90% of traders lose money? - Page 10
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  1. #91
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    Manxx is offline Superior Master Contributor and Member
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    It is interesting to note that this issue has now been under debate for over 10 years in this thread - and it seems the basic sentiment on how many fail to make the grade, or give up for some other reason, has not significantly changed during this time, i.e. the vast majority of people entering the field of retail forex trading fail.

    In spite of the vast increase in availabiity of training materials, access to information, and improvements in trading platforms and broker services, the vast majority still cannot make it work................surely in most other fields of human endeavour this would be a staggering situation!

    I guess the core question to consider is whether this is because the forex markets are simply far too complex for the average human being to cope with or is it because the entry threshold is so low that too many start without the necessary knowledge and experience to succeed immediately - and with insufficient capital to finance learning the hard way through their own mistakes.

    The true Newbie with no previous experience of these markets is truly vulnerable and to a large extent working on their own when taking on the markets - especially when it is not even easy to find genuine, thorough, reliable and comprehensive training material.

    Therefore it is hardly surprising that a very large proportion of newcomers, who are lured by the promises of wealth and freedom in the adverts, fail very quickly. This means that the failure rate statistics are inevitably abnormally high in this industry and are not necessarily a true reflection of the actual degree of difficulty in trading consistently.

  2. #92
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    Quote Originally Posted by Manxx View Post
    I guess the core question to consider is whether this is because the forex markets are simply far too complex for the average human being to cope with or is it because the entry threshold is so low that too many start without the necessary knowledge and experience to succeed immediately - and with insufficient capital to finance learning the hard way through their own mistakes.

    My own impression, for what it's worth (if anything): I don't think it's because the forex markets are too complex for the average person to cope with; I think it's because there are almost no entry barriers (and in these days of increasing high-speed internet availability, worldwide, that's even more true than ever); and I think that hand-in-hand with that it's even easier for "forex-marketers/vendors" to target their ever-increasing promotional materials at those least suited to forex-trading. The survival of the marketers'/vendors'/"brokers'" businesses depends on their being able to do this, and they do it very well.


    Quote Originally Posted by Manxx View Post
    This means that the failure rate statistics are inevitably abnormally high in this industry and are not necessarily a true reflection of the actual degree of difficulty in trading consistently.

    I agree.

    It ought to be mentioned, though, that there's also (probably) a statistical and societal reality at play, here, in that if broadly and loosely speaking (let's say, for argument's/illustration's sake) 95% "fail" and 5% "succeed" (no definitions offered!), the proportion-skew is such that if the number of participants "succeeding" either doubled or halved, that wouldn't be discernible, anyway. The further away from 50/50 the "success"/"failure" proportions are (and whoever's figures you believe - and we can agree that they're nowhere near 50/50? - the more true that is).

  3. #93
    Could it be possible that a large portion of the percentage that fail are simply made up of younger adults with a hyped up gamblers mentality. They have a bit of spare time on their hands and a few hundred dollars in their pockets , seeking instant profits and not treating trading as a serious long term endeavour, with an attitude of arrogance and entitlement, very little work ethic, insufficient common sense - and very possibly intelligence . To even include them and label them as "traders" is absurd. They probably should not be in charge of a savings account let alone a trading account.
    There is also an enormous body of people who are trading from desperation, trying to trade their way out of hopelessness and better their lives. Whilst this is admirable they are often doing it with the last dregs of their savings, with neither the financial capacity nor emotional stability - due to their predicament - to withstand such an undertaking. Most definitely a road to ruin.
    If this colossal percentage of people is removed from the equation then what you would be left with would be a more realistic demographic from which the percentage of " real trading failure" could then possibly be ascertained.
    People ultimately are responsible for themselves and their own decisions. The Internet is full of lies, nonsense and rip off merchants... and not just in regards to trading. People aren't forced to do or believe anything and unfortunately you can't always save people from themselves. People get themselves into all kinds of financial strife in life...mortgages they can't afford to pay, credit card debt, wasting money on a million things they don't want or need and so much more. Poor decisions and losing money are not just limited to the world of trading.
    We all make decisions in our lives which can improve our situations or make them worse. Often the wrong decision will make us stronger and better in the long run.
    The people that don't "make it" in trading perhaps aren't supposed to? We all probably couldn't "make it" in many areas...we are just not suited .
    People pay good money to "try" to do many things in life and either give up, fail, or realise that they didn't really want to do them after all.
    I have accepted the ten million things I will never be able to do. And the things I have failed at. I wonder if I"m part of a percentage?

  4. #94
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    ^^^ One of the best and most realistic posts I've ever had the pleasure of reading, in this forum.

  5. #95
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    Most people stop at failure.

  6. #96
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    Quote Originally Posted by MoneyNVRSleeps View Post
    Most people stop at failure.
    I think that's the general idea?

  7. #97
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    Quote Originally Posted by Jezzode View Post
    I think that's the general idea?
    Hey Jezz, can you elaborate on that?

    Not being a smartas$, im diggin in your mind.

    Why is it a question?

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    Quote Originally Posted by MoneyNVRSleeps View Post
    Hey Jezz, can you elaborate on that?

    Not being a smartas$, im diggin in your mind.

    Why is it a question?
    Oh just a play on words.

    However, I would assume when one decides they have personally failed [in the context of not achieving their own goals] they should stop and move on.

    There is of course a difference between failing at an endeavour; and failing to achieve personal objectives. The latter, in my view, is true failure.

  9. #99
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    Quote Originally Posted by Fundamentally Flawed View Post
    Could it be possible that a large portion of the percentage that fail are simply made up of younger adults with a hyped up gamblers mentality.
    This could very well be true in forex. I have heard from reliable sources, though, that among active traders in the stock market is a high percentage of retirees. From what I've read in the research, stock day traders have pretty comparable success/failure rates as retail forex. That suggests it's not an age thing. The gambler thing could apply to both - along with the desperation, and other factors.

  10. #100
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    Quote Originally Posted by rhodytrader View Post
    This could very well be true in forex. I have heard from reliable sources, though, that among active traders in the stock market is a high percentage of retirees. From what I've read in the research, stock day traders have pretty comparable success/failure rates as retail forex. That suggests it's not an age thing. The gambler thing could apply to both - along with the desperation, and other factors.


    Interesting - I have posted here and elsewhere for some time now that newbies refraining from daytrading would significantly improve their chances of surviving long enough to become successful.

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