90-95% lose money in forex market?

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If this forum is any representation of the success rate;
the success rate is

1 in 133,000

and everyone else is a liar.
 
Hoggums said:
Were you in the top 5% of your class?

Do you earn more money than 95% of the population?

Are you more intelligent than 95% of the population?

Have you ever done anything in your life special that separates you from 95% of the population?


If the answer to all of those questions is "NO" then what makes you think you will be one of the select 5% that actually makes it in forex?

Think about that before ploughing in your life savings...
Click to expand...

There's no reason why you can't be in the top 5% as a trader and sh*t at everything else.
 
Depth Trade said:
If this forum is any representation of the success rate;
the success rate is

1 in 133,000

and everyone else is a liar.
Click to expand...

This thread was begining to show signs of a decent debate and then this clown turned up!
 
These figures of 95% losers and 5% winners are generally thrown about but it depends on how you look at them.

This is the way I believe it to be:

95% may be losers and 5% may be winners and those figures may stay constant but the traders within those statistics are forever shifting between the two.

Nobody ever wins 100% of the time and nobody ever loses 100% of the time (not that I know of anyway)

So those winning 5% will eventually have some losing trades and shift into the 95% and vice versa.

So are 95% of all traders losing at any one time? Well if those figures are to be believed then yes.

Your goal is to try and stay in the 5% for as long as you can.
 
bfd said:
Hi all,

I have read that in the Forex market 90-95% of investors fail and lose money, this is quite a shocking figure.

Are all these people who are losing money beginners who are not taking the kind of advice on this forum, eg sticking to a trading strategy in a dicsiplined way.

Are they just jumping straight in without using technical indicators etc? Or are they taking all the advice but losing money anyway, simply because its extremely hard to actually win at trading?

I'm a beginner and have only just opened a demo account but i intend to learn as much as i can before I trade with real money. I'm starting to wonder if I'm wasting my time though, why should I be in the 5% who make money with trading?

Thanks.
Click to expand...

Hi bfd

Regardless of whether 5% or 1% or even 0.1% are successful, of those that are, what percentage were successful from the start? - Close to 0% I'll wager. The minority percentage that are successful in trading stuck with it until they figured out how to get money from the market - the remaining 95% or more gave up.

If you expect to make quick money and be good at this from the start, you are setting yourself up for failure. It can take years and you can and will lose money in the process. In most jobs, you get paid to learn and you don't lose money while you are learning. Trading offers no such luxury which is why so few stick with it (and add themselves to the 95% pile).

I am a strong believer that almost anyone with a good level of determination will succeed in this game. Some grasp it quicker than others, but I am confident if you give the market your all over the next 5 years, you'll figure it out.
 
Last edited:
About trading and FX in general. The markets will teach you everything you know. It taught me and taught me well. It will show you who is out there to really take your money, not just the market, but your broker and everyone else in between. Eventually you will find yourself in a state in which you have to be more cunning and take money from them. Risk mangaement is key yes. Profits come with great risk management. Don't be too negative, alpha can be made on the retail side of this business and when one starts to generate that. You become a different person that words can't really explain. More selective, more tolerant up to the point where when you enter a position it doesn't take long for you to end up in the green. Just don't ever give up. I never did I'm still alive, I still pay my dues to the market for being allowed to play in its arena. It pays me however when I have done the best I can on a trade that I've planned for so long before and after. I don't trade all the time because opportunity lost is not money lost. It's money and ammunition preserved for later encounters when the market gets hectic. The market presents tons of opportunity so why think that you're part of the 95% that lose. I sure as heck am not part of that rediculous number. Just be patient, resilient, consistent and un-emotional.

Best Regards,

-FXC
 
Jaydee said:
Hi bfd

Regardless of whether 5% or 1% or even 0.1% are successful, of those that are, what percentage were successful from the start? - Close to 0% I'll wager. The minority percentage that are successful in trading stuck with it until they figured out how to get money from the market - the remaining 95% or more gave up.

If you expect to make quick money and be good at this from the start, you are setting yourself up for failure. It can take years and you can and will lose money in the process. In most jobs, you get paid to learn and you don't lose money why you are learning. Trading offers no such luxury which is why so few stick with it (and add themselves to the 95% pile).

I am a strong believer that almost anyone with a good level of determination will succeed in this game. Some grasp it quicker than others, but I am confident if you give the market your all over the next 5 years, you'll figure it out.
Click to expand...
My point exactly. I figured it out and it did take me about 5 years to do so. I feel so much better and more in tune with the markets unlike before when I was reckless and blew a few accounts trying to double it in a week or less. Your capital compounds overtime if you remain consistent and not give in to those impulses of random excess risk taking.


-FXC
 
So those winning 5% will eventually have some losing trades and shift into the 95% and vice versa.
Click to expand...

In my view this is not what is meant by the statement. It is that only 5% make consistent profits on an ongoing basis. Otherwise you may as well include every trade taken which would see a shift as you have described.


