Hi. Why 98% of traders loose money?

I’m not a mathematician but I would guess, all things being equal, due to the law of large numbers it would be about the same.

No I can see that.

Look at it this way - 1/3 rd are making money in a 3 month period. 2/3rd are losing.

So what do the 2/3rds do ?

The 1/3rd will stay in the game.

The generally accepted rule is 90% lose 90 % of their account within 90 days - wich just nicely fits with the “3 month stats” the brkers present.

THe 2/3rds are paying ALL the profits of the 1/3rd, + the wages of the broker’s staff, the profits for theowners, the interest on the loans from the “Liqidity Prviders”, the costs of "Complianace, Taxes, Advertising, etc etc - ie they are getting severely abused !

SO of course they will disappear. THey will NOT appear in next Quarter’s figures - because their accounts are BUSTED !

Another and different set of “2/3rd ers” will appear in next Quarters figures - but the same 1/3rd will still be the "Profitable ones ! "

so lets take 1000 punters - 330 are profitable and 670 go bust in the first 3 months, 670 in the second 3 months, 670 in the 3rd 3 months and 670 in the 4th 3 months. -

So 2680 go bust in a year and 330 are profitable - that’s 13400 losers - in 5 years and still 330 are profitable (THEY’RE NOT GOING ANYWHERE !)

Now what do the statistics look like ? :slight_smile:

That’s why the Industry quotes such short term figures !

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I can’t take anyone serious who actually believes 90% of people lose 90% in 90 days. Not to mention you’re example is so wrong and backwards I wouldn’t know where to begin untangling in. So good luck to you.

Exactly so ! :slight_smile: there is no doubt that my assessment is way closer than yours - but hey there we go = goodnight ! :relaxed:

Don’t forget all the unregulated and offshore brokers whose clients won’t appear in any figures, and where 100% lose

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This is very, very far from the reality.

This thread may interest you:-

I’ll guess upon studying Mr krugmans threads is he is here to sell the dream not live the reality.

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It’s also nice when a little luck is on you’re side.

I’ll be blunt, in my opinion I can easily see why c.90% of retail accounts don’t last the ride. Speculating in FX is not easy, and saying that all you need to succeed is patience, a strategy and occurrences doesn’t even scratch the surface.

It’s rather easy to make profits in the short term, but to last the long term is almost impossible.

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Aww, you took time to study my old threads. That really hits me in the feels. :slight_smile:

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Sure, i can conceed that leverage and overrisking are also big components to why traders lose, but i would place that in the strategy bucket. I know there are lots of other reasons as well, heck i have written hundreds of posts here on babypips talking about all of those reasons, but for the sake of brevity i wrap them up in some high level ideas.

a Reality check needed. Quantity does not equal quality.

This says quality.

Consider it done!

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Perhaps following videos may help to identify the reasons why most traders’ loose moeny.

Following article would add further insight on the topic.

“Trust me i’m a 30 year old veteran” - any person who rambles on about a ‘Cycle of Doom’ is just a Muppet.

I don’t know what kind of insight you’re after by following these articles and watching these videos, but it most certainly isn’t helpful.

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Oh comon, it wasnt that bad. Yeah he used some corny wording but he was actually correct in what he was saying.

Your trading discipline means nothing if you won’t learn volatility and how to adapt to its changes. As you are using leverage, volatility is a principal component of knowledge you have to incorporate in your studies.

Personally I find Anton Kreil (Video 1) quite refreshing ! :slight_smile: - -

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It is glad to hear that you are a 30 years old veteran. But, unfortunately, I am not :disappointed:

It looks to me that you only watched the video of "Cycle of Doom" and didn’t bother to watch the video of Anton Kreil and nor read the Article of DailyFx.com. Otherwise, you won’t say what you have mentioned in your post.

We all know that most of the Novice traders tried to use one strategy after another unless and untill they blow up their account and gave up. There are so many Threads on this Forum in which OPs disclosed the reasons of their failure and most of them are those which have been discussed in the video of "Forex Cycle of Doom.

In the interview with Anton Kreil, he pin pointed various reasons why Retail traders loose their money. He also compared them with the Institutional Traders and suggested various methods to become a professional and successful traders.

And the dailyfx.com article is purely research based in which various DATA source were used.

Here is an extract from the said article:

"Why do major currency moves bring increased trader losses? To find out, the DailyFX research team has looked through over 40 million real trades placed via a major FX broker’s trading platforms. In this article, we look at the biggest mistake that forex traders make, and a way to trade appropriately."

And last but not the least, everyone has the right to disagree with the opinion of others, but he should do it in a decent way and should not use any harsh or insulting word for other fellow member.

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You may check his other videos "Professional Traders Vs. Retail Traders series at his channel “Institute of Trading” at Youtube.com.

You might like it too.