10 Reasons Traders Fail to Make Money Trading(거래자가 거래를 하지 못하는 10가지 이유)

 10 Reasons Traders Fail to Make Money Trading((거래자가 거래를 하지 못하는 10가지 이유)

 

By Nial Fuller in Forex Trading Blog

We have all heard the cliché statistic that something like 80 to 90% of traders don’t make money. So, you basically have two choices; give up your dream of being free from work, jobs and the drudgery(고된 일) of modern 9 to 5 society, or try to understand why most people fail at trading and work to make sure you are in the top 10 to 20% of traders who actually make money.

우리 모두는 80~90% 정도의 거래자들이 돈을 벌지 못한다는 진부한 통계를 들어본 적이 있다. 기본적으로 두 가지 선택이 있다. 일, 직업, 현대 9에서5 사회의 고된 일에서 자유로워지려는 꿈을 포기하거나, 대부분의 사람들이 왜 거래를 잘 하지 못하고 실제로 당신이 돈을 버는 상위 10~20%의 거래자들에 해당하는지 확인하기 위해 일하는지 이해하려고 노력하는 것이다

 

You have to take a hard look at yourself and decide what you want. Do you want to submit to the modern-day ‘slavery’ of bosses and jobs, or do you want to really have a crack(틈이 생기게 하다) and commit(맡기다) to learning how to trade and achieving consistency at what is really the only profession that can give you true freedom?

자신을 냉정하게 보고 원하는 것을 결정해야 한다. 당신은 오늘날의 상사와 직업의 '노예'에 복종하고 싶은가, 아니면 진정으로 당신에게 진정한 자유를 줄 수 있는 유일한 직업에 일관성의 달성과 거래하는 방법을 배우는데 전념하고 싶은가?

 

The first step is identifying the common reasons most people fail to make money trading and learn some solutions…

첫 번째 단계는 대부분의 사람들이 돈 거래에 실패하고 몇 가지 해결책을 배우지 못하는 일반적인 이유를 파악하는 것이다.

 

Problem #1: Not demo-trading first

먼저 데모 트레이딩 안 함

Why is not demo trading first, a problem? Well, for one, you need to learn how the trading platform you’re using works, before you try entering trades on it. You wouldn’t want to lose money unnecessarily just because you didn’t fully understand how the trading platform works.

왜 데모 거래는 먼저가 아닌가, 문제가 되는가? 우선, 거래에 들어가기 전에 당신이 사용하고 있는 거래 플랫폼이 어떻게 작동하는지 알아야 한다. 거래 플랫폼의 작동 방식을 완전히 이해하지 못했다고 해서 불필요하게 손해를 보고 싶지는 않을 것이다.

Next, trading live before you have actually learned how to trade your method, is a recipe (방안)to lose money. You need the screen time and to get some ‘runs on the board’, as well as some consistency, before committing to risking real capital in the markets.

다음으로, 자신의 방법을 실제로 배우기 전에 라이브 트레이딩은 돈을 잃는 것에 대한 레시피다. 시장에서 실제 자본을 투자하기 전에 스크린 타임과 몇 가지 '기판 위의 실행'과 약간의 일관성을 확보해야 한다.

I don’t recommend spending too much time demo trading however, 1 to 3 months is the ideal amount of time after you’ve learned a trading strategy. But certainly, before you ever try real money trading, you need to demo your trading method to get familiar with it. This will help you avoid losing money unnecessarily.

나는 데모 트레이딩에 너무 많은 시간을 보내는 것을 추천하지는 않지만, 거래전략을 배운 후 1개월에서 3개월은 이상적인 시간이다. 하지만 확실히, 실제 화폐 거래를 시도하기 전에, 당신은 그것에 익숙해지기 위해 당신의 거래 방법을 시연해야 한다. 이렇게 하면 불필요한 손실을 피할 수 있다.

