80% of forex traders lose money. Is this correct? If yes, what could be the reason?

Hi, what is going on here? Is it still actual?

Greed, lack of patience, lack of understanding of the market and how it works, wrong teachings.

I’m sure there’s more but these are off the top of my head

Unfortunately, yes, it’s like that. And it’s definitely a 100% truth, I presume, the overall percentage of those who lose money is even a bit higher.
Nevertheless, as you have underlined, forex trading indeed opens the doors to the world of big finances, but the approach matters. Those narrow-minded who start trading with a single though to make a penny - aren’t successful. They have to strive for development, they must have a genuine interest in the sphere and comply with all basic rules. Then they’ll have a chance not to be included into statistics…

The biggest reason why people fail is they have been sold lies about using indicators or candlesticks or drawing crazy toddler style art on their charts and expect to make money. The truth is real money makes the market move. Not all the rubbish lots of people trust.
Even with the best risk management if you don’t have a consistent winning trading strategy you will lose.

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This question or a variant pops up 2-5 times a year and we get similar post to those above - Sorry Lads and Lasses - as long as you cannot progress beyond this Kindergarten level of thinking, you are destined to join them

THe facts are thet the percentage is way higher than 80% for reasons I have explained in many previous posts on the subject, (97%+) and the reasons are simply that yous are all taking on board the “Education” “they” want you to believe in ! - Happy new year folks :slightly_smiling_face:

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The 80% etc includes the punters - guys that have read that it’s possible to win big time - they gamble some and lose, in the UK it’s a little like the Grand National (horse racing) - pro gamblers stay out.

Retail brokers have evolved to accommodate this market - when 1st Wyckoff proposed that potential market participants needed to be educated he was laughed at - why would they want to do so?

He was so exasperated that he turned his attention to this very subject - education.

Now retail brokers have turned this around - it’s included, promoted - all for free.

Richard Wyckoff - CMT Association

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Having a consistent winning trading strategy is also a very arduous thing.

I mean, imagine how many time you are bound to devote to testing this strategy before attaining good results in the market with it.
I also have such an experience, nothing in trading can work out in the blink of an eye.
Risk management is a must, even if you have a winning strategy. Nobody knows what will happen tomorrow, your successful strategy can turn into a trash right away.

Most losing traders do not have a consistently profitable strategy.

But I agree, having a consistently profitable strategy is still no guarantee. My theory is that a consistently profitable strategy is always going to be consistently profitable but not in every market and not all the time. So maybe we need to run the strategy in our live account on our favourite pair or market and but also simultaneously run it in the background in a demo account on a bunch of other markets.

This will tell you which market to switch to or switch back to when your primary live account starts to under-perform. Maybe some people are already doing this. But what a hassle…

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I agree. And the trader can ruin a perfectly good strategy. If you give me a trend following strategy, and I start using it at a loss during consolidation periods, did the strategy stop working?

Or, if you give me a scalping strategy, and after making money for three months, suddenly the strategy stops working, did the strategy fail, or did I start getting arrogant and reckless?

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All very possible scenarios and all the more likely if we’re talking aobut a new trader.

Trading isn’t dangerous. But traders are.

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i think that is correct we can win trades but overall it is negative for about 4 out of 5
and the easy reason for sure is trying to make easy money

More like: 80% of the time retail traders use a stop loss distance that’s closer than a take profit distance. Put the goal closer than the invalidation. Win more. Lose less.

I can’t answer “correct”, because it is very difficult to see the data as a whole. I just answered “relatively” in terms of numbers. However, this is something that is a concern for traders, especially newbies, to pay attention to everything that must be prepared before entering forex trading. Study and practice in demo accounts, and also psychology must be improved. Thus, we will achieve success in trading.

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It’s hard to tell how wrong this theory is. But the fact that many people lose money on Forex is true. Traders often lack sufficient necessary knowledge

Not 80%, but 90% of people lose in everything except for jobs and daily labor.

90% of people fail to set up profitable businesses.
90% of people fail to become celebrities (in the film industry).
90% of people fail to become successful sportspeople.
90% of people fail to become politicians.
90% of people fail to become government heads (presidents, prime ministers, chief justices, etc.).
90% of people fail in becoming successful traders, whether in the forex market or stock market.

In reality, 90% of people fail to become successful and live the life they want. It’s never just about trading alone.

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Forex is hard work. We need to learn a lot to succeed in trading. I don’t know why anyone thinks it’s easy

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