Thank you for this amazing explanation. First time I am reading something on this topic that points out the real problem. Most traders come here with the hope of becoming rich by overnight. They are unwilling to study. Babypips has amazing educational resources but very few traders complete the course. All are chasing for ready-made strategy.
It’s a rhetorical question. Because not everyone can win. Those become winners who are the smartest, the most capable and the luckiest.
I don’t think it is a rhetorical question. BUT the statistic is not the true one. When I started the figure was 95%, which is more realistic - And the 90% figure is a part of the new statistic which is 90% of retail traders lose 90% of their account within 90 days ! (The other 10% are simply “Dormant accounts”)
without recommending him for anything else - watch on u-tub “Ant0n kreil annihilates” to understand WHY ! - then watch the 3 BBC - 1 hour programmes he was involved in, which will pop up a little further down the list !
[Edit - and the answer is - as the OP stated - the “losers” are “Obeying the narrative” - STop being sheep ! - learn to think - the d4mn prices just go “Up and down” - That’s your starting point ! ]
Neither do i
and it was the same when i started as well,
although i also believe that the figure PROBABLY is not exactly 95% (i think this is just a guess) i think it would be closer to 97.825 % or something like that
i think 95 is just a figure someone pulled off the top of their head to describe a huge amount
and later it turned to 90 because it sounded cool and it resonated nicely with the 90-90-90 thing
OK, thanks for the recommendations
I think so too, have always suspected the statistic is not accurate.
TO SAY THIS as a blanket statement is illogical.
it’s only logical to hold something forever ASSUMING YOU KNOW FOR CERTAIN THAT THE INSTRUMENT CERTAINLY MAKES MONEY OVER TIME.
Currency does not always work like that
Stocks however are a different animal as are indexes
so… it depends what your trading
there’s your example
Warren is no fool and i’m sure that he doesn’t mean hold something forever regardless of the instrument
Indeed you have said the correct thing. I think each fruitful trader has his own particular manner of profiting. It’s interesting. Issue emerges when we attempt to duplicate others. Or on the other hand endeavor to force my methodology on others. Trading is a mental diversion. Everybody has his own particular kind of comprehension and considering. That is the reason 90% traders are failure.
There many reasons the most traders lose their money in long term. In my opinion, the most important reason is the new traders want to have unrealistic performance (e.i. 50% per month) in order they are interested in trading. That´s why they risk sometimes much more then they should. They often start with some good money management, but eventually they become less disciplined, especially when they lose some money.
Thank you for your post. Yes 90% traders fail in trading. Most people become unrealistic when come into trading. In any other business with 10$k, people’s profit expectation is realistic. But when it comes to forex their expectation soars 10 times or more. That too with being skilled. Most traders even don’t know what they are doing.
I agree… Very well written…
You say right in any other business people expect less as they invest thousands and expect less But in forex Just $10 investment will be expected double in one trade they plan for compounding and dream they will grow their account in thousands in one or two months. This unrealistic thinking is a cause of loss because they do not know how to trade in market.
The other thing is that forex is something intangible. After the first loss, it may seem to some traders that all of it is lies and they stop trading. But they don’t think about why they lost their money.
The 90% statistic needs a timeframe to have any meaning. 90% of traders lose a trade? Yes. 90% of traders lose everything on their first day? No.
It’s probably more accurate to say 90% of new traders lose and give up within a year. Who knows for sure? The brokers.
Hello, it may be obvious to everyone but me, however, I must ask,
What is meant by buy into weakness and sell into strength ?
How can we tell there is weakness? Or strength? By the size of candlesticks?
Please clarify this for me, I will appreciate your help very much. Thank you, sir Pipslord
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@JJFlack
it’s a fancy way of saying BUY LOW… SELL HIGH
LOW is Weakness / Depreciation
HIGH is Strength / Appreciation
END OF LESSON
does that make sense ?
Actually here is an extended lesson
Look at this EURAUD M30
now… a Newbie would say SELL SELL SELL
No Mate…
this is Weakness… the market is FALLING, the price is dropping / Depreciating if you will
so why would you now SELL
because the trend is your friend and all that … right ? hehe
well, look at this
1 Minute chart, same instrument
it’s now started to range
if you sell this , YOU MISSED THE BOAT MATE
it’s now going to look to go up again
hence the move is… BUY LOW / BUY INTO WEAKNESS even though your Newbie Gut tells you to sell
Look here’s a practical example, i just addressed this post a little while ago
he’s wondering WHY it’s about to hit his stop loss
well OBVIOUSLY he was selling into weakness
SELLING LOW is a silly idea
you see this is how it happens
HIS POINT OF VIEW IS…
it’s going down and now there is a pull back and it’ll go down again
My MORE EXPERIENCED POINT OF VIEW IS
it went down,
it’s now ranging and it will very likely come back up again at least to the top of that high candle in the range
so LOGICALLY…
you BUY somewhere at the bottom of the range, you put a stop loss a bit lower (in case you are wrong)
and you take profit at mid way in the range to around a quarter way to the top
so… BUYING INTO WEAKNESS
but he doesn’t see it that way
AND SELLING INTO STRENGTH IS THE OPPOSITE
is that clearer now
here is the entire post
in fairness to @dudupips he got wasted last night, so it must be all the alcohol 
i think he meant to really hit the BUY button , but he accidentally hit the sell button hehe
In my view the whole thing is in risks. Many traders don’t pay proper attention to risk-management and as a result lose their funds quickly.
Yes, unfortunately, this is the percentage. All this is due to the fact that everyone in the market cannot make big money, and also because people don’t want to learn.
Yes, you’re definitely right. Prevalent count of newbie traders don’t want to learn and analyse market. They just hope for luck and as a result is lost money
One of the many, many reasons 90% of traders lose in the forex market, WHY?
Check back through your charts and you will see this pattern … over and over again…
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