How Do The 5% Of Retail Traders Make Money?

@anon46773462 : nice to hear your success.Congrats! May we know please what tech/tips works for you?

That’s quite a challenge to squeeze into one post on a forum! :wink:

Personally, I think a trader needs to put greater emphasis on their own mindset than on the actual method they are applying. Of course, it is essential that the method is viable and produces a positive expectancy but, like with any machinery, if the operator is not skilled and experienced enough then they cannot extract the maximum potential from the machine. We need to gain that expertise in handling our trading approach and also in reading and understanding the markets that we are applying it to.

I believe it is necessary to build confidence in oneself and one’s method. This demands strict discipline and repetition as well as a comprehensive journalling of all trades and their attributes.

Above all, one needs to approach one’s trading as a serious business venture. We should take pride in what we are doing and seek excellence in our achievements. All successful businesses have a clear business plan, a method, a product, defined objectives and a regular review process of progress as well as a fault analysis and correction procedure. Why should your trading deserve anything less than this?

But I think that is enough, if not too much, for one post! :laughing:

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I think 5% is very optimistic.
Ther are hundres of thousands of (wannabe) traders and decent trackrecords are few and very difficult to find.
After a significant amount of time like 5 years only 0.1% of traders is successful.
Even losing traders that persist are lower than 1% after 5 years.
It is evident if you monitor the social trading world and also forums like this one, the average user is active for some months and than loses money and intertest.

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I feel there are very few large winners, few large losers, few small winners and plenty of small losers.

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lots and lots of practice with psychology

Worth reading about the Turtle Traders to improve your chances of success in trading. The system contained some fundamental guidelines which drive the trade strategy to its absolute max. The TA was simple and it maybe not even particularly good, but the guidelines they followed really maximised their edge -

  1. wait for the break-out, but then take every entry signal
  2. set every trade at the standard maximum trade size
  3. use a stop-loss from ATR20 so that no trade can go more than 2% down
  4. pyramid the winners aggressively, dragging the stop-loss each time

No.3 is the easiest to put into practice but even this is a test for many traders.

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After 6 years I have decided to move on to another trading forum.
I have made some good friends here, some of whom have also moved on.
Good luck with your trading, stay safe.
eddieb

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