About the "95%" failure statistics

Just curious, who did the statistics and came out with the results that 95% of the traders lose money. I’ve heard people saying it’s actually 80% or it was just a “myth”. The 95% percentage was also commonly tied about traders “lose and quit” or “losing money at all times”. Anyone can clarified?

You hear this statistic bandied about quite a bit but it seems to me that there is no way of really undertanding what it really means. Furthermore where did it come from? As one who has studied statistics, that number is meaningless to me. We would need to knw what “they” were measuring and with what instrument. Kind of like Obama’s mythical “saved” jobs.

I copied this pie-chart from FXMoneyMap.net a couple of years ago.

I have no idea where they got these percentages, and I don’t know whether they are accurate.

For what it’s worth, this pie-chart says that 5% are winners, 5% break even, 36% quit (and are not counted as losers),
and 54% are losers.

After numbers like these are kicked around for awhile, they tend to achieve “urban legend” status — especially when they are presented in a fancy graphic. Take them with the proverbial grain of salt.

I just was looking glancing thru the pages of The Millionaire Traders and that word came up that you used a few times PERSISTense.Learning process can take years, yet most people give up in months?

[QUOTE=Clint;157131]I copied this pie-chart from FXMoneyMap.net a couple of years ago.


I just tried going to fxmoneymap.net just to have a look around. The firewall at work blocked the site… reason? Pornography LOL does that mean someone is making obscene amounts of money ? :smiley:

I think the vast majority of new traders either over trade, over leverage or trade to short a TF chart.

Overtrading is an account killer, over leverage will do the same.

Trading to short a timeframe subjects you to whipsaw and not overall PA direction. Pro traders go with a minimum 1h TF, usually 4h and up.

Therein lies the difference. :wink:

hey Robert. Since you mentioned Pro Traders. I’ve heard you say that it takes them 2 years to get good. I was wondering, what training do you require them to have before hiring your floor traders and what training do they get once they are hired? In other words. how good are they required to be before you even hire them ? And what kind of background are they required to have?

LOL… timely question. Here in the UK, RBS (Royal Bank of Scotland) has capped bonus payouts because now 70% owned by government. So theres been a mass exodus of the best traders and wholesale ‘head hunting’ by the other big players who WILL be paying up as usual. :smiley:

In the old days most traders came from the pits. These days I’d say 50/50 cross over CFD traders and ‘Ivy league’ types. Most espiring newbs come over the college summer break and try and make an impression.

Obviously most experienced traders are self starters. Newbs get the full battery of ‘how to FX’ :smiley: They are kept on a tight rein until proficient.

Its not unknown for the odd retail trader to sneak in. Build an account steadily and consistantly over at least a year (three is better) and youll get through the door at most brokers and banks. Always looking for new talent. :wink:

Lets face it…we are all addicted to forex. It doesnt matter if
it is 80 or 99%.

I would still tried my very best to make the best trade.

If you are, “addicted,” and doing it for the thrill, then you are gambler not a trader.

Successful traders trade for profit and profit only. Not for a thrill or because it’s fun. If it happens to be fun that is a pleasant bonus.

Over trade is true.

Over leverage is sometimes true. More often it is a case of not using the


Time frame of chart is irrelevant because it makes no difference because the price does not change based on the time frame of the chart you happen to be watching. I plot the weekly open price and switch between 5 minute, 1 hour and daily charts. When price reaches the weekly open line on one chart, it reaches that line on all charts.

Last but not least, new traders repeatedly break the rules.

Words fail me (almost) :smiley:

So you follow weekly then change to 5 min, 1h and daily? So in fact despite everything being an ILLUSION … apparently the weekly chart is the key. Should have picked up on that with your first ever post … sanctimonoius horse ****!

Seriously just take 5 to re read that crap!

everything is an illusion, even his last post :slight_smile: