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Verifying that you are not a robot
“Free” hedging strategies in the market today fail this test. 1998: I was part of a meeting with the arb desk and the leaders of Travelers, the new owners of Salomon. Both Sandy Weill and Jamie Dimon were in the meeting. They clearly did not like volatility coming from the arb desk’s trades.
Reflection on 33 years of trading and some lessons learnedI had no idea what the bond futures contract was at the time and barely knew what a bond was. The low yields then were also a great environment to create “hybrid options” with multiple asset classes. One memorable trade here was selling a knockout interest rate cap on Yen interest rates with a knockout triggered by the dollar vs.After the market went limit down as Trump looked like the winner, covered the short futures position and went home since the call options were essentially worthless. When I woke up the next day the market was up huge, and now the calls paid off. Moral: you can get a trade right with the wrong hypothesis if the market is one sided.Fortunately, this trade was re-assigned before both of them imploded. Sometimes you get lucky!
Professional trader Tom Hougaard reveals why mental fortitude, not technical analysis, separates the 1% of winners from everyone else In a world where retail trading has exploded—with millions of Americans now actively trading stocks and ...
Trending: New to crypto? Get up to $400 in rewards for successfully completing short educational courses and making your first qualifying trade on Coinbase. Perhaps most counterintuitively, Hougaard suggests that being “very scared of failure” can actually drive success.Hougaard’s framework reveals an uncomfortable economic reality: the 99% who consistently lose money are essentially funding the accounts of successful traders. Every blown account, every emotional trade, every failure to follow a plan becomes “tuition” paid to the market—and collected by those with the mental discipline to stay consistent.Success requires embracing failure as what he calls a “compelling protagonist towards achieving your goals.” It means developing the internal drive that makes you willing to work while others rest, and building the mental framework to handle inevitable losses without emotional breakdown. The most successful traders aren’t those with the best technical analysis or the most sophisticated algorithms.This article This Trading Veteran Says 99% of Traders Fail Because They're Missing One Critical Element—And It's Not What You Think originally appeared on Benzinga.com
The 5 O's of trading are fatal for traders. Learn what they are before it's too late and you end up blowing your account!
Did you know that the five deadliest factors that cause traders to fail are self-inflicted? Many traders self-sabotage their own trading and may not even be aware they’re doing it. When their account goes to zero, they have nobody to blame but themselves. While it might be too late for these traders, fortunately, it’s not too late for you.The 5 Deadly O’s of Trading: What Traders Do To Guarantee Their Own Failure · How to Lose All the Money in Your Trading Account in 10 Days (or Less) Tips for Forex Trading Beginners · What Makes a Good Trader? Forex Trading Scams · Forex Managed Accounts ·The 5 O's of trading are fatal for traders. Your success depends on avoiding these negative factors. Learn what they are before it's too late.However, it’s one thing to believe that your trades can potentially be profitable, but it’s another thing to think that you know everything about the markets and that there’s no way for you to ever lose because all you do is win.
In this blog post, we’ll dive deep into the reasons behind the high failure rate among traders and, more importantly, reveal the proven strategies that can help you beat the odds and achieve long-term success in trading.
One of the primary reasons traders fail is the absence of a clear, well-defined trading plan. Many novice traders enter the market without a solid strategy, hoping to make quick profits based on gut feelings or random tips. However, this approach rarely leads to consistent success.A trading plan should outline specific entry and exit criteria, as well as risk management rules. Without these guidelines, traders often find themselves making impulsive decisions based on short-term market fluctuations. This lack of discipline can lead to significant losses and ultimately, failure.Traders who risk a significant portion of their account on a single trade are setting themselves up for failure. A few losing trades can quickly deplete their capital, leaving them unable to recover. As a general rule, traders should risk no more than 1-2% of their account on any single trade.Emotions are one of the biggest obstacles to trading success. Fear, greed, and hope can cloud judgment and lead to irrational decisions. Many traders fail because they allow their emotions to dictate their actions, rather than following their trading plan.
