thread: Why are most retail traders usually on the wrong side of the market?

1 question that's frequently asked a lot is why do 95% of traders (or whatever the statistic is) lose? The answers range from anything to money management that is poor to allowing losers and cutting on winners run.

One thing I don't hear about is that almost all retail forex traders are on the wrong side of the market. When you have a look at the forex sentiment indexes published by the likes of OandA and dailyfx.com which publishes it is'SSI' it appears that most retail for traders are always on the wrong side of the larger trend. What's this? What are your thoughts?

EDITED -

Thanks to everyone for all their opinions, it has helped me reach some decisions that I've placed on my website http://www.myforexdot.org.uk/whyretailforexiswrong.html although I'm always learning. It's good to get a lot of feedback and thoughts from so many traders, especially the ones who're kind enough to share their knowledge with newbies. Thanks again.

Hmmm.... So many opinions.

Personally, I'll say, traders are often and most often than none of the wrong side of the market because the refuse to FIRST ascertain the market state.
Is your market trending? If yes, down or up? If up favor buys and vice versa for down. If ranging, stick out!

Doing this will save one from lots of false signs of the two TA and FA.

Each of the response here miss the point . The truth is that someone has to be like that about the side of your trade, simple and plain. The market isn't honest, and we are really the hunted in the market plain and simple, market sentiment only shows you who is getting slaughtered and how many, and also you are able to join in that slaughter and make money or you are able to put you head back in the sand and pretend that most traders simple don't understand how to trade.

I believe they simply see where most of us have stops and so they move the price ....so it feels like the majority of trader got it wrong. . .but it is not true...

Most retail traders shed since the fx market is rigged. The banks command it. It is not and will not be a level playing field. Your chances of success are zero. You would be better off going to Las Vegas. At least in Vegas, you can find some beverages and a series ( and there are a few fantastic buffets). In forex, you lose your money without being amused.