Tags |
|
|
Links |
|
|
Member You - Online FOREX Brokers – A Brokers View Of Why Novice Clients Lose
Ever wonder if deals online are really better than deals found in your local retail store or outlet? Are you one of those people who think you can wait and get a good deal later? Weather you have considered both of these questions, or just want to make your dollar stretch as far as possible, there are few things you should know about online shopping.Consumers are constantly bombarded with so many online advertisements that we easily take most offers for granted, or are just
They had jobs where they had to be disciplined everyday, yet in the markets they simply behaved irrationally as soon as a few losses came along.
- They would chop and change methods looking for the perfect one. - They would revenge trade to catch up losses. - They would blame the markets and call them stupid
When money is on the line we all know it’s hard to be disciplined, but the emotions that we saw ranged from crying to total despair, including one suicide.
3. Money management
<Affiliate marketing is a highly competitive method of traffic generation and this is due to the hundreds of people getting into the business daily. Because of this competition, the entire goal of becoming an affiliate is to come up with new and exciting methods to outdo the other affiliates in the business.All over the web, you can find a great deal of techniques and trips that are all geared toward helping you learn how to plan a great strategy. All of this can help you implement the pr
I dealt with several thousand traders over 8 years and here are my observations.
This was the late eighties and early nineties and online FOREX brokers of course did not exist, clients behave no differently today as they did then.
Here are the top reasons traders lose with any FOREX broker and that includes online FOREX brokers
1. Methods traded were illogical
The first reason was simply methods did not work as logic they were based upon was not relevant to market movement.
Today, day trading is more popular than ever with online FOREX brokers, but it was around 20 years ago and the same results were obtained which were:
A wipe out of equity in a short time.
Day trading did not work then and it doesn’t work now- Volatility is random in short time frames.
Any support and resistance seen in a daily time frame therefore is useless for trading purposes.
Online FOREX traders just like we did must love day traders lots of commission generated!
As a broker your balance sheet is based upon commission to equity.
You generally assume all clients lose anyway, so if they pay lots of commission while losing all the better.
There were other methods that lost especially the ones that clients bought that promised regular money or an income from trading.
These methods were normally bought tested in hindsight and the trader threw in the towel after a few losses, or was wiped out.
Another group that lost were the ones with complicated methods.
They figured the more complicated a method was the more likely it was to succeed, this of course is totally wrong.
Simple systems work best as there are fewer elements to break.
We had one trader who bought a system which he proudly boasted was based on artificial intelligence and the same technology used by NASA to put a man on the moon
Unfortunately, it did not help him in the market!
2. Discipline
What always struck me was how few clients could trade in a disciplined fashion.
They had jobs where they had to be disciplined everyday, yet in the markets they simply behaved irrationally as soon as a few losses came along.
- They would chop and change methods looking for the perfect one. - They would revenge trade to catch up losses. - They would blame the markets and call them stupid
When money is on the line we all know it’s hard to be disciplined, but the emotions that we saw ranged from crying to total despair, including one suicide.
3. Money management
<The following nursing home collections report outlines 11 guidelines you can follow to increase the amount of in-house long term care collections your facility collects.1] Have A Defined Long Term Care Collection PolicyOne of the major causes of delinquent nursing home receivables is that the facility has not clearly defined to its residents/responsible parties and business office staff when the accounts are to be paid. If you are currently 'playing-it-by-ear', and have no consist
1. Methods traded were illogical
The first reason was simply methods did not work as logic they were based upon was not relevant to market movement.
Today, day trading is more popular than ever with online FOREX brokers, but it was around 20 years ago and the same results were obtained which were:
A wipe out of equity in a short time.
Day trading did not work then and it doesn’t work now- Volatility is random in short time frames.
Any support and resistance seen in a daily time frame therefore is useless for trading purposes.
Online FOREX traders just like we did must love day traders lots of commission generated!
As a broker your balance sheet is based upon commission to equity.
You generally assume all clients lose anyway, so if they pay lots of commission while losing all the better.
There were other methods that lost especially the ones that clients bought that promised regular money or an income from trading.
These methods were normally bought tested in hindsight and the trader threw in the towel after a few losses, or was wiped out.
Another group that lost were the ones with complicated methods.
They figured the more complicated a method was the more likely it was to succeed, this of course is totally wrong.
Simple systems work best as there are fewer elements to break.
We had one trader who bought a system which he proudly boasted was based on artificial intelligence and the same technology used by NASA to put a man on the moon
Unfortunately, it did not help him in the market!
2. Discipline
What always struck me was how few clients could trade in a disciplined fashion.
They had jobs where they had to be disciplined everyday, yet in the markets they simply behaved irrationally as soon as a few losses came along.
- They would chop and change methods looking for the perfect one. - They would revenge trade to catch up losses. - They would blame the markets and call them stupid
When money is on the line we all know it’s hard to be disciplined, but the emotions that we saw ranged from crying to total despair, including one suicide.
