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Why 95% Fail In Long Run ?

 

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 1)  Read This First

 

 2)  Why SO IMPORTANT To Keep A Trading Journal ?

 

 3)  Why Are You Always Late & Wrong With Trend ?

      

 4)  When You STRUGGLE when Account Is Small ?

     

 5)  Is Using Stop-Loss Really Protecting Your Capital ?

      ( HARD TRUTH ! )

 

 6)  Be " Slightly More Patience Instead " & Win More !

      ( Simple Yet Effective ! )

 

Posts Tagged ‘Stop Loss Strategy For Forex Trading’

Is Using Stop-Loss Really PROTECTING Your Capital In Forex Trading ? ( HARD TRUTH )

Dear Valuable Friends,

Still relying on Stop-Loss to so called

=> ” Protect ” Your capital….right ?

But is using A Stop-Loss Really PROTECTING Your Capital

and would help You succeed at Your Forex Trading in the long run ?

Or it is only causing You to ” LOSE MORE UNNECCESSARILY ” ?

( due to Your Stop-Loss keep getting HIT too many times….UNNECCESSARILY )

Read on below and I shall unveal the ” HARD TRUTH “about using a Stop-Loss

( that no other would be sharing on )

Because MOST GURUS said that You ” NEED ” to Use A Stop-Loss

in case the TREND goes against YOU

and NEVER TURN BACK again…….right ?

At least You can protect Your Precious capital when that occurred……right ?

So You ” faithfully ”  use a Stop-Loss whenever You trade in the Forex market

as You believe that is ESSENTIAL to Help You to SUCCEED in the long run

………right as well ?

BUT….think about it :

I BELIEVE 95% out there are using ” Stop-Loss ” as well….agree ?

Then how come 95% are actually FAILING MISERABLY

in about 1 – 3 Years after ” trying ” ?

Should be 95% SUCCEEDING instead what……..right ???

( Since they are ALSO using a Stop-Loss to so called ” Protect ” their Capital !! )

Ever ( even)  THINK about that ……..or not ?

If You did NOT

then obviously You are just like MOST out there…..

merely ” following BLINDLY “…..that’s all !

( because the so called GURUS said so …..

* frown * )

———————————————————————————————

The ” NEVER – EVER – REVEALED ( NASTY ) TRUTH “

about using STOP-LOSS in Your Trading !

———————————————————————————————

Most of the so called Gurus out there are simply ” Painting the BEAUTIFUL things ” for You

but they do NOT disclose the ” DARK SIDE ” at all about using a Stop-Loss

Why are they NOT DISCLOSING THE DARK SIDE at all ?

Because which HUMAN does NOT like to hear ” BEAUTIFUL THINGS “……right ?

By feeding ” beautiful things ” to a newbie

It means most ” Naive Ones ” would HAPPILY BUY from them …!!

What these ” dis-honest merchants ” CARED about most => are simply PROFIT……that’s all

So what for telling You the ” DARK SIDE “…..

ONLY to PREVENT You from BUYING from them……right ?

SEE the ” DARK SIDE ” now…..too ?

————————————————————————————

Let me SPILL the ” UGLY TRUTH ” for You

….once & for all :

————————————————————————————

( Frustrating Scenario #1 )

When You are using ” Too SMALL ” a Stop-Loss

You are ALWAYS WORRYING about Your STOP-LOSS

getting HIT ” UNNECESSARILY ”

only to see the Price GOES THE WAY YOU WANTED INITIALLY !!

( Frustrating Scenario #2)

When You are using a ” STOP-LOSS TOO BIG “

You are also ( Constantly ) WORRYING that if Your STOP-LOSS gets HIT…

…..You NEED to work EVEN HARDER

JUST TO RECOVER the LOSSES to merely ” Break-Even ” !!

Yes….in Scenario #1 also Wrong !

…in Scenario #2 also Wrong !

It means YOU ARE Constantly FEELING :

=>  ” WORRIED….STRESSED – OUT….FEARFUL !”

as long as You are relying on a Stop-Loss to so called ” Protect ” Your Capital !!

Is this a ” Healthy State of Mind ” at all to SURVIVE in the long run ?

Certainly NO !!

( Foolish Scenario #3 )

Some ” ignorant traders ” even resort to ATTEMPTING something even more ” Foolish ”

which is :

They Actually TRIED to find out HOW TO PLACE A PERFECT STOP-LOSS

SO THAT IT WOULD NOT GET HITS UNNECESSARILY !! ”

But Why I Said It Is FOOLISH ?

Because right from the very beginning

the ” REASON ” of WHY You are using a STOP-LOSS

is because Your STRATEGY is NOT CAPABLE of 100% WINNING

right ??

That’s why You rely on a ” Stop-Loss ” to Control The MAXIMUM RISK

You would like to undertake

…..right ?