Paul
 
In my view this is not what is meant by the statement. It is that only 5% make consistent profits on an ongoing basis. Otherwise you may as well include every trade taken which would see a shift as you have described.


Paul
Click to expand...

Hi Paul,

Yes I agree, I looked at that from a completely different angle when I first read it. :idea:

Mark.
 
Iotrez said:
If that is the case then is it really worth doing it?
Click to expand...

It has definetly been worth it for me. What other profession gives you the freedom that trading does. You can trade from anywhere in the world, with a laptop and a internet connection, I spent 2 months in Costa Rica, I traded for an hour each morning, while the kids where asleep, Made more then enough to pay my monthly expenses and paid for the trip. It takes 7-8 years to be a doctor, then you are stuck at work all of the time. It took 1 year to be profitable, and I can trade from anywhere in the world. No boss no upset people to deal with and the money is limited only by you. If you need more money, trade better, it is totally up to you. If you are commited, and study hard, put in some real time it gets easier, and it is definetly worth it!
 
FXCapitalist said:
... I don't trade all the time because opportunity lost is not money lost. It's money and ammunition preserved for later encounters when the market gets hectic...
-FXC
Click to expand...

Great line. That idea gets lost on many traders both new and old.

Peter
 
UKtradergirl said:
Even if 99.9% of people lose money, someone has got to be in that 0.01% that gains! Why not you?

What i will say though is that you need to be very committed to doing this in order to succeed. The ability to take losses is a plus too, even if you have a 90% winning strategy (rare indeed)- you will still be losing 10% of the time. You need to be able to adapt quickly and constantly redefine how you trade in order to survive the changing conditions. What at first appears to be a 'holy grail' of trading can quickly turn into the best way to give away your cash.

You are doing the right thing by trading a demo account, keep up the good work. You should soon be able to tell if you have what it takes to continue- not just by the balance of your account but from your own reactions to your trades as you win/lose- you must be very self-critical and strive to forever better yourself and your position.

Trading is by no means guaranteed money, but with careful planning and risk management, you can keep your risk to a minimum... and the rewards are definitely worth it.

I think the longer you are in the markets, the more you realise how little you know and how much there is yet to learn. Time to take stock and decide to either go at it 100% or to just quit.

This is serious business, not a game, and should be treated as such. What you put in you will get out as in any other field (although some people choose to gamble and do get lucky too- but if i wanted to gamble i'd rather go and back a horse).

I hope you choose to take up the challenge and continue. (capital allowing- please don't get into debt to trade!).

UKTraderGirl
Click to expand...

Hi
Can you recommend any decent training cds ?
 
Good advice from uktradergirl,some people put money in and let their account blow. If they are on an account that cuts out when the money is lost.Everyone is different, put some money and blow it. This is the only way to learn,after your p. account.Have some fun loseing it. Think of how much you spend on a night out,do you always have fun on a night out?.How do you know you are not one of the 5%? winners.
 
In keeping with this thread, I'd be curious to know how many traders here actually make a living trading as opposed to traders who make vacation money, or pocket change. I'm working on this and have realized that there is going to be a long learning curve, but I'm committed to the process and know that with time I will learn how to be profitable, and when that happens my wife and I are headed to live in South America.
 
rmartin008 said:
In keeping with this thread, I'd be curious to know how many traders here actually make a living trading as opposed to traders who make vacation money, or pocket change. I'm working on this and have realized that there is going to be a long learning curve, but I'm committed to the process and know that with time I will learn how to be profitable, and when that happens my wife and I are headed to live in South America.
Click to expand...

I trade for a living. Meaning, that I pay all of my bills from my trading profits. I make alot more then pocket change and vacation money. You are already ahead of most people knowning that the learning curve is long. A friend of mine took 9 years some part time some full time before he was profitable. It took me a year, 6-8 hours a day to be profitable. My uncle took about 3 months of sim trading, then went to real money and is very profitable.
Just stick to it and it will come. Now south america, I love those countries, I travel to Costa Rica once a year with family and friends. We try to stay for a couple of months at a time. there is no internet at our place yet so I drive 20 minutes to trade at a internet cafe. I have got to know the owner and he gives me a private room with secured access when I am there.
keep trading and one day you will be in south america, living the dream
 
I've been trading/investing in markets for 20 years, but only the past 2 years have I been daytrading. I make a bit more than just pocket change but I never felt comfortable trading for a living. If I knew I had to depend on trading to pay the bills it wouldn't be as fun. It's much easier to take to losing days knowing you don't need that car payment this week!

Good Luck!

Peter
 
I trade forex for a hedge fund.

I believe 95% of forex traders lose money because they dont have a system. Hedge funds usually spend a lot of time doing testing and research, the traders are just there to execute the system.

Retail traders dont have the technology or effort or know-how to create systems.

If you are interested in my trades, go to my homepage.
 
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