90% of traders lose money , is it even true ??

Attila the trader

Attila the trader

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One thing that gets tossed around very often in the trading community is that 90% (or 80 or 95!) of traders (specially beginners) lose capital , how much of it is true or everybody is saying that because they heard it from somebody else ?
 
Unfortunately, it is not a secret for all the newcomers. To trade and earn good on it is not enough just to invest. It is necessary to think over the trading process.
 
A few years back some US brokerage surveyed their day-trading clients' accounts and realised that 90% of them lost 90% of their funds in their first 90 days of trading.

I've never seen the original survey data so its possible the story wasn't originally 90% - they just meant the great majority.

From what I've seen I am sure the great majority of traders lose the great majority of their money while they are still new to trading.
 
attila low said:
One thing that gets tossed around very often in the trading community is that 90% (or 80 or 95!) of traders (specially beginners) lose capital , how much of it is true or everybody is saying that because they heard it from somebody else ?
Click to expand...

just look at the CMC advert next to your post - 78% of their retail clients lose. This is about what most report (a legal requirement now).
 
tomorton said:
A few years back some US brokerage surveyed their day-trading clients' accounts and realised that 90% of them lost 90% of their funds in their first 90 days of trading.

I've never seen the original survey data so its possible the story wasn't originally 90% - they just meant the great majority.

From what I've seen I am sure the great majority of traders lose the great majority of their money while they are still new to trading.
Click to expand...
One survey which I saw, a few years back, was from the head of Forex trading at one of the big American banks. He analysed the accounts of their 100 most successful clients. The statistic, which I found a bit surprising, was that only one out of that 100 was a day trader. Definitely food for thought there.
 
barjon said:
just look at the CMC advert next to your post - 78% of their retail clients lose. This is about what most report (a legal requirement now).
Click to expand...
Yeah, I think all brokers have to do it.

The few I have seen are around the 75-80% level - which are not good odds
 
alan5616 said:
One survey which I saw, a few years back, was from the head of Forex trading at one of the big American banks. He analysed the accounts of their 100 most successful clients. The statistic, which I found a bit surprising, was that only one out of that 100 was a day trader. Definitely food for thought there.
Click to expand...
It has been my experience that day trading is the hardest way to trade. Especially using leverage. If I were to try it again someday I would probably only do it where I can pay for the underlying with 100% cash.

Many times I got the direction right but had to exit when the closing bell came. The following day the market continued in my direction but of course I was out from the previous day which is where day trading gets its name from. 🙂

FWIW I think that if someone has to go that route then day trading stock index futures is easier than individual stocks.
 
J Livermore said:
It has been my experience that day trading is the hardest way to trade. Especially using leverage. If I were to try it again someday I would probably only do it where I can pay for the underlying with 100% cash.

Many times I got the direction right but had to exit when the closing bell came. The following day the market continued in my direction but of course I was out from the previous day which is where day trading gets its name from. 🙂

FWIW I think that if someone has to go that route then day trading stock index futures is easier than individual stocks.
Click to expand...

I too find day trading to be the hardest.
At least in FX trading anyway.
But I am not a quick thinker, and watching every little move on the chart makes me twitchy and impulsive.

On the other hand, I'm sure there are people out there that find day trading easier than swing trading.

I think most people that enter the realm of trading are drawn towards the narrative of fast paced action, the risk, and making a fortune - these are essentially gamblers.

Trading and gambling have a lot of similarities, but in my opinion they are not the same.

I trade, but I dont consider myself to be gambling.
You can either gamble on the market, or you can trade it/invest in it.

The distinction I draw between the two is that one has:
- More research
- Developed plans
- Self-control
- Understands more about themselves

The other is the polar opposite and leaves far more than they should up to chance.... which is what makes it gambling IMO
 
Last edited:
Nowler said:
I too find day trading to be the hardest.
At least in FX trading anyway.
But I am not a quick thinker, and watching every little move on the chart makes me twitchy and impulsive.

On the other hand, I'm sure there are people out there that find day trading easier than swing trading.

I think most people that enter the realm of trading are drawn towards the narrative of fast paced action, the risk, and making a fortune - these are essentially gamblers.

Trading and gambling have a lot of similarities, but in my opinion they are not the same.

I trade, but I dont consider myself to be gambling.
You can either gamble on the market, or you can trade it/invest in it.

The distinction I draw between the two is that one has:
- More research
- Developed plans
- Self-control
- Understands more about themselves

The other is the polar opposite and leaves far more than they should up to chance.... which is what makes it gambling IMO
Click to expand...
You're right about trading and gambling being closely associated. I day traded for many years and, it is the most nerve racking method of trading. You step away from the screen, to make a cup of coffee, and return to find that there's been a good move that you could have been on.

If I ever considered going back to day trading, I would be a scalper. A friend of mine aims to take just 13 points a day from trading the DAX. He's made a good living, from this strategy, for the past 10 years. By not being greedy, he has been successful.
 
barjon said:
just look at the CMC advert next to your post - 78% of their retail clients lose. This is about what most report (a legal requirement now).
Click to expand...
You should go with spreadex only 69% of their traders lose money, it must be a better trading platform. 😆
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Nowler said:
I too find day trading to be the hardest.
At least in FX trading anyway.
But I am not a quick thinker, and watching every little move on the chart makes me twitchy and impulsive.

On the other hand, I'm sure there are people out there that find day trading easier than swing trading.

I think most people that enter the realm of trading are drawn towards the narrative of fast paced action, the risk, and making a fortune - these are essentially gamblers.

Trading and gambling have a lot of similarities, but in my opinion they are not the same.

I trade, but I dont consider myself to be gambling.
You can either gamble on the market, or you can trade it/invest in it.

The distinction I draw between the two is that one has:
- More research
- Developed plans
- Self-control
- Understands more about themselves

The other is the polar opposite and leaves far more than they should up to chance.... which is what makes it gambling IMO
Click to expand...
i just dont have the luxury to day trade , the time , commitment, good enough internet connection ,a non lagging pc !
 
It's not the provider's fault.
People are reluctant to reveal their best moves as it could worsen their own chances if too many do it.
 
Most of the tradedrs especially newcomers lose trades and their capital very quickly because lack of knowldge and skills, they do not want learn but want to become rich very fast through Forex trading. Most of them start real trading without practicing over demo account and i think it is the biggeest mistake they do.
 
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