If that’s the case

how to even DREAM of finding out the PERFECT STOP-LOSS Placement ?

It just DOES NOT MAKES SENSE…..isn’t it ?

* frown *

Let me prove it to You using one of the ” most reliable ” set-up

that most are trading on :

( this is a typical textbook ” Illustration ” )

( This is a REAL LIFE version ) :

This Is How Most Would Trade This ” Reliable BULLISH Set-Up ” :

1) Price is in an Obvious Up-Trend

2) It has hit a point of Retracement now

3) Price has Retraced to the 50 – 61.8% Retracement Level now

( which also coincides with the Previous Resistance – Yellow Line )

4) Even a ” Bullish PIN-BAR ” has formed at that level

5) A very ” Ideal Set-up ” to BUY again

6) Stop-Loss placed ” slightly below the recent LOW ”

( But such shit happens after ) :

As the market is nothing but ” Chaos & Unpreditablity “

such SHIT would surely occur…again & again

and when that happened

We Have already LOST one trade and of course $$$$ in our account !

If these occurred a few times in A ROW

we would be LOSING ” a few times in a ROW ” as well

definitely would be ” HARD ” on our Confidence & Morale

Enduring on a short-term basis of maybe 1 – 2 years

maybe still ” Do-able ”

But how about 5 – 10 Years ?

I think that would already RUIN our Confidence & Morale ” TERRIBLY ” by then !

That is exactly WHY Majority 95% could NOT even SURVIVE for at least 3 – 5 years

in any financial trading game !

Now You understand I hope….

—————————————————————————

So HOW to OVERCOME THAT  ?

& NOT FAIL like Majority 95% ?

( I mean having to Constantly ” Worry “

about whether would YOUR STOP-LOSS

would GET HIT again ……UNNECCESSARILY

or NOT !! )

——————————————————————————–

( My Solution for You ) :

INSTEAD of  ( Foolishly ) finding the ” Perfect Stop-Loss Placement

You should strive to go for ( Only ) HIGH – ACCURACY Strategies !

Example:

If You are aiming 50 Pips

and Your Stop-Loss is also 50 Pips

Your Rewards vs Risk => 1 : 1

Let’s say previously Your Accuracy was => 60%

it means out of 10 Trades

You would WIN 6 => 6 x 50 => +300 Pips

You would LOSE 4 => 4 x 50 => -200 Pips

So You would Profit about => 300 – 200 => 100 Pips end of the day

Let’s say You now MANAGED to INCREASE Your Accuracy to 80%

it means You would be WINNING 8 => 8 x 50 => +400 Pips

and You would be LOSING ( just ) 2 x 50 => – 100 Pips now instead

End of the day, You would be Profiting => 400 – 100 => 300 Pip NOW !

See the ” Huge Difference ” when You can INCREASE Your Accuracy

from just 60% to 80% ?

And that’s what I mean by :

You should strive to go for ( ONLY ) HIGH – WINNING ACCURACY Strategies !

instead of trying to find the ” Perfect Stop-Loss Placement “

or wasting time learning strategies with ” Winning Accuracy LOWER than 70% ! “

See the ” Logic ” behind my explanations now ?

——————————————————————————————-

Now the HARD TRUTH about using a Stop-Loss

in Your Forex Trading …

——————————————————————————————–

One thing for SURE :

Whether You belong to “ Scenario #1 or #2 or #3 ” kind of STOP-LOSS TRADER

meaning as long as You are using a STOP-LOSS for Your trades

You are Going to ( also ) experience  :

HUGE AMOUNT OF STRESS + FEAR + UNCERTAINTIES

( due to constantly WORRYING whether => would Your Stop-Loss get HIT UNNECCESSARILY or not !! )

until You cannot take it anymore !

( some even HIT MENTAL-BREAKDOWN too ! )

Because as a ” normal ” human

who would want to be ” Constantly Worrying “…..right ?

Moreover, as we have NO CONTROL on the DIRECTION of the market at all

( unless You have TRILLIONS $$$ at Your disposal….

maybe still possible for You to MOVE the market at will ! )

it simply means You are  ” Worrying ” about something

that You do NOT have FULL CONTROL on !

That makes it Very ” Detrimental ”  indeed!

And that’s HOW Majority 95% chose to

( Painfully ) GIVE UP totally

after ” trying ” for about 1 – 3 Years  in this forex trading game

Well……..You might think I am talking nonsense here

Just try to RECALL this Scenario Yourself :

” How many times have You TRIED to REMOVE THE STOP-LOSS TOTALLY ?

or actually CHANGE THE STOP-LOSS to a BIGGER SIZE ?

just to AVOID Your Stop-Loss from

GETTING HIT ? “

I am SURE……many many times You have DID IT !

Because during my newbie’s days

I was also LIKE THAT !

It is just HUMAN NATURE !

Which ” Sane ” HUMAN wants to LOSE MONEY……right ??

