If there is no research available on this, then where do you get your 99% from? A cloud in the sky?
The true number might be 99% or it might be 98% or it might be 97.456321%. It really doesnāt matter. What is inevitable though is that the vast majority of people who enter trading will leave it with less money than they started with.
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Correct! Thereās a big number that ends up in losses here, for reasons different for every trader.
What is really in play here is the law of Negative Expectation. It is this law that makes casino games mathematically impossible to beat. In Trading the Negative Expectation comes from the Spread , the difference from the buy and sell price. The more often you trade and the smaller your profit target is the more the Spread works against you
Example; if you are trading with a profit target of 100 pips against a spread of 2 pips that is a market advantage of 2% you must overcome, but if you are day trading and try to get 10 pips out of each trade that 2 pips spread is a 20% market advantage that is nearly impossible to overcome
No matter how good a trader you are or how much research you have done, Trading is still a game of Math and the Math does not work out for the Day Trader
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Exactly. I would add the fact that they are expecting a quick buck from seeing only to be left disappointed knowing that trading is much more than just a quick way of gaining money. It involves determination, patience and a lot of preparation.
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I think majority of people loose because of the lack of basics knowledge about trading,risk management and patience.
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Hi Open_pips , welcome to Baby Pips,
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Thanks for that info
I think retail day traders always look for short term highs and this will develop the greed factor in them. I am saying this as I also went from this phase. New day traders must keep patience to see their money grow and exit the position at the perfect time.
Hi COKE71, Welcome to the thread
Add this to why most will fail, they need to be perfect in there entry and exits, few can do this over the long time
In one of her books, Kathy Lien makes a rough comparison to climbing Everest that I like. People spend years preparing and training; becoming semi-professionals before they even attempt it. Imagine the fatality and failure rates if the average, untrained person without the proper equipment, knowledge, or experience decided to just go at the mountain!
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I think itās not 1% , now in this new era 20% trader making profit.
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I think there are some reasons to lose them. These are, firstly, they cannot control emotions, secondly, they cannot follow money management and risk management, thirdly, they cannot follow discipline and plan. If these issues are followed by a retail trader, he will never fail in trading.
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how can you tell if the broker is unregulated ?
If you are talking about Traders in general trading long in a bull market then it is likely more than 20%, but as soon as the market drops of gets choppy the 99% will lose
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Simply, the aim of new traders is to make big money.
They think the game is easy, but have not learned the game.
Trading is simple, but emotionally taxing, and you only really learn the hard way about position sizing and how to handle an account by losing everything. It is an exciting business, but can take a lot of time to learn the ropesā¦
This is why most traders fail, not to mention the bucket shops offering them 100 X leverage.
ha ha ha.
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analysis is important but any kind of analysis not works for all time , should change after passing sometimes.
Iām coming up-to my 5 year point in trading. It was a bumpy ride for 3 and a half years.
After system hopping and jumping from one mentor to another, I eventually realized my trades were being hit by stop runs. It doesnāt take long to work out what time window this takes place in the trading day. So now, my trading is consistent. I wait for the stop run to take place THEN I look for my position.
Itās really helped a lot.
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