Can’t say anything about the stats but Yes, the percentage of traders who fail is incredibly higher than the traders who win. However, I also think that has nothing to do with your individual success. Despite the majority of traders failing, you can still hold a chance if you follow the rules that failures avoid. Risk management, following a trading plan and keeping emotions aside are well-known facts but are not followed by everyone. To get a different result, you must do what everyone else is not doing.
It is not possible to sum up all the possible reasons behind the 90% failing rate of traders. Every trader has different weak points and they need to identify those in order to really succeed. As with me, I started with a small capital but failed and then when I searched about the reasons of failures I found most of the “trading gurus” emphasising the importance of having a huge capital to start trading. I thought I’m undercapitalized so I invested more money and then I failed miserably. The problem was that I couldn’t afford to lose the money which I invested and that made me over emotional and biased in my decisions.
Most people come into the market thinking it is a get-rich-quick scheme so it is easy to understand the high percentage fail rate, it is just like a business start-up. If you want to survive and succeed in the market, you need to equip yourself with good knowledge and preparation, also alot of trials and errors (you can check a quick beginner guide here)
Yeap, one of the perspective that newbie tends to think that they can get rich overnight and all of these became a false hope the moment they lose money when trading.
Yeah right! No one can become rich overnight via forex trading. It demands proper time and patience along with sound knowledge of the market and proper risk management strategies.
This percentage of losing traders scared me too when I was about to start trading. But then I decided that I will work hard and come into the category of the winning traders, no matter what. I can’t say that I have come into that category but I know that I am on the right path and will be there someday. Currently, I am working on improving my trading plan and have plans of increasing the risks so that I can improve my profits.
its a very good reply with some good information , got some fine lines , thanks again for your nice post.
I bet it is even higher than 95%. Forex is THE HARDEST way to make money from trading. Every single person I have tried to get into forex has given up, I get people messaging me for a few weeks, then *poof* they are gone.