Thank you Lexys :):)
This is the whole point.
It is not just a question of whether the failure rate is 90%, 95% or even higher. The real question we need to ask ourselves is: Is it relevant to me?
The more these high percentages are thrown around the greater the stigma attached to them and the greater the fear that it instils in newcomers.
As FF writes in her excellent post above (somewhere), there are many reasons why traders drop out after a short time. But are these really all so relevant? Do we really need to place such a great emphasis on these percentages?
We could draw a similar conclusion if we consider playing the piano (for example). I am sure that most kids at some stage take music lessons and learn some rudiments of playing keyboards. But we could be dramatic and claim that: [U][B][I]" Did you know that up to 99% of all people starting piano playing fail to become concert pianists! In fact the vast majority donât even reach the stage of playing for their own entertainment!!!".
[/I][/B][/U]But does this mean that piano playing is so complex that hardly anyone is capable of mastering it? I am sure if PMH is nearby he would confirm that playing an instrument demands a lot of practice and theory but that it is certainly within the capabilites of the majority of people to reach a personally satisfactory level if they are genuinely interested and prepared to put in the effort - even if they donât ever become professionals.
Rather than dwelling on the size of the crowds that give up for whatever reasons, it is far more beneficial just to concentrate on oneâs own education and practice and see how trading is suited for oneself - surely that is all that really matters?
I personally feel that most traders like the stigma attached to the high failure rate - regardless of how accurate or true it may be in reality. Being able to succeed in this industry represents success, and how better to measure your success by using the most valuable asset in the wordâŚwealth. At the end of the day success in trading, be it FX or any other asset class, is measured by wealth [profits]. This is not a business where you are manufacturing products, creating a global supply chain, pushing a global brand or growing an asset base. Trading is concerned around money - [I]an asset poor, cash rich approach[/I].
All you have to do is look at all the films that have been made around Wall Street and/or London Stock Exchange. In every possible concept, trading has been glamorised as a cash rich business. A lucrative industry for the highly educated and the risk taking individuals.
In short, I think a more achievable success rate would ruin the dream!
Interesting perspective! You may be right but I canât help thinking that you are looking at this from the other end of the spectrum - i.e. from those that have already reached consistency. OK, maybe they are somewhat entitled to feel some pride in their achievement (although personally I see few successful traders that actually make a big public number out it, in fact quite the opposite)
However, I think here, on BP, we are more concerned with those that are starting out on their âroad to wealthâ and I donât really feel unrealistic deterrents such as â95% of people failâ are all that helpful. Rather, it is important to be realistic about oneâs own capabilities and suitabilities to this business.
I totally agree with you ManxxâŚhowever
Looking at this from a different prospective again [I like to provoke questions :)] - Does the high failure rate which is made public actually not act as a deterrent, but rather attract the right people with the right mindset? Clearly though, having the right mindset does not mean you will be successful, but you have to be at the very least an inquisitive individual to even think you stand a chance (and this is a very strong skill to maintain as a professional trader)
Iâm starting, more and more, with experience and by looking at what people say and who seems to do well and who doesnât, to think that the people who become successful independent/retail traders are probably [I]mostly[/I] people who would have become successful at whatever other self-employed career they tried.
This is very true, what you said separates the wheat from the chaff. I suppose the key underlying factor for success in all business ventures, be it trading or any other is that of determination.
Determination and a clear mindset is, at the end of the day, the common denominator for success.
No problem! That, surely, is the purpose of a forum?
To be honest, I have no idea what motivates most newcomers to forex beyond what I have read from the posts of Newbies here.
But from those posts that I have read, I would conclude that most are drawn by the prospect of being able to earn good money, maybe even a fortune, rather than just to take up a challenge to beat the norm for the industry - but I would certainly agree that a strong, persistent winner instinct is essential in trading!
But there are many posts where people state their reason for starting forex trading is a hope and a dream that it will, for example:
- provide financial indendence
- get me out of a job I hate
- give me freedom to work for myself
- pay for my kidsâ education
- pay off my debt burden
- build up a retirement fund
but maybe there are also some who might say:
- to prove I can beat those 95% losers
I agree with you, and appreciate, that having the right mindset is crucial - and whichever way one interprets the 95% is not so important as whether it is a positive for you or a negative!
Now, I think this is a quote from 'How to sell FX courses that donât work to Joe Bloggs" haha
You are right there! 
The last I heard, Joe Bloggs had dropped out of the forex education market as a prospect, and was buying lottery tickets and looking for an MLM opportunity ⌠
Is it a reflection of the undisputed superiority of the female gender that it is only [I][U]Joe[/U][/I] Bloggs who is always featured in these issues and not his wife???