IMAGINE…….You are only trading for a few months or at least 1 or 2 years NOW

already You are feeling the ” HUGE STRESS , FEAR & UNCERTAINTIES “ from using a Stop-Loss

( ..from constantly WORRYING that Your stop-loss would be HIT !! )

CAN YOU IMAGINE such ” STRESS + FEAR + UNCERTAINTIES

MULTIPLY by another 5 YEARS ?

x 10 YEARS ?

x 15 YEARS ?

It is ” On-Going ” ….for sure

because if You STOP trading LIVE

You CAN”T make PROFIT $$$ at all ……agree ?

Currently…..pehaps Your STRESS + FEAR + UNCERTAINTIES

=> 35% of Your MAXIMUM THRESHOLD


1 Year later ?

2 Years later ?

3 Years later ?

5 ?

6?

7 ?

10 ?

The amount of STRESS + FEAR + UNCERTAINTIES would ” SNOW-BALL

until You COULD NOT TAKE IT ANYMORE

( and that’s how some traders actually HIT MENTAL-BREAKDOWN ! )

Seriously…..do You want that to HAPPEN to You at all .?

I am SURE YOU DONT” WANT……right ?

But if You DON”T USE a STOP-LOSS at all….

One BAD trade

….there goes Your entire account => MARGIN CALL !

HOW like that ?

————————————————————————

SO THE SOLUTION TO OVERCOME

THIS COMMON OBSTACLE ?

————————————————————————

1) You should Strive to achieve HIGHER WINNING ACCURACY

don’t just settle for merely 50% – 60% on average

as most Professional Traders ” Avocated ” so !

Try to go for 70%….80%…..or even 90% Winning Accuracy !

It can be done

as long as You put Your heart & soul into ” Mastering ”

How To Trade With ( RAW ) Price Action in the forex market

and nothing else

Such as this =>  ” ( Pure ) Price Action Strategy Part 1 “

as well as this => ” ( Pure ) Price Action Strategy Part 2 “

Your ” Winning Accuracy ” would definitely IMPROVE SIGNIFICANTLY too !

Because You are now trading the ” Much More RELIABLE Set-Up ” in the market instead !

Makes sense right ?

Think about it this way :

when You trade with just ” RAW PRICE ACTION ” in the market

You are actually looking at the most ” Accurate & REAL-TIME ” data for Your analysis

( NON-Lagging at all unlike most of the technical indicators’ based strategies )

and no other strategies around would enable You to achieve that at all

that’s why !

2) To OVERCOME the ” Huge Amount Of Stress + Uncertainties “

( that are inevitable when trading any financial market with a STOP-LOSS )

the most ” Effective way ” to OVERCOME  such ” Emotion Demons ” is to :

=> Risk Small

Consider this :

When You risk just 2 – 5% per trade

You only feel ” ( slight ) STRESS + UNCERTAINTIES “……

BUT when You RISK A =>  ” scary ” 10% – 30% PER TRADE

of course Your ” STRESS + UNCERTAINTIES ” would also

MULTIPLY RELATIVELY

right ?

That’s only ” Logical “……

So why not try out the ” 2 simple changes ” that I suggested so far ?

If You do not try, You won’t know …right ?

Of course, if they are NOT ” Effective ” at all

I would NOT even bother ” suggesting ” them in the very first place….

* smile *

I KNOW that in this :

=> ” Why Majority 95%  Surely Fail Eventually ”  Section of my blog

I have been giving fellow traders (including You)

alot of ” Problems ” to find ANSWERS for….

WHY am I doing that ?

Because these are the ACTUAL PROBLEMS that would most likely

cause MOST TO FAIL MISERABLY eventually !

Of course if You truly WANT to SUCCEED

You got to find ANSWERS for such PROBLEMS too…….right ?

Else You Are MERELY

TRADING BLINDING….& HOPING FOR THE BEST ! “……

and You would Most Likely FAIL like the Majority 95% too eventually !

It is totally Nonsense if one simply chose to ” ignore ” that obvious fact now !

I know most of You guys would simply HECK CARE about such ” WARNING ” of mine today

because You guys just DO NOT KNOW HOW TO FIND ANSWERS at all !

It is just HUMAN NATURE to choose to ” Escape from REALITY “

when hits with PROBLEMS that are hard to SOLVE!

Remember :

That’s a ( truly ) LOSER’S MINDSET !

Instead of that, You should THINK like an ELITE:

( Meaning…..)  YOU do not RUN away from Problems

YOU FACE them and CONQUER them !!

Are You a LOSER to be ?

or You also WANT TO BE A TRUE ELITE as well ??   ( like me )

Well……Only You can answer that !

🙂

To Your ( True ) Forex Success & FINANCIAL FREEDOM,

Aaron Tan ( your trading friend  )

—————————————————————————————————————–


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