Or course, real / live trading is going to be the best teacher of all, because the emotions of having real money on the line (그 선위에서)are present, but that doesn’t mean you should rush into it without some practice.

또는 물론 실제/실시간 거래는 최고의 스승이 될 것이다. 왜냐하면 그 선위에 실제 돈을 가지고 있는 감정이 존재하기 때문이다. 하지만 그렇다고 해서 어떤 연습도 없이 서둘러야 한다는 뜻은 아니다

 

Solution: Get a demo trading account

해결책: 데모 거래 계정을 얻는다

You can get my recommended demo trading account here. I recommend opening it up and getting familiar with placing trades on it, whilst studying my trading strategies.

여기서 내가 추천하는 데모 거래 계정을 얻을 수 있다. 나는 내 거래 전략을 공부하면서 그것을 개설하고  그것에 거래 하는 것에 익숙해지는 것을 추천한다.

Treat the demo account like it’s real money, even though it isn’t.(real money) The more closely you treat the demo account as if it’s real, the easier your transition will be when you eventually move to a live account. Read here about the differences between live and demo trading.

데모 계정은 그렇지 않더라도 실제 돈인 것처럼 대하라. 데모 계정을 실제 계정처럼 자세히 다룰수록 결국 라이브 계정으로 이동할 때 전환이 쉬워진다. 라이브 트레이딩과 데모 트레이딩의 차이점에 대해 읽어보십시오.

 

Problem #2: Making it overly-complicated

문제 #2: 지나치게 복잡하게  만드는 것

A big reason so many traders fail to make money is due to over-complicating the trading process. Really, people will over-complicate any aspect of trading, from the actual strategy they use, to how often they check the charts, to money management, trading is a very easy thing to over-complicate.

그렇게 많은 거래자들이 돈을 벌지 못하는 큰 이유는 거래 과정을 너무 많이 복잡하게 했기 때문이다. 실제로, 사람들은 그들이 사용하는 실제 전략에서부터 얼마나 자주 차트를 체크하는지, 돈 관리에 이르기까지 거래의 어떤 측면도 지나치게 복잡하게 할 것이다. 거래는 과대하게 복잡하게 하기 매우 쉬운 일이다.

 

Perhaps the thing traders over-complicate first, is their charts. It’s very common for beginning traders to think the more indicators they learn about and use the better off (낫게 되다)they will be. However, as I discuss in my article on why indicators will destroy your trading account, this couldn’t be further from the truth.

아마도 거래자들이 가장 먼저 지나치게 복잡하게 하는 것은 그들의 차트일 것이다. 초기 거래자들은 그들이 더 많은 지표를 배울수록 더 나은 결과를 얻을 것이라고 생각하는 것이 매우 흔하다. 그러나, 내가 내 기사에서 지표가 왜 당신의 거래 계좌를 파괴하는지에 대해 논했듯이, 이것은 사실과 더 거리가 멀수가 없다.

If your charts look messy, more like abstract modern art than a price chart, you’re probably over-complicating the analysis process. If you’re addicted to the lower time frame charts, you’re probably over-complicating things as well. If you’re sitting there staring at your charts for hours or reading economic news constantly, you’re also over-complicating it.

만약 당신의 차트가 지저분해 보인다면, 가격 차트라기보다는 추상적인 현대 예술에 가깝다면, 당신은 아마도 분석 과정을 지나치게 복잡하게 만들고 있는 것일 것이다. 만약 당신이 낮은 시간대 차트에 중독되었다면, 당신은 또한 일을 지나치게 복잡하게 하고 있을 것이다. 만약 여러분이 몇 시간 동안 차트를 응시하고 있거나 경제 뉴스를 계속해서 읽고 있다면, 여러분은 또한 그것을 지나치게 복잡하게 하고 있는 것이다.

 

Solution: Simplify해결을 간단하게 하는 것

 

Remember, the primary piece of data we are all trying to analyze and trade, is price. So, step one to not over-complicating trading, is not covering up (덮다)the most important thing in any market, which is the price action. You need to remove indicators and learn how to trade on a stripped-down(벌거벗은) / naked price chart, before doing anything else.

우리가 모두 분석하고 거래하려는 주요 데이터는 가격이라는 것을 기억하십시오. 그러므로, 거래의 과소비를 하지 않는 첫 번째 단계는 어떤 시장에서 가장 중요한 것, 즉 가격 행동을 은폐하는 것이 아니다. 당신은 지표를 제거하고 다른 것을 하기 전에 헐벗은 가격표와 거래하는 방법을 배울 필요가 있다.

Also, remember that adding variables, whether they are indicators, news or fundamentals, other peoples’ opinions, or anything else, is only going to over-complicate your mind and as a result, your trading process. Remember, keep it simple stupid.

또한 지표가 되든, 뉴스가 되든, 펀더멘털이 되든, 다른 사람들의 의견이 되든, 다른 어떤 것이든 변수를 추가하는 것은 단지 당신의 마음과 결과적으로 당신의 거래 과정을 지나치게 복잡하게 할  뿐이라는 것을 기억하라. 명심해, 단순하게 멍청하게 있어.

 

Problem #3: 문제3

Not understanding and accepting that losses are part of the game

손실을 게임의 일부분이라는 것을 이해하지 않거나 받아들이지 않는 것

One of the biggest problems for beginning traders, one that often causes them to blow out their accounts and give up, is accepting that losses are part of the trading game. You have to understand this and accept it, as well as plan for how you will handle losses. Traders often try to avoid losses by not using stop losses or hedging, but these actions only lead to bigger losses and faster account blow outs. You can’t avoid losing trades.

초창기 트레이더들에게 가장 큰 문제 중 하나는, 종종 그들이 그들의 계좌를 날려버리고 포기하게 만드는 것으로, 손실이 트레이딩 게임의 일부라는 것을 받아들이는 것이다. 이 점을 이해하고 받아들여야 할 뿐만 아니라 손실을 어떻게 처리할 것인지에 대한 계획도 세워야 한다. 트레이더들은 종종 정지손실을 사용하지 않거나 위험회피함으로써 손실을 피하려고 하지만, 이러한 행동은 더 큰 손실과 더 빠른 계정 붕괴로 이어질 뿐이다. 거래에서 손해를 면할 수 없다.

Traders tend to freeze up when they lose. They see losses as a very negative thing and the emotional responses they elicit (이끌어내다)in a trader can be very dramatic. A trader may become afraid to take the next trade and ‘hide’ for a while, or they may trade too small on the next trade, only to see it win (but a much smaller winner than otherwise possible). Traders also tend to feel revenge after a loss, and they carry out this revenge by jumping back into the market to try and make back the money they just loss, which of course usually only leads to more losses, thus further cementing the cycle of bad trading habits.

거래자는 지면 얼어붙는 경향이 있다. 그들은 손실을 매우 부정적인 것으로 보고 그들이 거래자에게서 이끌어내는 감정적인 반응은 매우 극적일 수 있다. 거래자는 다음 거래를 하는 것을 두려워하고 잠시 동안 '숨기기'를 하거나, 다음 거래에서 단지 승리를 볼수 있기에는  너무 적은 거래를 할 수 있을 것이다 (그러나 다른 거래보다 훨씬 적은 승자). 거래자들 또한 손해를 본 후에 복수를 느끼는 경향이 있고, 그들은 그들이 방금 잃었던 돈을 되찾기 위해 다시 시장에 뛰어들어 이 복수를 수행하는데, 이것은 물론 보통 더 많은 손실을 초래할 뿐이며, 따라서 나쁜 거래 습관의 순환을 더욱 공고히 한다.

 

Solution: (해결책)

Understand, accept and plan for losses

손실에대한 계획을 이해하고 짜고 받아들인다

 

The solution to losses, is to understand them and accept they will happen and formulate a loss / risk management plan.

