While I think that statistic might be exaggerating a little, I think the general message is true.
Many traders tend to overtrade, don't practice good money management, and don't take the time to actually learn the market and practice what they learn and apply it to their trading.
Trading isn't something you learn after reading 1 or even 100 books and websites. It is about continuously learning and having the willingness to persevere even when times get rough.
Most people can't get through this. Trading profitably is not impossible, but at same time it isn't easy either. Don't let that statistic scare you but you must also be prepared to work at becoming a very good trader. If this is something you can really think you can do, then you will make money in the long run.
I'm still on that journey and I am determined to better myself as a trader each and every day. Good luck on your journey!
Uninformed traders lose their money. The stats that I read stated that almost all new traders will lose their money in the frist 3 months. This is not something to undertake on a whim, unless you want to go broke. You need to study carefully and become well informed before attempting to make an investment. There is a website that will let you practice trading before investing your own money. I think it is good to try your hand at it, after learning the ins and outs of the Forex.http://www.fxcm.com/open-free-100k.jsp
John Forman did a good job by researching this in depth. Only I'm wondering why it would be a great help to you knowing the exact number of percentage or get a confirmation about. Beyond question there are a lot of traders having a red account. But if you are on the path for getting a successful trader, you 'only' have to avoid the mistakes of the unsuccessful ones. Yes - I know, easy to say.
I don't know any statistics about the kind of mistakes, most traders are doing. Maybe John knows some more about this. I'm convinced, most are running into very few traps, as over-trading, using too much leverage, revenge-trading, averaging (adding to) losing positions and others.
Avoiding this, read and learn as much as possible, start trading on a demo account, or - if you need to trade with real money, because this is another thing than demo, use a micro account. If you have no holy grail, look for a strategy in forums, there are a lot, which are really working, take it, possibly adapt it a bit to your personal needs and go ahead 2-3 months. Do this without jumping to the next system, only because you have 2 or 3 days with losses. Profitable at the end of test period? - Satisfied not only with results, but your work with the market (not against it)? - Next step to real money, or if already started, increase your positions (small) step by step.