Ari.Gorian
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If the failure rate is so high (90-95%) why is trading so popular? It seems like providing service or products for traders has a higher chance of profitability. Any thoughts on this?
Why are people attracted to trading?
- Thread starter Ari.Gorian
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Barramundi
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I dropped into the local casino last night for a coffee and a look see. I suspect the failure rate there is even closer to 100%, but the place was chockers. I suspect many are attracted for similar reasons.
As for the failure rate, even if you tell an aspiring trader that 90% of traders fail, most will assume that they will be in the 10% that make it. It would seem logical to assume that by being aware of the boo boos that many traders make, you can easily avoid them and hence be profitable from the very beginning. In reality, most will be destined to repeat them.
I've no idea what the success rate is for service providers, but unlike trading, I doubt that there is a positive correlation between the quality of the work and the success rate, especially in the education & signal provider areas.
donaldduke
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You are correct, there are more people making a living snakeoil vending to traders than there are traders making a living by trading.
I started a thread on this subject about a month ago, you can find some of my thoughts on the subject there:
http://www.trade2win.com/boards/gen...all-failed-traders-should-become-vendors.html
trader-john
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Why! Because it is a chance to get rich fast and easy and everyone is trying to make this. :idea:
trader-john
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Agree. Doing nothing and getting reach. That's way lotteries and casino are so popular. Because they offer heaven for a quarter. That's is also a reason why people are scamed so often. Because people like to believe in what they want to believe
brewski1984
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money won for nothing seems to give a far better feeling than money earnt.
Wile E Trader
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I was thinking this very point the other day their is a lot of money in providing traders with education and tools and less risk I feel.
But being able to trade profitible does have a good feeling about it and the possibility that you may earn £££'s one day.
donaldduke
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50 pips @ £10 a pip in one day
or
$1 intra day move in any stock with a 1000 shares on.
Either of those is more money than 99% of the population earn in a day.
Goes without saying a lot of people going to be attracted by the prospect of making that kind of money.
After a while people realise it isnt as easy as it looks... most quit, some stick with it, others become vendors and make thier £500 a day that way instead.
or
$1 intra day move in any stock with a 1000 shares on.
Either of those is more money than 99% of the population earn in a day.
Goes without saying a lot of people going to be attracted by the prospect of making that kind of money.
After a while people realise it isnt as easy as it looks... most quit, some stick with it, others become vendors and make thier £500 a day that way instead.
neil
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But you are right.....the number of numb nuts who cannot be bothered to read widely but expect people to give them the grail of riches within a few questions beggars belief; yet is demonstrated on this site time and again. The O.P. clearly has not read the basics before posting here. It takes time, study and practice before one stands a chance of success. The lazy approach, whether hoping to buy signals, systems etc will fail. But I (maybe others also) are tired of posting these warnings since it doesn't stop the shoals of "get rich quick without effort" numb nuts from washing up on the shores of T2W etc. etc.............Oh sod it! I've lost the will to live.:whistling
Masquerade
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Money. Next question?
>> If the failure rate is so high (90-95%) why is trading so popular?
I would question if this is a high failure rate. I have no data on this, but I bet it would reflect pretty much the failure rate of any human endeavour that requires one to fully stand on their own feet. Take for example dieting. I'm surrounded by people that make these new years resolutions about losing weight but are never disciplined enough to follow through to their goals. Constantly on the weight merry go round (as soon as it's almost lost, something sets them back etc..) Blaming the diet, or not having the right diet or right exercise machine (this is all akin to trading systems or blaming the job for not having enough time, or it's hard to find healthy food etc...
>> It seems like providing service or products for traders has a higher chance of profitability. Any thoughts on this?
I would hazzard to guess that many have failed at this too, like any business. Trading is a business and should be no different. But being a business that is very easy to setup (just deposit money into an account), as opposed to a Pizza shop that requires more setup work/money/time/hire staff etc.. it's easier for someone to tip toe into and out of it. One cannot say, "I want to start a Pizza shop", and be in business by the end of the week, then decide to shut down shop the following week because they didn't sell much pizza (aka they had 3 losing trades in a row)...
I would question if this is a high failure rate. I have no data on this, but I bet it would reflect pretty much the failure rate of any human endeavour that requires one to fully stand on their own feet. Take for example dieting. I'm surrounded by people that make these new years resolutions about losing weight but are never disciplined enough to follow through to their goals. Constantly on the weight merry go round (as soon as it's almost lost, something sets them back etc..) Blaming the diet, or not having the right diet or right exercise machine (this is all akin to trading systems
or blaming the job for not having enough time, or it's hard to find healthy food etc... >> It seems like providing service or products for traders has a higher chance of profitability. Any thoughts on this?
I would hazzard to guess that many have failed at this too, like any business. Trading is a business and should be no different. But being a business that is very easy to setup (just deposit money into an account), as opposed to a Pizza shop that requires more setup work/money/time/hire staff etc.. it's easier for someone to tip toe into and out of it. One cannot say, "I want to start a Pizza shop", and be in business by the end of the week, then decide to shut down shop the following week because they didn't sell much pizza (aka they had 3 losing trades in a row)...
donaldduke
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Beginners luck exists in the business.
So even beginners have up periods on their way to blowing up their accounts.
Because people believe that it is something that they can do. Brokers and SB companies have brought the means of doing this into the homes of everyone who has a computer.
Even when losing money they, still, believe that success is within their grasp. They do not believe that no skill is necessary or that they are demeaning themselves in the same way as putting their money on a horse or a lottery ticket.
In many cases more time is spent searching for a system, or plan, than trading. That is very apparent by the work produced on this and other websites.
This is a human trait. I'm not knocking anyone, I am one of you.
Even when losing money they, still, believe that success is within their grasp. They do not believe that no skill is necessary or that they are demeaning themselves in the same way as putting their money on a horse or a lottery ticket.
In many cases more time is spent searching for a system, or plan, than trading. That is very apparent by the work produced on this and other websites.
This is a human trait. I'm not knocking anyone, I am one of you.
