Why do more than 90% of traders lose?

Here is an interesting article i came across.

http://articles.latimes.com/2011/apr/03/business/la-fi-amateur-currency-trading-20110403

Think real real real hard if you want to pursue trading. Your dream of making money, your dream of getting rich quick, your dream of driving a Ferrari are all a myth. Movies u watched how traders get rich quick are all a myth.

The reality is, more than 90% of small traders lose!! They just lose!!!

I am looking for the best answers

 

A quote from the article above

Jeff Goodwin, a 23-year-old Internet entrepreneur in New Hampshire, said that after a few years of losing money in the market, he recently found a strategy that has been turning a steady profit. But the potential for big losses is what makes it fun.

"Is it gambling? Yeah," Goodwin said. "You easily get addicted."

 

Everyone has to pay their dues, for some it comes earlier, for some later.

 

The irony is the answer on how to make money in any probable statistical based venture lies in that very same article posted to discourage neophytes. If can't spot it then it answers also a lot of questions without asking.

 

L.E.V.E.R.A.G.E.

 

I thought this was particularly sleazy: (from the article) ...""The majority of people today are on a quarterly basis not doing well," Drew Niv, FXCM's chief executive, acknowledged in an interview. "There's lots of education showing, 'Here's how to do it right.' … Do most people heed the advice? No, of course not."'

He makes it sound like everybody should be making money

 

you are right about that. I missed that part. Looks like i may create a scam brokerages list. I heard FXCM and Gain are not good. They are ripping off their clients on slippage.

 

Just a stupid question, but why is it bad (or unusual) that there is a high turnover in this business?
Imagine if those losers quickly left the industry. Wouldn't that dry up liquidity?

So the OP's crying about high turnover rate is like whining about having too many fish/newbies at a pokertable. Simply put, stupid.... They bring fresh money, and if most trader were winners it would be much harder to make money....

 

CHANGE IT TO 99% OF ALL TRADERS LOOSE IN THE LONG RUN.

No diff between casino and 99% of all trading. its the same. atleast in VEGAS , u get drinks while u r getting ripped off. ha ha.

 

I'll take a stab at that.

It's not necessarily 'bad' in and of itself. But couple the statistics with the advertising about 'how easy it is' and 'quit your day job' type marketing, and it's pretty sleazy.