jgray110: A trader from FF says a Phd found that 99.6% of forex traders lose long-term, that is telling the new trader, every trader, to pay attention to feelings, any doubt, conflict, fear, or greed is settled by money risk management, manage the risk not the reward, manage the reward by managing the risk, truth-test, how much can a trader afford to lose considering all assets, including liabilities and dependents, and bearing in mind the above statistic, it can easily all be lost.
mrchilled: The only statistic that a forex trader needs to worry about is % return on their trading as every other statistic (especially the one of % who lose) is unproven and made up.
Mr. Chilled, Your'e damn right, Worry is an emotion that is also settled by risk management for us outsiders, positive % return for most of us outsiders is very difficult because we have more obstacles than you guys, we have retail not wholesale. I am not saying don't trade, I am saying 1. manage the risk not the reward, 2. manage the reward by managing the risk, 3. Loop: repeat 1 and 2.
This is from the standard live compliance form (Broker name provided on your request), WHEN YOU SELL, THE DEALER IS THE BUYER. WHEN YOU BUY, THE DEALER IS THE SELLER. As a result, when you lose money trading, your dealer is making money on such trades, in addition to any fees, commissions, or spreads the dealer may charge. And from the same form:
QUARTERLY RETAIL FOREX CUSTOMER ACCOUNT DISCLOSURE
Quarter Total Non-Discretionary Accounts % of Profitable Accounts % of Non-Profitable Accounts
4th Quarter-2009 35828 34.69% 65.31%
1st Quarter-2010 34947 28.62% 71.38%
2nd Quarter-2010 9053 31.24% 68.76%
3rd Quarter-2010 8544 30.96% 69.04%
This is from the compliance form the broker had me sign. This is fact. 65 to 70% of traders lose. By my definition, traders who lose are outsiders. We can't afford to fold our arms behind our back like you. Most of the people I work with are not even trading. They are struggling to make a living for their families.