One question that's often asked a lot is why do 95% of traders (or whatever the statistic is) lose? The answers usually range from anything to bad money management to cutting winners and letting losers run.
One thing I don't hear about is that most retail forex traders are on the wrong side of the market. If you look at the forex sentiment indexes published by the likes of OandA and dailyfx.com which publishes it's 'SSI' it appears that most retail for traders are almost always on the wrong side of the larger trend. Why is this? What are your ideas?
EDITED -
Thanks to everyone for all their comments, it's helped me reach some conclusions that I've put on my blog http://www.myforexdot.org.uk/whyretailforexiswrong.html although I'm always learning. It's good to get such a lot of feedback and ideas from so many traders, especially the experienced ones who're kind enough to share their knowledge with newbies. Thanks again.
One thing I don't hear about is that most retail forex traders are on the wrong side of the market. If you look at the forex sentiment indexes published by the likes of OandA and dailyfx.com which publishes it's 'SSI' it appears that most retail for traders are almost always on the wrong side of the larger trend. Why is this? What are your ideas?
EDITED -
Thanks to everyone for all their comments, it's helped me reach some conclusions that I've put on my blog http://www.myforexdot.org.uk/whyretailforexiswrong.html although I'm always learning. It's good to get such a lot of feedback and ideas from so many traders, especially the experienced ones who're kind enough to share their knowledge with newbies. Thanks again.