손실에 대한 해결책은 손실에 대한 이해와 발생을 받아들이고 손실/위험 관리 계획을 수립하는 것이다.

It’s important to understand that any one trade can be a loser, even if your edge is say 80% profitable. An 80% win rate still doesn’t mean you know when those 20% losers will show up. So, out of 100 trades, you could have 10 losers in a row, can you handle that?? Think about how you would plan for that. To learn more about this principle, check out my article on randomly distributed wins and losses.

비록 여러분의 우위가 80%의 수익성이 있다고 말하더라도, 어떤 거래든 패배자가 될 수 있다는 것을 이해하는 것이 중요하다. 80%의 승률은 여전히 20%의 패자가 언제 나타날지 아는 것을 의미하지 않는다. 100개의 트레이드 중에서 10개의 패자가 연속으로 나올 수 있는데, 감당(다룰 수 )할 수 있겠니? 그것을 어떻게 계획할지 생각해봐라. 이 원리에 대해 자세히 알아보려면 무작위로 배포된 승패에 대한 내 기사를 확인하십시오.

 

Next, it’s critical that you understand the difference between a good loss and a bad loss. Now, maybe you’re thinking, “what the heck is a good loss?”. A good loss is one that happened as a result of you trading your edge with discipline and patience. Meaning, you took a trade that fit with your trading strategy and trading plan and it simply didn’t work out because it was a natural statistical loser. No harm, no foul.(반칙)

다음으로, 좋은 손실과 나쁜 손실의 차이를 이해하는 것이 중요하다. 자, 어쩌면 여러분은 "대체 좋은 손실이 무엇인가?"라고 생각하고 있을지도 모른다. 좋은 손실은 당신이 당신의 우위를 규율과 인내로 거래한 결과로 생긴 것이다. 즉, 당신은 당신의 거래 전략과 거래 계획에 맞는 거래를 했지만, 그것은 자연적인 통계적 실패자였기 때문에 잘 되지 않았다. 큰 피해가 없으면 괜찮아.

 

A bad loss, is one that you could have avoided. These are typically instances of over-trading, or trading when your edge wasn’t present. In my opinion, these bad losses are the biggest reason most traders fail. Most traders simply trade way too often, and so they are essentially gambling. One thing we all know about gambling is that the house always wins, the house in the case would be other traders trading against you. So, if you want to lose your money, trade frequently. You have to work to avoid these bad losses, at all costs.(어떤 희생을 하더라도)

나쁜 손실은 피할 수 있었던 것이다. 이것들은 일반적으로 당신의 우위가 없을 때 오버 트레이딩이나 트레이딩의 예들이다. 내 생각에, 이러한 나쁜 손실들이 대부분의 거래자들이 실패하는 가장 큰 원인이라고 생각한다. 대부분의 거래자들은 그저 너무 자주 거래해서 본질적으로 도박을 하고 있다. 우리 모두가 도박에 대해 알고 있는 한 가지 사실은 그 집(오야)이 항상 이기고, 사건의 그 집(오야)은 당신과 상대하는 다른 거래자들이라는 것이다. 그래서, 돈을 잃고 싶다면, 자주 거래하라. 무슨 수를 써서라도 이런 나쁜 손실을 피하려면 일을 해야 한다.

Problem#4: Focusing on money not trading

 

I have found that most people become so focused on money, profits and rewards, that they lose sight of what it actually takes to achieve them.

 

Do you think a professional basketball player or golfer is thinking about dollar signs and profits in the heat of a game or tournament? No! I can guarantee you they are not. They are solely focused on the game they love and are passionate about and how to best perform. The golfer has to play each stroke and each hole across multiple rounds to win a tournament, he is not thinking about money. He is thinking about the mechanics of the game, his process, his mindset, etc.

 

Similarly, if you’re overly-focused on money and not the mechanics and process of trading, you are not going to be in the markets very long.