That’s how you separate yourself from the 90% who fail and quit. If you focus only on today’s wins or losses, you’ll miss the bigger picture. Trading is about building a foundation, brick by brick. The more you practice, study, and refine, the stronger you become. So take it slow. Be patient. Stay disciplined. At the end of the day, trading is about building skills, stacking knowledge, and staying disciplined long enough to see real results. · Most traders ...
That’s how you separate yourself from the 90% who fail and quit. If you focus only on today’s wins or losses, you’ll miss the bigger picture. Trading is about building a foundation, brick by brick. The more you practice, study, and refine, the stronger you become. So take it slow. Be patient. Stay disciplined. At the end of the day, trading is about building skills, stacking knowledge, and staying disciplined long enough to see real results. · Most traders burn out because they rush the process, but if you stay patient, practice deliberately, and keep the big picture in mind, you’ll separate yourself from the crowd.I’m going to tell you the cold, hard truth… Most traders never make it. No joke, 90% of traders fail.It takes time, focus, and discipline. It takes more than most people are willing to put in. That’s why roughly 9 out of 10 traders fail.Watch the video below for the full trade breakdown and strategy tutorial for my Monday Setup.
Trading is not about luck — it’s about discipline. Over the years, I’ve learned that the difference between traders who succeed consistently and those who fail isn’t their fancy indicators or secret setups. It’s their rules.
Example: I entered a trade on BTC expecting a 1% move. My stop loss was set at 0.5%, and my take profit at 1%. The trade hit my take profit in under 2 hours, and I walked away knowing my potential loss was capped if it went the other way. Even a perfect setup can fail in the wrong market environment.Trading is not about luck — it’s about discipline. Here's my detailed guide to how I decide whether a trade is worth takingTrading is not about luck — it’s about discipline. Over the years, I’ve learned that the difference between traders who succeed…I usually check trend alignment using a combination of moving averages, trendlines, and price action. For example: if BTC is trading above its 50 EMA and making higher highs and higher lows, I consider long trades.
The reason many forex traders fail is that they are undercapitalized in relation to the size of the trades they make. It is either greed or the prospect of controlling vast amounts of money with only a small amount of capital that coerces forex traders to take on such huge and fragile financial ...
Trading Without a Plan: Whether one trades forex or any other asset class, the first step in achieving success is to create and follow a trading plan. "Failing to plan is planning to fail" is an adage that holds true for any type of trading. The successful trader works within a documented plan that includes risk management rules and specifies the expected return on investment (ROI).Failing to Adapt to the Market: Before the market even opens, you should create a plan for every trade. Conducting scenario analysis and planning the moves and countermoves for every potential market situation can significantly reduce the risk of large, unexpected losses.The reason many forex traders fail is that they are undercapitalized in relation to the size of the trades they make. It is either greed or the prospect of controlling vast amounts of money with only a small amount of capital that coerces forex traders to take on such huge and fragile financial risk.Only then will you be able to plan appropriately and trade with the return expectations that keep you from taking an excessive risk for the potential benefits. While understanding the macroeconomic, technical, and fundamental analysis necessary for trading forex is as important as the requisite trading psychology, one of the largest factors that separates success from failure is a trader's ability to manage a trading account.
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We tend not to have very good memories, and unless a trader keeps meticulous notes, one, two, or several trading mistakes a month could easily be forgotten. Thus, instead of realizing that personal mistakes caused a system to fail, it is the system that is blamed.
Risking 1% per trade, if I fail to take a 10R trade, my account loses out on 10%! On one mistake. That profit should have been mine based on my strategies, but due to errors, that profit is gone forever.Tallying how much trading mistakes cost is a valuable exercise for performance improvement and showing how much more money we could have made.Most traders don’t track whether they slightly over-bet or under-bet (position size) on a trade. Most of us don’t add up our missed trades or tally up how much our “random” or “gamble” trades cost us.An error can be made on a winning trade, while a losing trade could be executed perfectly. Maybe the winning trade was a random entry, or we entered too early or too late based on our strategy; even though it produced a profit, it was still an error based on our trading plan.
