90% of traders lose money?

There’s some, collated from numbers of brokers’ anonymous customers’ accounts, but it doesn’t really prove very much, because it isn’t published frequently enough and doesn’t monitor the turnover of losing traders, which is what you’d really need to know, to interpret the figures.

(Via the site at leaprate.com, somewhere, you can find some statistics from a company that tracks accounts at various forex brokers. It’s not much use, really, for the reasons I mentioned above, among others, but it does consistently demonstrate that FXCM has the smallest proportion of profitable customer accounts and Oanda one of the highest. No surprise, there!).

See: Do 90%-95% of traders fail? Some actual data

FXCM’s SSI indicator is a perfect example how most traders buy the wrong side of a trend or move, Look at the S&P in this chart, 88% of FXCM’s traders are currently short the S&P, by the way the S&P hit a new all time high today


I don’t think that example is necessarily accurate. The S&P is moving up, so a trader entering a short is certainly in drawdown on that position - however where they close the trade determines if they register a loss. For example, said trader may exit the trade on a pullback, and in profit. (Often called contra-trend trading). Having said that I do agree with the premise of your statement, that most retail traders are on the wrong side of the market.

There was a study published on the results of the retail Forex market in France, where over a 4 year period, 89% of retail traders were “experiencing losses”. I do not have the link though I do remember the study was published in Forex Magnates.

I would guess the retail forex market in other jurisdictions would show similar results.

If you follow the SSI you will see as soon as the S&P starts turning down, most of those traders currently short, will start closing their shorts, and as price continues to move lower over several days, the shorts will continue to decline until long positions become the majority of traders.

What is happening is inexperienced traders tend to hang on to their losing positions, until they can no longer take the pain of seeing their account decline or worst they blowout their account. And when they have a winner they take quick profits, missing out on big moves.

if you would like to trade without losses you should have good knowladge about trading, i recoomend you to read some forex blogs, for example i have read interesting articles on liteforex broker site. about brokers you should choose by yourself

Right on :35:

Trading without loss I think impossible in forex, trend market very dynamic and sometime unpredictable, loss also as part in trading I think but as trader need also manage these risk and always make sharp trading skill analysis

The numbers tend to suggest your belief is wrong. See 301 Moved Permanently

It’s been proven - to a certain degree, and that’s as close as anyone of us will get to a real and honest answer. As linked by [I]rhodytrader[/I], have a look.

I would think that’s probably right, for most people, most of the time. That’s in [B]huge contrast[/B] to reading accredited textbooks, though.

What goes into forex “blogs and articles” mostly goes there for promotional/marketing purposes, and that’s exactly what you need to avoid, because it’s usually been published with no quality control, no editorial approval, no peer review, and for reasons more to do with promoting other people’s businesses than with helping you.

This is why you’re generally far, far safer and better off reading long-established, accredited, mainstream, orthodox textbooks (to which very few of the above problems generally apply!) instead. Bear in mind that you’re trying to be one of a small minority, who ever achieve what you’re trying to do, so you really can’t afford to stack the deck even further against yourself in a field in which overall success-rates are so low.

A rather widespread misunderstanding.

It sounds so superficially attractive, doesn’t it, to express the view that practical experience is needed to master a practical technique? Who could possibly argue with that?

The reality is that it’s a sentiment which leads [I]huge[/I] numbers of people astray.

Yes, it’s needed, too - but [B]later[/B].

One of the important and very significant differences between an aspiring trader with 3 years’ good experience and another with 3 months’ poor experience repeated twelve times over is typically that the latter believed what you’ve just said, above, and tried to put it into practice without [B][U]first[/U][/B] having mastered the essentials of the counterintuitive subjects of probability and statistics that all successful traders need to come to terms with not only to become successful but also [I][U]to benefit from their learning experience[/U][/I].

For this reason, what you’re saying above (and elsewhere) is actually misguided.

It is not a myth but actually a reality. But it is due to the fact that most of the traders aimlessly in order to just earn profits. The first and foremost reason that most of the traders don’t succeed is that they lack persistence and patience. Instead of this one should treat trading as a business and trade as dedicately as they do business to earn living. Even after suffering loss keep the spirit to go on.

For those with an interest, I’ve posted some additional research here. That post actually looks at quit rates.

Measuring the number of losers is pretty hard as forex is worldwide business and large number of people are attached with this business from all over the world, most of them are failing due to lack of knowledge, experience and skills and I think 70-80% are loosing and rest of the people are earning reasonable amount.

I think that’s about accurate. Accurate statistic. Because a large portion of traders who lose their money, get disappointed when losing their money and without trying to figure out why leave with nothing.

people need experience and skill not to get loss in FX, go to the library and borrow some books. 99% of anything you read online will be biased towards getting you to buy some forex product or service, such as creating an account on a trading platform.

The easiest and the most effective way for gaining knowledge on Forex is reading many Forex tutorials and trading on demo account. Reading will help you to get the basic knowledge on Forex, and trying on Demo accounts will help you to practice your knowledge. Nowadays there are thousands of tutorials, and many brokers who offer trading on demo accounts.

May be 95% lose because they morons!
Id say most lose because they have no system that is reliable . it takes a long time to develop and think through.

Its about concept and how fast it takes you to come to the conceptual change. The market is a puzzle . it can be adapted to.

Indicators don’t adapt. System need to adapt based on market movement and you have to adjust to that movement.

I don’t believe this statistic, but it’s true maximum retail Forex traders are loser! On the other hand, professional Forex traders who are making huge amount of money here they are silent! Day by day the popularity of Forex business has been increasing very rapidly in all over the world, because of it’s earning possibilities!

90 % is on the low side, unless you are talking about people who sign up for a few days and then leave. It’s well over 99 % in the long run. Most people who claim to win on these forums are lying. Look at the systems they talk about; it’s mainly “technical analysis”, which is just as effective as astrology.

If you complain that it doesn’t work, forum posters will say you just need to study more. Study what? It doesn’t matter how much you study astrology, it doesn’t make the predictions any better. It’s the same with forex.

Yes… From this forum someone did try to sell some systems… I say it lag…back test is forever perfect, I’m not interested in back test… I want now right now the moving price now what going to happen next… He say need to study… Lol… I just show him 1 photo a naked chart… I say if u can tell mi the system will tell mi what going to happen nx the price b up or down which all trader also want to kn I buy it…after tat no more reply