I not think that 95% traders are looser. I hope this % will be less. Here most of the traders loose but they learn trading slowly and become a good trader. If so much loss is occurred why people are joining forex.
Basically, institutional Forex traders are silent, so you canāt count them! But itās true, a number of retail Forex traders are losers, and the percentage is more than 90%! For the reason that, maximum retail Forex traders start their trading journey with a wrong path, they want quick success! By the way, if you are a novice trader then please donāt be scared about this statistic, just focus on your learning process and practice!
To be honest, itās not just Retail FX trading that has such a low long term success rate. Itās common in most start up industries as shown in the below Forbes article.
ā90% of Startups Fail - What you Need to Know about the Remaining 10%ā
[I][U]How many startups fail?[/U]
Nine out of ten startups will fail. This is a hard and bleak truth, but one that youād do well to meditate on. Entrepreneurs may even want to write their failure post-mortem before they launch their business.
Why? Because very optimistic entrepreneur needs a dose of reality now and then. Cold statistics like these are not intended to discourage entrepreneurs, but to encourage them to work smarter and harder.[/I]
1 Like
Nine out of ten startups will fail, and after 5 years those that survive will fail again 9 out of 10. People that have gone through college and got their MBAs has said they have learned more by starting up their own business than college.
Wellā¦ Theory has nothing to do with practice and practice is the actual teacher, I believe. Regarding the statistics, I think Iāve read somewhere that this percentage has changed in a positive way
Great post WTTJ,
if you survived two decades as a business owner, this trading business will not be scarier, I imagineā¦
I do think that the stats from Rhodyās 5000-traders sample do speak volumes in terms of.how many people are lured to.financial.markets.without sufficient preparation:
To add some more āproven findingsā to this thread I want to copy something which I came across.
[B]2.16[/B] [I]We also conducted analysis of a sample of client accounts from eight major providers as part
of the thematic review on client on-boarding in 2015. We found that more than 80% of client
accounts made a loss over a year, with less than 20% of client accounts in profit. Across all eight firms, the average result per client account was a loss of Ā£2,200. Although there were
small differences in the average level of client losses by firm, the proportion of profitable to
loss-making clients was very similar. When combined with the fact that clients may invest in
these products based on firmsā unclear disclosures and inadequate risk warnings and with
inadequate testing of knowledge and experience, there is a strong likelihood that some clients
should not have entered into these products at all[/I]
Source: https://www.fca.org.uk/publication/consultation/cp16-40.pdf
Fascinating thread!
I guess it would make sense to compile a list of the top 10 mistakes Fx traders commit! Newbies like me would be super grateful for that 
You should have to get some knowledge about the market before entering to the market. Many of the beginners donāt do so because of which they suffer from loss. When loss occurs they lose hope and instead of recovering that loss they left the market. This is the main reason behind their failure.
right! lot of folks start trading forex without proper knowledge & skills. consequently they end up losing their capital as well hope and most of them quit trading very soon.
WHatever the reason for āthemā losing, what you say is essentially correct. Then of course the losing traders do not appear in the figures for the next Time period , whereas the āwinnersā still do appear. This distorts the figures away from the truth and towards what the industry would prefer you to believe.
Many traders fails because they donāt have some skills about what to do in the forex market. Skills and techniques are the compulsory things for the forex trading. These things helps you to earn a huge profit and also to save yourself from a huge loss. These are the main reasons behind their failure.
I really agree with you; a number of traders try to make huge money without proper learning; so end of the day itās a huge amount in total.
These are very interesting stats. These stats are a real rude-awakeing for the newbie and young traders that think that forex is an easy way to become rich. You donāt want to be part of that list who have lost their entire life savings in it. Please, trade lightly for your own sake.
āAfter this post, Im not posting again, till I hit $1Mā
Dude just disappeared into the shadow realm after this post. RIP Money.
One wrong stupid move and you are done in Forex. I mean, this is money we are talking about. The guy probably got burned. About the losers stat, I think itās a myth anyway. No body knows for sure how many traders are out there, who is losing and who is winning.
I can assure you itās not a myth, itās now part of the regulation that all retail brokers in Europe state the aggregated number of accounts which lose money over time - I think all european accounts is a rather decent sample size?
Though forex has become a reliable trading stage, many traders canāt make sure good profit due to many reasons. Lack of trading knowledge, wrong choice of brokers, inappropriate money management, etc. are various underlying reasons behind the failures of forex traders.
hi
how do you generate money and can we succeed on the forex?
I think itās not easy practically
1 Like
I can not say how many but yes there are many people who have lost their money here because of wrong trading.