3. Money management
<Ok so you know you need to find a niche market, but how on earth do you do that? With so many niches out there, where do you start?Ok firstly your going to need to go to your computer and open two windows:1. Google.com2. inventory.overture.comWhat we are looking for and what we really mean by a niche market is a market that has a relatively low number of pages already listed in the search engines. This figure represents supply or ‘competition’ for this niche. What we
Online FOREX traders just like we did must love day traders lots of commission generated!
As a broker your balance sheet is based upon commission to equity.
You generally assume all clients lose anyway, so if they pay lots of commission while losing all the better.
There were other methods that lost especially the ones that clients bought that promised regular money or an income from trading.
These methods were normally bought tested in hindsight and the trader threw in the towel after a few losses, or was wiped out.
Another group that lost were the ones with complicated methods.
They figured the more complicated a method was the more likely it was to succeed, this of course is totally wrong.
Simple systems work best as there are fewer elements to break.
We had one trader who bought a system which he proudly boasted was based on artificial intelligence and the same technology used by NASA to put a man on the moon
Unfortunately, it did not help him in the market!
2. Discipline
What always struck me was how few clients could trade in a disciplined fashion.
They had jobs where they had to be disciplined everyday, yet in the markets they simply behaved irrationally as soon as a few losses came along.
- They would chop and change methods looking for the perfect one. - They would revenge trade to catch up losses. - They would blame the markets and call them stupid
When money is on the line we all know it’s hard to be disciplined, but the emotions that we saw ranged from crying to total despair, including one suicide.
3. Money management
<Among the small businesses that I coach, I find that the more effective entrepreneurs recognise that planning and managing success has three parts:They depend on measuring the past accurately. They strive to follow their plans in the present. They build flexible plans for the future.Looking backYou need numbers to count what you have achieved over the last business cycle. Clearly performance is not numbers alone: their me
Another group that lost were the ones with complicated methods.
They figured the more complicated a method was the more likely it was to succeed, this of course is totally wrong.
Simple systems work best as there are fewer elements to break.
We had one trader who bought a system which he proudly boasted was based on artificial intelligence and the same technology used by NASA to put a man on the moon
Unfortunately, it did not help him in the market!
2. Discipline
What always struck me was how few clients could trade in a disciplined fashion.
They had jobs where they had to be disciplined everyday, yet in the markets they simply behaved irrationally as soon as a few losses came along.
- They would chop and change methods looking for the perfect one. - They would revenge trade to catch up losses. - They would blame the markets and call them stupid
When money is on the line we all know it’s hard to be disciplined, but the emotions that we saw ranged from crying to total despair, including one suicide.
3. Money management
<Most of us have heard of the word entrepreneur and the meaning that single word conveys. Yes, an entrepreneur is the one who is willing to own and operate and take the risk of operating any business. He is the one who manages all the factors of production to carry on with production. But with time, the purview of the word entrepreneur changed dramatically and it became a comprehensive word signifying a lot of different aspects of business.Two major extensions of entrepreneurship that has
They had jobs where they had to be disciplined everyday, yet in the markets they simply behaved irrationally as soon as a few losses came along.
- They would chop and change methods looking for the perfect one. - They would revenge trade to catch up losses. - They would blame the markets and call them stupid
When money is on the line we all know it’s hard to be disciplined, but the emotions that we saw ranged from crying to total despair, including one suicide.
3. Money management
Many clients were good at picking market direction but could never make any money due to poor money management.
This was problem for them not only in cutting loses ( they very often removed stops or never placed them) of course, a small loss soon becomes a big loss, the trader cant take that, then he was handed a loss he had to take.
He would have been better of taking the small loss in the first place.
What surprised me was how few traders could accept big profits.
The bigger the profit became the more they wanted to take it even if their system indicated further gains.
The argument given was:
“you don’t go broke taking a profit”
Of course you do, if profits don’t exceed your inevitable losses.
This was perhaps more important than taking small losses.
Traders I saw could not allow trades run to $10,000 or more, a couple of thousand and they banked.
There are more reasons but they above are the ones that caused most losses and of all the traders I traded less than 1% made money longer term.
In part 2 of this article we will look at different personalities we traded, who won, who lost and the traits of the traders who won.
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.memberyou.net/article/94470/memberyou-Online-FOREX-Brokers--A-Brokers-View-Of-Why-Novice-Clients-Lose.html">Online FOREX Brokers – A Brokers View Of Why Novice Clients Lose</a>
BB link (for phorums):
[url=http://www.memberyou.net/article/94470/memberyou-Online-FOREX-Brokers--A-Brokers-View-Of-Why-Novice-Clients-Lose.html]Online FOREX Brokers – A Brokers View Of Why Novice Clients Lose[/url]
Related Articles:
Developing a Team or Organization Vision
Bookmark it:
|