Why do more than 90% of traders lose?

Discussion in 'Trading' started by emg, Apr 8, 2011.

  1. slugar

    slugar

    Lots more involved than just risk management. Like fear of losing, fear of missing out, fear of being wrong, not having a well thought out plan, not having the discipline to follow your plan. Lot of things but certainly not just risk management. .
     
    #191     Mar 30, 2016
    profitlocker likes this.
  2. userque

    userque

    I guess my point is that there is no relevance in labeling one as a hobbyist, or pro, or whatever. What I would think is relevant is how well one can trade.

    A so-called successful hobbyist may be 'early' in their hobby--having just discovered/created their holy grail; and might actually be growing wealth at a rate sufficient enough to soon be able to change their 'label' to pro, with respect to US tax code--should they choose to, they could actually also be a 'better' trader than a/a-few/many/most pros with respect to non-institutional trading/algo-coding abilities.

    tl;dr

    What is in a name?
     
    #192     Mar 30, 2016
  3. kut2k2

    kut2k2

    Well, words do matter.

    And unfortunately it is common to conflate "professional" with "expert" and "amateur" (aka hobbyist) with "novice".

    The truth is there are novice professionals, expert professionals, novice amateurs and expert amateurs.

    Pros get paid, amateurs don't. Got nothing to do with the level of expertise.
     
    #193     Mar 30, 2016
    userque likes this.
  4. userque

    userque

    Right. That clearly expresses my point.
     
    #194     Mar 30, 2016
  5. Buy1Sell2

    Buy1Sell2

    That's where a lot of rookies go wrong trying to understand prudent risk management. It's more than risk reward.
     
    #195     Mar 30, 2016
  6. Buy1Sell2

    Buy1Sell2

    No one is wrong on every trade.
     
    #196     Mar 30, 2016
  7. Buy1Sell2

    Buy1Sell2

    Prudent Risk Management is not only necessary, it is the crux of successful trading. It is the only thing that matters.
     
    #197     Mar 30, 2016
  8. Buy1Sell2

    Buy1Sell2

    Incorrect
     
    #198     Mar 30, 2016
  9. Buy1Sell2

    Buy1Sell2

    More than 90% of traders lose due to reckless risk management--nothing more.
     
    #199     Mar 30, 2016
    Chubbly likes this.
  10. kut2k2

    kut2k2

    Not the point. Stop cutting out crucial parts of the proof and try to understand it.
     
    #200     Mar 30, 2016