The high failure rate doesn't say anything about your abilities to trade. If you only do things that can be done by the majority you will never be "above average" in anything. The majority doesn't go to the university, doesn't make lots of money.... so you will never try to do that? Talking about the failure rate is indeed very ridiculous. The only people for who these failure rate is important is for those who never succeed in anything and use the failure rate as an excuse for their personal failure. All inventors and most of the very succesful people (not only moneymakers but also sportsmen) are examples of how you can be "out of the high failure rate".
doesn't IB release figures early stating how many people made how much money on average or something similar??
The high failure rate says it ALL about your CHANCES to become one of the few. Most (+70 %) of start-up companies fail within the first 2 years, day trading is just like any other business. "Many are called, few are chosen"
The high failure rate says nothing about my chances, it says only something about the statistical chances as part of a big number of participants. Not your chances are important but your abilities. I make consistently a little bit of money as a daytrader, and i still survive driving my car. However statistically i have more chances to get killed in a car accident than to make money as a daytrader. The reality, for me at least, is just the opposite of the statistics. So to me the failure rate is ridiculous.
I'm glad no one told me those statistics when I started. Otherwise I might have never even have tried.
I am talking about the chances of the wannabe's starting out with day trading ,not about you (spike500) who has already made it as one of the few. The reality is you are one of the few who made it, this is not the opposite of the statistics, just part of it. What the statistics say is that when you pick randomly a guy from the street who starts with day trading , probabilities are that he will never make it.
they usually fall under the 5% who make it.... some reasons why. 1) well capatalized...hubby brings home the bacon 2) they dont overtrade....to busy folding
That is exactly why to me these statistics are ridiculous. They pick a guy randomly and apply his chances on you, while you are surely not identical to that randomly chosen guy and you may have completely different abilities than the random guy. The only correct way to get an idea about your chances is to compare the necessary skills needed for trading with your abilities. Depending on who you are and how far your profile matches the needed skills, your chances will vary between 0 and 100%. At least 50% of the wannabe's do not have the minimal required skills to even start trying. But they all think they do.
everyday I fail at trading ... but my wins far outnumber my losses so I usually make a few % each week on my P+L I did however almost really fail bad this week thank god I ended in the black 3-4 % A few yrs ago I was failing everyday or every week a trader can overcome his failure (s ) but it is not easy and even a successful trader can be a failure in other aspects of his or her life be humble and be happy if you are not at this time one of those 98 %