They say approx 95% of all retail traders fail to back a profit in this Forex business.
I was just wondering if some of you traders out there are apart of the 5% Successful traders.
Brokers and Fat cats out there make forex trading look like a piece of cake, stuff like “you can double your capital in less than a month”, “Forex is the biggest market in the world! there is $$$$$$$$$$$$$$$ to be made!”
But don’t you think it’s ironic that the statistics show otherwise…
I mean this is really scary stuff!!! What will it take to become apart of minority successful retail traders?
Thats nothing, only 1.5% make huge profits, so really, the 5% are really just making it, in small, consistant returns. Nothing “out of this world”, but do stay in the green. Its that 1.5% that are truely wealthy from Forex.
Not to forget, i think 85 of those 95 never completereading fully before they start to trade…and about 50 of those totally gamble 1.5% is still achievable …its like out ranking 99 people …( possible if you are dedicated and have patience )
Ya, they said so, so that you deposit and make money for them! It’s business as usual, mate.
Who are part of the 5% in this forum. I doubt it because successful traders don’t show up a lot, there is probably a few here. However, whoever said that they belong to 5%, always doubt it, remember those brokerage, signal providers, affiliate stuffs to lure you into the game… those pretend to be 5% are probably themselves.
Always think like this: if they are profitable, they don’t have to sell anything. Simple.
95% of people fail because they expect it to happen over the space of a few weeks, or months maximum.
It took me 2 years until I generated consistent profits.
It also takes a certain type of individual, one that can manage their emotions.
The ironic thing is - Gamblers are attracted to forex trading because it’s seen as an opportunity to make massive profits in a short space of time, but they are the type of people that have the most trouble managing their emotions and end up taking stupid risks and losing their account.
With that attitude, you don’t. Your own mind will determine whether your successful at trading or not, because it is a self motivated business. Trading is a battle between what you need to do, and how you react to that situation. For example, I am in the position where I have a system that works, the barrier that I’m defeating right now, is my emotional capability of sticking to my strict system rules. Once a couple losses in a row happen, your worst enemy is doubt. It starts as a small side thought, but will grow, like a virus. In my case, I’m dedicated and fully confident in my own success. That is what keeps me going.
The stats you posted are more or less correct +/- 2-3%. It’s true most people do lose money trading. But in all fairness, many do not put in the work they need to. Many see trading as gambling; a get-rich-quick scheme per se. Also, this would also include the system hoppers, and individuals looking to make a million dollars by buying a “robot” for $97 on the Internet.
But at the same time, this is a business, and it’s dog-eat-dog in here. You have to beat the best in order to make it big. That’s not to say it’s impossible. It definitely can be done. Think outside the box, experience and knowledge are your best friends. Then it’s about controlling your emotions as a trader. Letting winners run and admitting a loss when you need to. It’s all very easily said, but in practise it could take years and for some people, never.
Interesting fact, I can’t remember who told me, but the average futures trader loses $50K before they start seeing a profit or give up.
I believe that that statistic is very true in new traders, simply because so many come at it as a easy way to make money. That percentage that come at it with the knowledge that it is a business, and a long term goal will succeed. I for one knew it would be tough, but realized how rough it really was once I got into it. I like to think of learning to trade like a personal way of going to school. Come at it with the mindset of college. You train in school for your career, then you actually have to get into your career and train to move up. So in trading, there is a long time of training, months or even years depending on time available and commitment. The time you put in will return equally, it just takes a while.
Let me explain where i am. I started trading about a year ago. I traded equities initially and then moved to forex. It took me about 6 months to test different systems, indicators, and time frames until I even picked a system to stick with. Then I moved into what I like to think of as the emotional training phase. This is when you have to train yourself to follow your own rules. It sounds simple, but it’s simply amazing what happens when emotions take over. I currently am falling more and more in love with this business and am fully detonated to the process and in building this business for the rest of my life. This mindset, I believe, is absolutely essential to success.
Happy trading everyone! I hope my 2 cents helps you in some way or another!
Bill Morris
That’s all from experience honestly. When I first started 3 years ago, I had a plan on turning $200 into $9.8M in 3 years. I had it all planned out on a nice little spreadsheet. 3 weeks in and I’m at $165. Luckily, I stopped and re-analysed my current position. Took a lot of guts and self-respect to accept the fact that I’m not as smart as I thought I was; it’s hard for a 15-16 year old to admit that.
In hindsight, those were all my phases as I developed into a trader. Only now can I say I am finally (FINALLY!!!) profitable. Hahaha
Oh yea, spreadsheets!! I did the same thing! I call this “sickness” blinded by dollar signs. Opening a small mini lot position while picturing driving your Ferrari to the marina to cruise in your yacht that on the spreadsheet, looks possible in 2 years. Haha then comes a vicious reality. “hi, I’m the forex market and I couldn’t care less for your car and boat, buhbye!!”
Definitely agree. I mean, I’m just thankful I went through that stage without too much loss. And now I can happily pay for my schooling, living costs as well as by myself a vehicle. Granted, no Ferrari, but I’ve learned to keep things realistic now. Just have to set goals that are obtainable.
Exactly. There’s nothing more important than the losses! The key is, small stages of live trading during the learning with set losses this saving a blown account! It sounds like I’m a while behind you, being that I just started gaining consistently, but I’m getting there!
Slow and steady wins the race!
You’ll have your Ferrari, someday!
I do not want a Ferrari, or a million pounds (that’s pound sterling, as in £££). What I’d really want is a regular income from forex, enough to pay my. And the neither do I expect easy money either (I worked damn hard to make money through property, while alot of other people were losing). But what I do not like about forex, and maybe it’s psychological or just that I do not have the experience yet, is that it is unreliable. Ie, you can work your socks, and still not say with certainty how much you will make at the end of the week.
