Where did the "90% are losers myth come from?

Discussion in 'Psychology' started by human151, Apr 21, 2009.

  1. human151


    I am by no means and proficient trader. Im still learning. That said, when I see people say that 90% lose when trading, I want to run for the hills.

    If that were true, then how would all the brokerage firms, online or otherwise, who cater to the individual trader be able to stay alive. If 90% are losers then it seems logical that they would run out of customers because once everyone loses thier money they cant be a customer obviosly.

    I know a few other people who trade consistently and they dont lose 90% of thier money. So are they the luck 10%? I doubt that.

    If you do your research, learn to read the charts/trends and educate yourself how is it logical that 9 out of 10 trades are losers.

    Doesent make sense.

    Im just a guy looking to learn trading, as many others have and gain the knowledge to do it for a living, as many others have.

    Can someone tell me why I am wrong?
  2. Influx of new traders?
  3. 1. It is a mathematical result.

    2. If you do not believe it, answer this: where does the money of winning traders come from?
  4. You are wrong because instead of trying to think of ways to make money you are trying to figure out what, if anything, is wrong. That will take you nowhere, my advice to you.
  5. human151


    influx of new traders?

    I doubt that. all these brokerage firms are being kept in business by constently getting people new to trading? I would think new traders would be the more conservative ones, and thus not make many trades at first, which equals less $$ for said firms. Olders traders who know what they are doing would be the ones make more trades and more $$ for the firms. The brokerage firms cant be sustained by only thir 10% or winners, or can they?
  6. It's kind of like when people claim we need 8 glasses of water a day for optimum health. It sounds good and it's probably close to the truth but there's no empirical data behind the claim.
  7. human151


    "You are wrong because instead of trying to think of ways to make money you are trying to figure out what, if any, is wrong. That will take you nowhere, my advice to you."

    and thank you for your advice.

    im merely trying to gage the odds. If the 90% statement is true, my odds are better if I were to play roullette. But I think an educated investor has a better chance than betting on a roullette wheel.

    But I may be wrong. Im just trying to decide if trading would be worth my time and effort and of course money, if I have a 90% chance of losing it all, just because thats what happens.
  8. Is there any chance that the losers are doing the counting? :)

    If you were making good money from trading, would it matter to you what other people were doing?
  9. Examine a chart that depicts a picture-perfect example of one of your highly profitable setups (assuming you have at least one).

    Who were all the people pushing the market from your entry price to your exit price? Were they part of the 90% or part of the 10%? What percentage of market participants can realistically get filled on the edges of price swings that you view on your primary timeframe? If you're not getting filled at least somewhat close to market swing points, how are you overcoming all of the costs of this business, such as spreads, commissions, and losses?
  10. No, no, no. You've got it all wrong. 90% of all traders make money, and they take it from the remaining 10% who don't know what they're doing.
    #10     Apr 21, 2009