 

Solution: Focus on the journey, not the destination

 

The solution, is to simply realize that to make money trading, you can’t be always thinking about making money. The goal is to make money of course, but the journey is trading, and without executing the journey properly, you won’t ever make money. I get emails almost every day from beginning traders asking me how much can they expect to make per month or how much should they risk, etc. These are the wrong questions to be asking. What they should be asking is, “how do I trade properly?”, “how do I learn to read the charts?”, and similar questions.

 

It seems since trading is about speculation and making money, most people don’t want to focus on the mechanics and process, but without focusing on those things you will never make it. You have to be passionate about trading, about playing and winning the game, not only about making money.

 

Problem #5: Not learning the daily chart time frame first.

 

Most newbies want to try and day-trade. They’ve got some idea in their minds about day trading and they all seem to want to look at short time frame charts before focusing on the daily chart. Who can blame them? With all the misinformation out there, on other websites and forums, it’s easy to start off being addicted to the tick by tick movement of 1 and 5 minute charts. However, what you have to learn quickly, is that these time frames are just noise.

 

The market’s real story can only be read on the higher time frames, zooming out and seeing the whole picture. Daily price bars tell an entire day of information and as a result, they carry more weight.

 

Solution: Analyze and trade only the daily chart at first

 

The solution to the problem of not learning to trade the daily chart first, is to only focus on the daily chart time frame. I have written many articles explaining why you should trade higher time frames, so I won’t list all the reasons here. But, suffice it say, if you don’t understand the key levels and how to find and trade trends on the daily chart, you are never going to make money on any time frame under the daily.

 

If you want to trade intra-day charts, you must first understand what the daily chart is doing, in terms of trends and levels, as well as price action. The solution, is both to understand the importance of learning the daily chart and then actually only focusing on it until you’ve mastered it.

 

Problem #6: Poor money management

 

Poor money management is a huge problem that dooms many traders (most actually) before they even give themselves a chance to get started. The root cause of this problem is both poor education / low knowledge on the importance of money management, as well as greed. Many people simply don’t want to accept that they cannot risk a lot of money per trade, so they crank up the risk right out of the gate and promptly proceed to lose all their money thus.

 

Trading with money you can’t afford to lose and risking too much per trade are the two biggest money management mistakes people make. Similarly, not understanding how much you can mentally and financially lose per trade and still be OK is another aspect of this.

 

Solution: Understand and plan

 

So, what is the solution to poor money management? Well, it begins with acknowledging that you can’t risk money you can’t afford to lose. If you are trying to fund your account with a credit card because you don’t have extra cash to trade with, you’re doomed. If you’re putting more money in your account than you know you should be using, you’re doomed.

 

When you start, you’ve got to decide if you even have any money to trade with. Trading, speculation, is risky, and you have to approach it from the mindset that you could lose the money you’re trading with. I am not saying you WILL lose it all, (If you get training and are disciplined you won’t lose it all) but I am saying you have to be mentally OK with potentially losing it all. When we approach trading from this mindset of being OK with losing, we put ourselves in the best position to win, as ironic as that may sound to you.

 

The two keys to money management are funding your account only with money you really don’t need, and not risking more than you care to lose per trade. I tell people that you should set your 1R per trade risk at an amount so that if you lose 20 straight trades you could still trade that same amount. Read more about this here.

 

Problem #7: Trading too often

 

Trading too often, or over-trading, is probably the number one account-killer among traders. Nearly every trade has over-traded at some point. The ones who figure out they are doing it before it kills their account, are the ones who stick around long enough to find some success. Sadly, most do not figure it out or they simply can’t stop doing it.

 

What I am talking about here is trading when your edge or strategy is not present. It is a mistake born out of greed and impatience. I know you badly want to make money in the markets, but I can promise you that trading more often is not how you do it. Looking at lower time frames is a big reason traders over-trade, also, trading from mobile phone apps is a problem.

