Definitely! More than 90% of the traders fail in the forex market. Mostly, it is because of the bad trading psychology and the lack of commitment to trading.
The 90% number came I believe from a study of US day-traders carried out by a large brokers possibly in the mid-90's. This concluded that 90% of US day-traders with accounts with this firm lost 90% of their account capital within 90 days of starting trading. Of course, day-trading exploded into popularity in the 90's so a high failure rate should be no surprise. Its like when people talk about the gold prospectors in the Yukon mostly losing money when the pick and shovel vendors made a profit. Well, yes, that's what happens during a gold rush - people who know nothing about gold or mining or business get sucked in and they lose money. But in times which are not gold rushes, most people who are professionally mining gold are making a profit. Either way, when brokers are reporting 70-80% loser rates, the conclusion has to be that over any lengthy period of time the vast majority of traders lose money.
I know this is a bit out of place here, but really, what were you doing when you typed that? *snicker*
Every business has some rules that are essential when a trader starts his business according to these rules, he will be successful 100%. When a trader starts his business without abide by these rules, he will not be successful. Therefore, 95% is a middle stage, where the trader abides by some rules while avoiding others.
The failure rate may or may not be true exactly but the estimation is quite near to it. The number of traders who lose is more than the traders who win. The biggest reason is it is easy to enter the market but surviving here takes a lot. Majority of the traders come with a hope to make money easily only to realise later that it's not easy at all.
Most traders lose in their initial days of trading due to a lack of knowledge and/or experience. If traders can just figure out the right entry and exit points in a trade along with a risk management strategy, they might stop losing big and therefore, continue to trade for long.
The statistics are kind of depressing, but you have to account for all of the people that decide to open a trading account with no education on the subject. All of those traders will fail, along with some that are legitimately trying to trade the right way. Others put faith into systems and scammers and lose because of that.
A high percentage of traders fail in trading. Hardly, 1-2% of traders make consistent profits. Incomplete forex education is the prominent reason behind traders’ failure.