the 95% stat is really demotivating, but I believe if I learn correct and proper technical analyse surely I can be part of the 5%. or is trading really that hard? Im 17 tryna stop myself joining the rat race.
The true stats are not (quite) as bad as 95 percent.
UK and EU brokers have to publish their client stats and their losing traders are consistently 70 to 80 percent.
The only advice I can give you is… have patience and try to grow a small account before putting real money on the line.
Trading is a really hard business… and you need extreme focus, discipline and adaptation to market conditions.
So take a 200$ account and try to grow It at least for a year, see how much you can Make… and then decide if it’s a possible business for you.
Like if you made 10% in a year… and you need 30K a year to Make a living… you Will need a 300K account to live from trading ( if you can consistently Make 10% every year)
True story
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That won’t help you become successful, although it could save you blowing your account quickly.
What is importand is to learn how not to lose money instead. Without capital you cannot trade.
On the positive side, if you can develop a method and process that is profitable, and then stick to it every trade, you have only FEAR & PAIN emotional reactions to contend with. And that is where the 70-80% of traders fail. So you will need to learn to detach your mindset from making money - think in percentages terms instead.
Best of luck.
thanks for your nice post with good information.
I’m not even sure how true the stats are. I don’t know how they’re calculated and the only publically available studies are small, out of date and of questionable stistical significance. However, I wouldn’t argue with the underlying thesis that most new traders don’t succeed initially, but if you manage to remain trading for over 2 yrs or so your chances of succeeding are higher.
You can have more loosing trades than winning trades and still be nicely profitable, but a selected statistic could to show that a person is loosing more than they are winning. Just skewed statistics to put people off and ‘protect them from loosing money’
I would consider that a lot of that statistic is made up of people who never took trading that seriously to begin with. A lot of people just want to make easy money without putting in the work. If you’re dedicated, you have a much higher chance to be successful than anyone that never intended to really try.
You will figure it out on your own really, everyone has a different experience in the market so it is tough to say. Try and learn by practising and trading live.