Why 90-95% Traders are failure?

[wahid93]

Hi everyone,
I just need information why 90-95% Traders are failure in this market? If you know what’s the actual reason please let me know and we will avoid the reason
Thank you so much

[midwest]

First that well publicized is badly skewed the way data is calculated,

But it is true that maybe 80-85% of traders leave with less money than they started.
About 2 years ago investing.com did a very large study of this and discovered that something like 55-60% of traders entered a trade properly but then blue the trade management.

My personal opinion is psychology, folks don’t know hoe to gamble like the house and when they do grasp that aspect folks fail to control their emotions

[Tony229]

I would say there are a handful of reasons:

• Poor risk management (risking more than 1% of your trading pot per trade)
• Not having a trading plan that states how they will enter and exit a trade
• Chasing “trains that have already left the station” - Almost guaranteed to fail

Putting it the other way round, if you have:

• A spreadsheet that you always use that tells you how large your stake should be so that you only risk 1% of your trading pot per trade

• A trading plan / trading rules that you have done some decent backtesting on to make sure that the plan works

• Managed to overcome “itchy finger syndrome” and closing trades prematurely

Then you should be able to make some money over time.

Happy trading

[wahid93]

Thank you so much

[wahid93]

Thanks a lot for your kind information

[midwest]

Your sure welcome.

[anon46773462]

I just need information why 90-95% Traders are failure in this market

The recent ESMA regulations require that brokers operating in their jurisdiction must show on their websites the failure rate of their clients. Currently, these seem to all reflect a failure rate of about 80%

As for the reasons, if you put “fail” in the search function you will find lots of threads full of suggestions why this is. This is obviously an issue that concerns many traders and therefore this question has been asked many times before.

Read, learn, and avoid! Good luck!

[krugman25]

I second @anon46773462 . This topic has been covered countless times. Please search this question in the forum search feature (little magnifying glass in the upper right corner of your screen) and you will no doubt find many good answers to your question.

[jennyscott]

There is really no end to this topic, as many traders still fail to heed the warning and advises provided here. I think maybe they need the reminders, we all do.

[midwest]

Jenny my reminder is in my equity or more aptly put my edge.

[krugman25]

I agree, traders will fail ad infinitum, but the reasons will always be the same. All of those reasons are well discussed and saved for posterity and easily found using the forum search feature

Here are the first few of hundreds of results that cover this topic. There is some good stuff in these threads, so I would encourage anyone wanting to know to read these. It will likely answer any questions you will have.

Why do traders Fail?

The most of the common reasons for fail : They trade with the aim of getting lucky to make money. Their greed exceeds their need. They think trading is a game of chance and luck and do not get the proper education to succeed. They don’t favor to invest enough time and amount for education and mentor-ship. They have Poor focus. They are more emotional than intellectual. After failing, they want to make up their loss; therefore they may further incur loss.

They say approx 95% of all retail traders fail to back a profit

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Why do almost all Forex traders fail

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Do 90%-95% of traders fail? Some actual data

The question of trader failure rates is one that gets talked about pretty regularly here, and in many other places. You need look no further than the http://forums.babypips.com/newbie-island/39-90-traders-lose-money.html thread, which started back in 2006 and continues to generate discussion! As some members know, about a year ago I finished up my PhD. My research focus was on the performance of retail traders, particularly those in the forex market. For my work I was able to use a data set of …

Why 90% of traders fail.... an alternative outlook

90% of traders fail… everyone knows it… but WHY? Most people put it down to psychology, or system chasing etc … but I propose there’s another reason, one that probably applies to most new traders: FUNDAMENTALS… Without Fundamentals you are gambling… trading on the CHANCE that a pattern if traded enough will eventually win… With Fundamentals you are INVESTING… there;s a big difference… sure you enter and exit markets technically as you need a consistent method for actually trading, BUT if you…

Main reason why Forex Traders Fails in trading

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What Make's Traders Fail

Hi There A thought provoking article. It has been estimated that 8 out of 10 individuals who attempt to trade make no money. A recent survey of daytraders in the US found that 75% had lost everything within two years. This is an astonishing rate of failure in any endevour, what is even more amazing is that this rate of failure has stayed remarkably constant for approximately 150 years. This is as long as records of speculation on futures exchanges have been kept. I would theorize that as long …

[midwest]

WoW krugman that was certainly a quick compendium, kewl! thx

[krugman25]

@midwest no problem. That was just the top 8. The list of threads that discuss this topic go on and on and on. Lots of gems in these threads if someone wants to put in the time to read them.

[cigarmanstan]

So, you are saying there is no easy answer…?

[jennyscott]

This is really great, thanks man. I really appreciate your compounding these posts together.

[TradeViper]

Lack of self control, then there is lack of self control. However I think the BIGGEST reason is Lack Of Self Control.

Te Ever Focused VIPER

[Mutisya_09]

Most traders are gamblers looking for a rush of dopamine when they push a button and make money. Trading is addictive. And generally most people suffer cognitive dissonance and therefore become their own worst enemy when they can’t sit down and watch their trade hit profit because of fear. Or add to losing positions cause God knows the world will end if they’re ever wrong. Most traders aren’t the smartest people in the world and I’m at the top of that hill cause I shouldn’t still be in this industry. I should have been wiped out in '08

[wahid93]

Alright thank you so much

[jorgemontero]

Professional traders dont chase the money. They chase a trading plan and the money follows.

They know that even when they have a losing month, they will end profitable at the end of the year.

Amateurs change trading plans when they have simultaneous losing trades, they chase the money and the money stays away from them.

[TonoFX]

Hi Wahid93,

I have been trading forex since 2010. I have been successfully trading forex since 2015.
Of course this is just my opinion, but the reason I believe most traders fail, is that most traders follow the same learning path to forex.

Like Sheep, they follow the same principles and like Wolfs, the Market Makers slaughter them.

A few examples:

1. They are taught right out of the box to minimize their risk by using SL, so they all place their SL in clusters at certain predetermined levels. Market Makers know exactly where to push the market to stop them out.

2. They continue to use lagging indicators.

3. They don’t take the time to fully understand Price Action, Support & Resistance, Strong vs Weak, and Money Management. (Just a few)

4. They learn to trade forex from so called forex gurus that don’t really trade but make their living off teaching unsophisticated new traders strategies that just don’t work.

5. They don’t want to pay for quality Education and Training. They rather learn from the internet and not from a successful mentor.

6. They enter the Market under capitalized with a dollar and a dream mentality. They believe that forex is a get-rich-quick solution to their money problems. It takes money to make money or better yet, the amount one can earn from trading forex is relative to the amount of one’s account.

7. I can go on and on but these are just few examples of why most traders fail.