statement, therefore it shouldn't be taken for granted, there is a lot of exellent traders teaching good stuff here on FF

    any one can become successful trading, but it is not simple, it takes a lot of dediion eduion and difficult work.

  6. #116
    Quote Originally Posted by ;
    quote No way, he was in my twirling course. The coincidence! He's quite the stuck up sort that is wizzardy however, didn't really like him. Where everybody else was in a pink tutu, he wore some dumb robe.

  7. #117
    99 percent of Foreign Exchange traders don't make money

    While this isn't an absolute fantasy, the circumstance in which it is said is misleading.

    What's the misleading circumstance? It is comparing trading to ordinary (paid) tasks: paid employees earn money about 100% of the time I'd presume (otherwise they would not be employees, they'd be unemployed), whereas many traders don't make money.

    But why bulge trading jointly with paid occupations? After all, we have heard it said countless times that trading is, and should be treated, as a organization.

    Therefore, if we compare trading to companies instead of paid occupations, what exactly do we get?

    Well, you've likely heard it said that about 80-95% of new businesses fail in the first year. Here is a link:

    http://www.forbes.com/sites/ericwagn...sinesses-fail/

    I added this link not because it mentions the statistic, but since it also offers 5 reasons why companies fail. Ring a bell? For me it does, it reminds me of high reasons why traders neglect (lack of discipline, jumping from one system to the next, lack of patience, lack of a rule-bound egy, etc.) Where companies or traders or marriages fail, everybody's bound to come up with their favorite 5 or 10 reasons!

    It is difficult to come by accurate numbers, however, the failure rate in Foreign Exchange is likely closer to 75 percent, and I'm not even sure if they mean lose money or don't make money.

    It is also not completely certain what % of companies fail, but from the data I have read it seems fairly accurate to say that not over 25% of new businesses survive after 10 yearsago Isn't this roughly the same as with trading?

    Trading is a business, and might be less perilous than other kinds of companies, but it's definitely not a paid occupation (at least not how we here do it), so why compare it into one?

    A 75% failure rate is not abnormal in the business sector where trading really belongs. You'd have the exact same failure rate if you opened a new restaurant. Should you are discouraged by that? Not if you are a businessman. It comes with the territory.

  8. #118
    I exchange with Price action system. Still I am new trader and seeking to learn. Currently my concentrate to find out well price action system

  9. #119
    This really is one, as it is hugely misleading:

    Nobody ever goes broke closing their commerce in profit

    Okay. So, allegedly average profit is 7 pips and average reduction is 37 pips. If that is the general case for many traders, then where is that going to get them?

    Yes, technically the'profits' are not going to lead to your loss. . .but the profits are minimal when compared with your losses they are virtually irrelevant. You are in fact letting your restricted profits endanger your trading success and letting the losses eat off your capital. Eventually, you will have left to exchange or have to add more funds.


    On-line also undermines the notion of Let profits run and maintain losses short. If you ensure it applies to closing a profitable commerce before it goes against you personally. . .yes, potentially wise. However, I expect folks use it in order to rationalise jumping from a market much too soon because it retraced Phew. Well as they say'No one ever goes broke closing trades in profit', so I am being clever...

    I have also noticed that many men and women post about their winning trades, but they're quite often in the 5-40 pip range. Just average out that and consider just how frequently they might have to eat 10-20 pip SL's also it is not going to be simple turning a profit.

  10. #120
    The learning curve will be shortened since you are determined and really smart.

    That if you trade 15 hours every day for a year, then you'll have exactly the exact same experience as someone who has traded one hour every day for 15 years.

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