Variance and standard deviation help distinguish normal fluctuations from strategy failure · Compounding rewards consistency over volatility – small edges compound dramatically over time · Expected Value (EV) is the most important concept in trading that most retail traders never learn.
This attitude illustrates why 90% of retail traders fail: they skip the mathematical validation process that professionals consider essential.The psychological discipline to apply these principles consistently separates successful traders from the 90% who fail.The Law of Large Numbers requires at least 300 trades for statistical significance at 95% confidence level · Position sizing mathematics can make or break profitability – even profitable setups fail with improper sizingDo you sometimes wonder what separates successful traders from the 90% who fail? The answer isn't better market predictions or secret indicators - it's
In this article, we’ll break down why most traders fail, the common mistakes that kill accounts, and what you can do to avoid becoming part of the 90% club.
The markets are brutal. For every trader who makes it, dozens fail.The main reason 90% of traders fail isn’t lack of technical knowledge.If you’ve spent any time in the trading world — Forex, crypto, stocks — you’ve probably heard this scary statistic: 90% of traders lose money. That means only a small fraction of people who enter the…If you’ve spent any time in the trading world — Forex, crypto, stocks — you’ve probably heard this scary statistic: 90% of traders lose…
Traders fail due to being undercapitalized. Sometimes the market is easier to trade, and you make money right away. But usually, there is a learning curve, which means losing some of your capital at the start. After that learning curve, you still need enough capital so that the risk on any ...
Most of 2020 and 2021, for example, was the easiest money environment in a decade, and it lured in many new traders who now believe trading is easy. Most of those profits will transition back into the pros’ pockets over time (although some of the new traders will join the ranks of the pros, and some pros may fail to adapt and lose or cease trading).Not having and not following a trading plan is a big reason most traders fail. People without a plan are assuming they are smarter than people who do this for a living, and thus don’t need to prepare, plan, or practice.All the issues discussed in this section relate to prior sections, but since they are often quoted as the reasons people fail, I will tackle them individually. Here are some other trading-related reasons traders fail.Traders fail due to being undercapitalized. Sometimes the market is easier to trade, and you make money right away. But usually, there is a learning curve, which means losing some of your capital at the start. After that learning curve, you still need enough capital so that the risk on any single trade is small.
You can have the most detailed game plan but still fail to meet your trading goals if you don’t consciously work on them with every trade.
Becoming a trader is more than just learning from experience and setting goals, it's also about getting into the habit of addressing your trading mistakes.If you want to trade for another day until you become consistently profitable, you must learn how to successfully address your trading issues and get into the habit of working on (and meeting) your trading goals.Really knowing yourself and how you think can give you an edge that others in the market don't have. My goal is to share practical advice to improve your forex psychology without boring you to death. Hopefully, you can develop the mental edge you need to become the best trader you can be.Learn how to trade forex in a fun and easy-to-understand format.
Andrew Menaker, a psychologist and day trading coach, said he sees three common issues that cause retail investors to struggle.
Back in those days, all stocks were going up, so it was kind of easy. My brokerage account went from $25,000 to $150,000 over a six-month period, and I was featured in a book about my trading success. I still trade today.What many people don't realize is that they're not just trading in a vacuum, whether they're on a bank desk or in a hedge fund or trading their own money. Your whole life comes with you into every trade, whether you consciously realize it or not.There are some clients who are very frozen-deer-in-the-headlights. I see this often when I work with traders who are software engineers. Their background is all about precision, black and white, right or wrong.Journaling. All traders should be keeping what I call a real-time emotion journal. Ask yourself questions while you're engaged with the market. What am I feeling right now? Why am I feeling this way? When I feel this way, what do I typically do?
The promise of financial independence, the thrill of the markets, and stories of overnight success captivate countless newcomers. However, the reality is stark: most traders fail. Studies suggest…
The promise of financial independence, the thrill of the markets, and stories of overnight success captivate countless newcomers. However, the reality is stark: most traders fail. Studies suggest…Overcoming Common Pitfalls to Build a Successful Trading JourneyLet’s explore the most common mistakes traders make and, more importantly, how you can steer clear of them.Many traders enter the market without a concrete strategy.