 

These things lead to addiction to the charts, and that obviously leads to over-trading. Over-trading is essentially gambling, and as I said earlier, the house always wins (meaning, the casino, or the broker or other traders, not you).

 

Solution: Slow, slow, slow it down…

 

The solution to trading too much is to slow down all aspects of your trading. This means, looking only at the daily chart for a while, not using your phone to trade and only analyzing the charts a couple of times per day for 20 to 30 minutes each. You need to take a sniper approach to trading, not a machine-gunner approach. You must understand, accept and act on the fact that less is more in trading.

 

Problem #8: Not understanding market dynamics or how to read price action.

 

Obviously, if you don’t understand how markets tend to move and the basics of price dynamics / price action, you aren’t going to make money as a trader. Yet, time and time again, I read emails from traders who clearly don’t understand basic tenants of market dynamics and price action.

 

Some examples of this problem are:

 

Traders trying to constantly trade breakouts. This often leads to losses because they don’t understand false breaks.

 

 

Not understanding pull backs – trying to pick tops and bottoms or entering when the market is extended.

 

 

Not understanding how to read the story on the chart. In other words, you need to look at the entire sequence of bars, from left to right and what they are telling you, instead of focusing on just one price bar.

 

Solution: Learn and anticipate, don’t just react

 

The price action in a market reveals important information, such as, key levels and previous price action signals, event areas and other things that we should have marked in advance. Mark these things on your charts ahead of time, as these levels and pieces of information will guide us on future trades.

 

Here are some articles that can help you with this:

 

 

How to anticipate your trades

 

Trading is a game of anticipation, not reaction

 

 

Problem #9: You have no daily mantra or routine

If you don’t have a routine, your trading is going to become haphazard and out of control. The way you conduct yourself will carry over to your trading results. If you don’t have any type of consistency in the way you approach the markets, you cannot expect to have consistent trading results.

 

The problem here is that many people don’t start off learning from a mentor or someone more experienced than them. Instead, they believe they can just ‘wing it’ or go it alone and ‘figure it out’ by themselves. However, what ends up happening is that they have no real trading strategy that they’ve mastered, they are instead just randomly look at the markets hoping they will somehow become profitable.

 

Solution: Learn how to create routine and consistency

 

I have several articles on my daily routine and how I approach the markets. My routine is one that is a combination of life, strategy and mind. I am not looking at the charts all day. I know what my strategy is and I typically have two to three times per day that I look at the charts in peace and quiet.

 

Here are some articles where you can read more about this:

 

Daily trading routine of Nial

 

FulleExactly how I place trades

Daily trading affirmations

Problem #10: Trading without professional training

Trading without professional training, not obtaining real trading knowledge, and failing to master skills before going into the battle of trading, is a killer for any trader and their account.

 

 

It never fails to mystify me how or why anyone believes they can succeed at trading before they AT LEAST have learned a solid price action based strategy. I believe everyone needs professional training and to obtain real chart reading skills before they can even hope to have a chance at making money trading. Financial market speculation is not for the weak-minded, and you really need a guide and solid education before you go risking your hard-earned money in the market.

 

There is no other serious profession on Earth where people think they can avoid professional training and somehow become successful. Whether it’s a professional athlete, a doctor, lawyer or anything else, they all require training by a professional

Solution: Learn from a professional

As I discussed above, learning from a professional is essential for learning any skill. You should want to give yourself the best chance at succeeding in the market, and that means learning how to trade from someone who has already made all the mistakes that you will make and can teach you how to avoid them. Doing this, will save you money, time and an immense amount of mental frustration.

 

My intention in today’s lesson was to give you some solutions for dealing with the most common reasons traders fail to make money. Remember, I have walked the exact same path your walking right now when I first started my trading career and I too have experienced most of these problems along the way. It’s not enough to be aware of the problem, you must actually implement each solution consistently.