WARNING: 90% Of Retail Traders Lose, What Are You Made Of? Are You A Shark?

CitySharks

Newbie
4 0
The truth is that 90% of retail traders lose money and only 10% of traders make a profit and see any green. So statistically from a narrow and negative point of view your chances of success are slim at best.

But as with most things in life with a different and more positive perspective towards the task of creating wealth through online trading it’s entirely achievable.

Firstly why is it that you wish to trade and obtain money? This question is key as it will affect the core of your entire being. What separates winners from losers is often intent. Intent will give you the energy to persevere and learn from your mistakes rather than feel sorry for yourself.

Once you have clarity and believe in your purpose the rest is plain sailing. The majority of people in life say they want to win but have no real intent on making success happen. These kind of people secretly deep down just wish to please their family and friends and have to no real desire and ambition to succeed, they like to follow the herd instead of thinking of their own happiness and desires. They will never walk with the gods.

An open mind filled with positive intent will learn much faster than a closed mind expecting a negative outcome. We are not all born equal and the same can be said of the desire to win.

Listen and have belief in yourself and you will be in that 10% bracket making a profit. Ask yourself if you really want it, I mean really want it, if not walk away and stop filling your head with daydreams.

Money comes from success and to those who deserve it, which means you have to work for it. You should understand that success boosts self esteem and confidence not money. Money is simply the reward we get for our efforts.
Money does not buy that house, car or designer wardroom it’s success that does. Think about it? Success equals money not the other way around.

Most traders fail as they take far too much risk as they never think to consider this and make decisions based purely on the desire for money becoming gamblers rather than traders.

Desire the trappings of success and the great life success can bring and detach yourself from money. To survive in a game that’s all about the money it’s a good idea not too worship it too much.
 
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trendie

Legendary member
6,213 1,000
On the face of it, thats a good post.
But, all the "believing", "deservedness", "positive intent" and "open-mindedness" is no substitute for some conception of the underlying market structure, and a viable trading plan with a quantifiable edge.
And some nerves of steel wouldnt go amiss.

For some reason, I thought your post had the undercurrent of "law of attraction" about it.
 

dbphoenix

Legendary member
6,952 1,244
Your need intent to create one through...
Doing and intending to do are quite different things. To suggest that clarity and belief result in "plain sailing" is nonsense. New Age philosophies don't count for much in trading.

Db
 

zaysev36

Well-known member
421 15
So, you basically say that guys who randomly trades usually lose and those few who trade using analyzis and statistics - usually win. Big deal?
 

TexasRangersFan

Active member
185 47
I have always heard that 80 percent of the people that trade futures lose money, 10 percent break even and 10 percent make the money that the other 80 percent lose.

I wish there was a chart that broke down the 10 percent that make money.
Someone is making big money along the way.
 

dbphoenix

Legendary member
6,952 1,244
I have always heard that 80 percent of the people that trade futures lose money, 10 percent break even and 10 percent make the money that the other 80 percent lose.

I wish there was a chart that broke down the 10 percent that make money.
Someone is making big money along the way.
The findings of the studies that have been done regarding this sort of thing have been remarkably consistent. In a nutshell, those who take it seriously succeed and those who don't, don't. If you're interested, google the studies of Barber and Odean, the most recent being 2010. You may also want to look up Cory Mitchell.

Then there is this:

The proportion of commercial failures due to Lack of Capital or Incompetence is about 60 per cent. Call the former by its Wall Street cognomen — Overtrading — and the percentage of stock market disasters traceable thereto would be about 90.

That was written by Richard Wyckoff. In 1909.

Db
 

tomorton

Legendary member
7,312 976
The article's OK, but can only go into limited depth in a short web piece. For more, Mark Douglas covered the psychological basis for traders so well in his well known books.

My own two-penn'orth's worth on this is that the majority of the majority who fail never wanted to be traders anyway. Yes, they wanted to start trading in order to make money, but with no intent to be traders the rest of their lives. Their mission statement would have read: learn totrade, make a lot of money in a year or two or at the most five, and then stop trading for ever.

To me, they were never going to be traders, they shouldn't be counted as such in any statistics about 80% or 90% of traders failing. I'm not surprised so many of this group fail. Its a shame the vocabulary of our field hasn't got the right term for these guys yet.
 

Forexmospherian

Legendary member
39,928 3,299
The article's OK, but can only go into limited depth in a short web piece. For more, Mark Douglas covered the psychological basis for traders so well in his well known books.

My own two-penn'orth's worth on this is that the majority of the majority who fail never wanted to be traders anyway. Yes, they wanted to start trading in order to make money, but with no intent to be traders the rest of their lives. Their mission statement would have read: learn totrade, make a lot of money in a year or two or at the most five, and then stop trading for ever.

To me, they were never going to be traders, they shouldn't be counted as such in any statistics about 80% or 90% of traders failing. I'm not surprised so many of this group fail. Its a shame the vocabulary of our field hasn't got the right term for these guys yet.

Hi Tom

Maybe a good name for this group would be - "Chancers"

I totally agree with you about the rubbish you hear about FX and the industry

All depends who paying for the survey and what they want to get over - or "spin"

For example - the brokers want us to believe anything from 25 to 35% of FX traders make money

Losers - some vendors even - and some of the trade want to get it out it's only between 1% and 10% that are successful and become consistently profitable

Similar with the number of world wide retail FX traders - it ranges from half a million to 3 million

So lets say 5% are profitable FX traders - just as a conservative estimate covering the whole world ( not one country or just housewives etc etc ) then that means between 25000 and 150,000 traders are consistently profitable

Forget the 400000 or 2 million plus trader who never really get there - as you say maybe 80% of those guys are just "chancers" and maybe the odd 1 gets through a year or two and finds out hes got a natural ability to make money trading - it does happen - but then 99% of the other "chancers" will just slowly give up - and there is nothing wrong with that at all


Regards


F
 
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Fugazsy

Veteren member
3,661 677
Most will lose because instead of investing in themselves are constantly searching some kind of magic somewhere else.

Only a few will go deep down where it hurts to deal with the nitty gritty and when they come out of it they will be payed for the inconvenience.

The rest will choose the apparent easy way which will turned in the not way at all.
 
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dbphoenix

Legendary member
6,952 1,244
The article's OK, but can only go into limited depth in a short web piece. For more, Mark Douglas covered the psychological basis for traders so well in his well known books.

My own two-penn'orth's worth on this is that the majority of the majority who fail never wanted to be traders anyway. Yes, they wanted to start trading in order to make money, but with no intent to be traders the rest of their lives. Their mission statement would have read: learn totrade, make a lot of money in a year or two or at the most five, and then stop trading for ever.

To me, they were never going to be traders, they shouldn't be counted as such in any statistics about 80% or 90% of traders failing. I'm not surprised so many of this group fail. Its a shame the vocabulary of our field hasn't got the right term for these guys yet.
On the other hand, if one doesn't count them, then an even more warped outlook for success prevails, and it's warped enough as it is. AFAIC, the numbers speak for themselves.

Db
 

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