Mind you, in most of the MLMâs that I have heard of, they are driven mainly by women? - or is that only at the few successful higher/inner levels?
I feel like i want be be inside this circle
Are there any legit links that point to this statistic (90% forex lose money)?
Would like to know the real source, and when it was published. What I found on the internet, was bunch of articles, which quote this statistic, but never found the real source its self.
Also, with the advent of many educational programs (babypips, ff, other paid course) now, is this statistic still applicable?
Curious if we can see the statistic year by year.
First off, In ALL businesses, the success rate is still around 4-5%. Keep that in mind.
Also, again, your either trading for a hobby, or your trading to get wealthy. SO be wealthy, it takes more work then most anticipate. Add, looking at charts, crunching numbers, feeling the rush from trading in general, isnt alot of peoples cup of tea.
Then take the average association to risk, or 1-2%, over each month, because that seems to be the norm, its looks like its a Longgggggggggg draggggggggggggggged out career, that you have a great chance of failing at anyways, and just say the heck with it.
The average deposit in the US is around $6,000, but the industry standard everyone being told is $10,000⌠Most likely the same ones holding their hand out.
Then, you have the gurus that charge, and keep their subs in suspense for years, while milking them a messly$96 ;/ a month, just to show a 3% gain over the month, OR no profit AT ALL!!
" LOL< Today, we showed you how to lose", WTF, Tomorrow, we might lose again, but its not about the wins, its about following our shtty plan to keep you comin for more, because the law of averages says it will work", BLAH LAHBLHA
*shruggs, im in it to get filthy wealthy and be well off for the rest of my life. Failure is not an option, its a stepping stone for tomorrow.
EVERY SINGLE ENDEAVOR, is a staircase you must climb, step by step, or sometimes, 2 steps at once. You cant just levitate to the top floor, YOU_____MUST_____ CLIMB, USING EACH STEP AS A CAREER BUILDER, If that Flight is 90,000 steps, then so be it.
95+% of failed business startups, lose everything too, so dont think the whole forex failure rate is something abnormal, its the way it is with everything in life.
Following on from what Money mentions above about non-forex business.
If you want to open a shop, garage, manufacturing facility, restaurant, etc, you would likely need to run your business plan past your bank in order to borrow the funds needed, so at least an âexpertâ gets to scrutinise your plan for any obvious flaws.
In forex you just stick your hard earned savings into a brokers account and youâre up and running. No checking that you know what youâre doing, that you have a coherent plan.
The barriers of entry are non-existent and, imho, one of the major reasons for the high failure rate.
Speaking non-specifically (if that makes any sense); if all the people who are failing were to do the exact opposite of what they had previously been doing, this would not automatically make them a great success. All the mentoring and study in the world will not necessarily turn an unsuccessful person into a very successful one.
Regarding very successful(and I donât just mean how much money they have made), and often highly intelligent people, in my experience, they possess an indefinable intrinsic quality , something that is not quantifiable or obvious to all and sundry.
They think differently and are perceptive in a way that the majority of people arenât and this is not something that can be âpassed onâ. Iâm not talking about a persons intellect in the sense of their ability to study and complete a course, learn a language or even to learn to trade . Iâm referring to a certain level of success which is borne from a more abstract quality.
Insight, intuition, vision âŚthese arenât things that can be measured by an IQ test.
âŚIâm sorry for going off topic a littleâŚI do tend to ramble on a bitâŚ
If you read biographies of successful people, or even articles about them in serious publications (I.e. NOT the tabloids), a great many of them openly admit that they had many failures before becoming successful, indeed they still have failure but minimise the effect these have on their fortunes.
In forex a lot of new traders are investing every penny they have (ive even read here on BP of traders using their credit cards or family loans) and subsequently, when they lose, they cannot afford to return and try again.
I think not good idea if investing money using loan because will making problem if facing margin call account, beside not gain anything but also still having compulsory to paying back these loan, now some broker offer cent account and for learning beginner this type account less risky
Brokers, service providers, and a small proportion of traders.
(The 95% figure is an âallegationâ, not a âproven factâ and actually not even a âprovable factâ because thereâs no centralised market and therefore no collatable evidence. My own guess is that itâs probably right, or nearly right).
Forex trading (currency trading) originally developed out of the need for businesses and people in countries with different currencies to trade.
This article will interest you: [B]History Of The Forex - Forex Walkthrough | Investopedia[/B]