However, the reality is sobering and contrary to expectations, because statistics show that the majority of traders lose money. This applies not only to beginners, but also to experienced traders who fail to adapt to the constantly changing market conditions.
LAGOS, Nigeria, 29 August 2025-/African Media Agency (AMA)/-In recent years, more and more Nigerians have turned to trading in financial markets as a way toMany traders enter the markets without clear rules, allowing emotions and financial pressure to dictate their decisions. “Frugal trading” is the tendency to trade based on immediate personal financial needs rather than a sound trading framework. This approach often results in forced trades with low risk/reward ratios.A trading plan defines which markets to trade, entry and exit rules, risk per trade, and maximum daily loss limit. Without one, traders act reactively, jumping from one trading framework to another based on social media posts, chat room tips, or unverified advice from other traders.The market is influenced by economic data, geopolitical events, interest rate changes, investor sentiment, and liquidity flows. Many traders do not understand how these factors interact. For example, not knowing how a central bank interest rate announcement affects currency volatility can lead to entering positions at the most dangerous times.
Time is probably the number one reason traders fail because they don't have enough time to be successful. It takes doctors, lawyers, engineers, etc., a minimum of 4 years to get a degree and become fully licensed to practice in the field. So, why wouldn't trading be different?
For instance, doctors usually have an 18% drop-out rate while going through school but have only a 4% fail rate when taking exams. Trading has a higher dropout rate, but for those who stick to it, it also has a higher success rate. Let's explore why "most traders fail" and see how you can be one of those traders who don't fail.Time is probably the number one reason traders fail because they don't have enough time to be successful. It takes doctors, lawyers, engineers, etc., a minimum of 4 years to get a degree and become fully licensed to practice in the field. So, why wouldn't trading be different?I have one other minor point I have thought about is how multiple accounts are calculated into these statistics. Undoubtably the failure rate of traders is high- but is it truly 90%+? I lost money at three different brokerages over two years- blowing accounts at two.From what I can tell it's all based on accounts that do multiple trades a day. So if they are just comparing accounts then, it isn't really a true statistic. Like I would count someone as a failed trader, if they have pursued it for couple years and still weren't profitable.
The biggest reason most day traders fail is that they really aren’t traders; they are gamblers. Day trading largely attracts individuals with a gambling mindset. In Taiwan, day trading dropped by 25% when a lottery was introduced in April 2002. When there is a large lottery jackpot, day trading ...
The biggest reason most day traders fail is that they really aren’t traders; they are gamblers. Day trading largely attracts individuals with a gambling mindset. In Taiwan, day trading dropped by 25% when a lottery was introduced in April 2002. When there is a large lottery jackpot, day trading activity declines.Traders with a speculative mindset are much more aware of risk and actively find ways to keep it contained. The most important thing a trader must do is protect capital, and that can only be done by controlling risk. 2. Manage capital carefully. The less capital you have to work with, the greater the chances you will fail as an active trader.The best trades need some time to work, and if you are impatient, the odds of failure greatly increase.If your time frames are inflexible, then there is a much greater chance that your trades will fail.
“95% of all traders fail” is the most commonly used trading related statistic around the internet. But no research paper exists that proves this number right. Research even suggests that the actual figure is much, much higher. In the following article we’ll show you 24 very surprising ...
After going over these 24 statistics it’s very obvious to tell why traders fail.“95% of all traders fail” is the most commonly used trading related statistic around the internet. But no research paper exists that proves this number right. Research even suggests that the actual figure is much, much higher. In the following article we’ll show you 24 very surprising statistics economic scientists discovered by analyzing actual broker data and the performance of traders.Some explain very well why most traders lose money.Among all day traders, nearly 40% day trade for only one month. Within three years, only 13% continue to day trade. After five years, only 7% remain.
Answer (1 of 2): The first reason you fail is because you think you can predict the stock market with 100% accuracy. Which is not true. Second reason is that trading is not an easy task as it looks like on YouTube. Most of the influencers only show you their winning trades because they wanna se...
