Let s be more specific, 100% of traders lose money. Hence the term “Maximum Drawdown”. Just like prices on charts move in zigzags, so does portfolio performance in most time frames.
But if you mean “wiped out” then yes, some survive the storm in the longer term, others don’t. I have no idea what % is a winner or a loser at any given time and how this % changes over time. All i know is it is more important to compare “your” performance today with yesterday’s and attempt to fine tune that tomorrow. Like anything else, it is about self improvement. Statistics are what they are, Not always accurate and not fixed for eternity. I read an article like that when i first started. I think the only pro about such statistics/articles is that it enforces newbies to think about risk before thinking about profits.
A good start for survival!!
It is not the point of 90 or 95% but the main thing is that majority of forex trades are on losing side and only few are making good money in trading. The majority of losers in forex are new traders and those who think forex is a get rich quick scheme.
May be more or less than 90%, but the truth should be similar that only few trader could make profits in the long term, and most will lost, it’s common rules in business field, what we do is try to become the top traders.
90,95% traders loosing money…Why are you here then if you honestly believe that?Would you bet months of your life and lets say 20k of your money on 95% loosing bet.In that case you have a higher chance of placing a 1 trade, all in go short or long at least that’s 50/50 right.I don’t think so.
Take a kid as an example who starts playing soccer what are the chances him becoming a pro?Same.Why?Not because he doesn’t have the talent to be at least mediocre 3rd league player in the uk with an average Joe’s income.It is because he gives up,get’s bores,older and finds different interests.If he gave it all,lot of training daily,atc. and sacrificed a lot along the way he would even without any talent.
Also to mention a lot of people opens a 200 or so account just to give it a go.Lets buy low and sell high right mentality without proper research,training and knowledge.Its not that hard they might reckon.Only to find themselves loosing it all and continuing with their daily jobs without ever looking back without realising that their logic was sound it was their emotions and psyche that failed them
I worked for one of the UK spread betting companies and that figure felt correct. I think part of the problem is the aggressive sales techniques employed on clients with no experience. Novice traders can open and fund accounts with little or no knowledge of forex. I think that 90% figure could be improved upon if there was a bit more discretion about who opened accounts.
There is not much horror in forex trading. I was also frightened before starting it. After much practice forex become easy for me . I loose in it but gradually I made profit in it . Forex may be difficult for many people but it is not reality that more than 90% are fail in forex market.
I don’t think so. It’s right that there are lower percentage of people who can be successful in trading than people who are failed in here but there is no real data that there are 95% of losing traders and 5% of people who can trade and earn in forex. But out of that, there are only few traders who won in the business not automatically making you failure too. It’s depending on your own skill of trading and your money management.
As some folks here are aware, I’m doing a PhD at the moment. My broad focus is on trader performance, seen mainly from a Behavioral Finance perspective, though necessarily it will only be some fairly narrow aspects in terms of my dissertation. Along the way, though, I’ll have some opportunities to go down a few paths of my own choosing. Since the whole question of whether 95% of traders actually fail is such a hot button topic, I figured I would take that on and share what I find. I’ve posted results from some initial work on my blog in the post Starting to detail forex profitability data. It’s just a beginning at this stage (as the title suggests), but hopefully I’ll be able to expand on it to provide some interesting insights. There’s a lot of data and a lot of ways to slice and dice it. Give it a look and let me know what you think. Constructive criticism is both welcome and encouraged.
It is a fact that the percentage of losing traders is very high. The main reason for this is that as trading is a business where there is not boundaries to limit your decisions so traders take emotional trades and lose money heavily.
Whatever the statistic is but I believe maximum retail Forex traders are loser! Because, most of the retail Forex traders influence by watching huge profits possibility here! In addition, they also try to make healthy profits without proper training! But which intelligence new traders don’t follow this common trend, end of the day they become successful Forex trader!
It is true that a whole lot of traders lose money while trading. The reason is simple, they don’t follow the rule. What is the rule? Cutting losses. That is the element for good trading. Some may think that it is intelligence but it is not. If it were, I tell you today, a whole lot of traders would be making money trading not losing. So my advice to you & other traders here is to focus on protecting what you have. Do not have your focus on making money.
Traders with no knowledge can loose money in Forex market easily. There is no perfect ratio of loosing in market, because the traders who are earning will never show their earning to others.
I don’t measure that 90% are failing in this business, although mostly are getting loss but only 60-70% are failing but rest of the people are earning huge amount from this business, I found forex lucrative and life changing opportunity.
Sorry - no hostility intended but this really is total nonsense - it’s just [I]completely wrong[/I]. There are many published figures that show it’s unmistakably nonsense.