Thread: 95% failure rate?

Is it a statistical fact the 95% of traders fail in this business, or is that just some myth made up by a company attempting frighten you into buying their merchandise?

Additionally if 95% do neglect andnigeriaforextradingconstitutes a little population of traders in the world, then would that produce only a hand full of us here successful?

Correct me in advanced if I am wrong I would like to disprove this myth when actually it's, thanks#8230;.

Joyful Trading

Originally Posted by ;

Hello,

It Isn't a myth.

Could you please point me in the ideal direction for the study that came up with this amount of 95%?

thanks

Hello,

I wouldn't ride the particular number of 95% - it is more appropriate to check at exactly what this number actually means in circumstance: the great majority of aspiring traders lose their top along the way.

However, as I mentioned in my previous message, this is common for many professions that just a relative small amount of people make it on the very top.

The distinction is that in trading - since it has become such a prevalent endeavour - it is more talked about than failures in different professions.

regards

Originally Posted by ;

Can you please point me in the ideal direction for the study that came up with this figure of 95 percent?

Thanks

I really doubt that there's a particular study.
If there were I'll bet it is similar to gt;99%.

However, nevertheless, as Daytrading states, it is no different
than anything else which people embark on with all the
intention of earning a career from it (music, art, writing,
the list could go on and on). There is likely to be a way
higher attrition rate than 95 percent.

As I'm writing this, on thenigeriaforextradinghome page, there are
3,367 Traders Online. Will more than 34 (1 percent ) stick
out it, work their asses off and become proficient?
You understand they won't. But will I? Can you?
That's what counts.

Here's to sticking it out for the long haul!

Another portion of this is that the low-entry barrier to trading. If you wanted to become a lawyer or doctor and finally make a 6 figure income every year, you have to pass a ton of gatekeepers beginning with your first four decades of university.

Then law or medical school gatekeepers make sure that only those which are academically suited enter the the school. Then during your years at the school, their are various tests that judge your emotional abilities to deal with the job along with your intellect.

Once you finish school, you know have to pass another gatekeeper, the licensing boards of every nation.

Once you've got your license, you finally have to join a law firm or hospital which usually means you've got to get by their gatekeepers.

Once you're in, at this point you have to bust your ass for years to make partner or get to the point where you are able to start your very own private practice.

The end result is that after 7-9 decades of universities and 5-7 decades of busting your ass for someone else and only then, will you always make a 6 figure income.

Now, let us consider trading Currency Market. What do you have to be a trader. A frigging computer and $500. Yet everyone thinks they'll be making a consistent 6 figure income in a month or two or even years. Forget how the industry is full of some very, very clever people who've spent years learning how to become a consistent trader. Forget how you are going up against organizations which have millions of dollars to throw behind their traders in the kind of service such as analysis and system testing. Forget the fact that the very same organizations are playing on another area then you're. All you will need is a couple of indiors, a broker which does not screw you too much, some money management and at a year or 2 you are going to be living the high-life.

Is it any wonder so many neglect?

Originally Posted by ;

What do you need to become a trader. A frigging computer and $500.

And at a year or two you'll be living the high-life.

Waaa! I am seriously laughing my bum off!

Great article (s).

Originally Posted by ;

The following portion of this is the low-entry barrier to trading. If you wanted to be a lawyer or doctor and finally make a 6 figure income every year, you have to pass a slew of gatekeepers beginning with your initial four years of college.

Then law or medical school gatekeepers ensure that only those which are academically suited input the school. Then their are various evaluations that judge your abilities to deal with the job alongside your intellect.

Once you finish school, you know have to pass the following gatekeeper, the licensing boards of each state.

Once you have your license, you finally have to combine a law firm or hospital which means you have to get by their own gatekeepers.

Once you're in, at this point you have to bust your ass for many years to make partner or get to the point where you can open your very own personal practice.

The final result is that after 7-9 years of universities and 5-7 years of busting your ass for somebody else and only then, will you always make a 6 figure income.

Today, let's consider trading Currency Market. What do you have to become a trader. A frigging computer and $500. Yet everyone thinks they'll be making a constant 6 figure income in a month or two or even years. Forget how the business is filled with some very, very intelligent men and women who've spent years studying how to be a constant trader. Forget how you are going up against businesses which have millions of dollars to throw behind their traders in the kind of service like analysis and system testing. Forget the fact that these very same associations are playing on another field then you are. All you need is a couple of indiors, a broker which does not screw you too much, some cash management and in a year or two you'll be living the high-life.

Is it any wonder so many fail?

Post of the year!

Originally Posted by ;

Is it a statistical fact the 95% of all traders fail in this business, or is that just some fantasy made up by some company trying scare you into buying their merchandise?

I really don't believe any person know the right amounts or where this 95% come from but when I was going to try a wild guess based on each of the small info I have been studying and selecting up on it over the years I will say maybe less then 0,5% are actually making more or less steady profit over the years in trading. 5 percent is most likely a much to large number. However, of course it is just a guess.
And yet another thing is when you say that 95% of all traders fail then I will ask what is a trader?
Is it a person which have a demo acc and therefore are posting a lot on the forums daily?
Or can it be a person which have been trading regularly some years on a live acc?
Or can it be something else?
One thing I believe everybody which have a little bit of expertise in trading may agree to is if you say that any person looking in to trading at some point ought to be included in such amounts and if we say this to be counted as successful you must be making profit (real money) at least two years in a row then there's absolutely no way as much as 5 percent are doing this.
Well... that's my view anyhow. . It's ok if others believe different.

Originally Posted by ;

Is it any wonder so many neglect?

Good post Dopey

The point of this figure is that it's extremely probable that a novice who begins to exchange will fail. And the rest are only trading till they blow off their account in a drunken orgy of market pursuing and revenge trading.

Originally Posted by ;

Can you please point me in the ideal direction for the analysis that came up with this amount of 95 percent?

Thanks

In 2 plus years of trading I have never discovered a real study that confirms that this 95/5 ratio. It may be like a lot of other common thoughts - 95 percent of those people repeat it because they heard 95 percent of those people repeat it.

The 5 percent figure does not just set a number on how many succeed. The 5 percent figure also informs us that the 5 percent believe quite differently than the rest. They gauge risk, reward, and effort, understand long term vs. short term analysis and see the essential need for preparation differently than the rest.

Persistence is of course essential, but it is not the only thing one wants to succeed in almost any field. I believe that a lot of people live under the myth that persistence is all you have to succeed.

You can be quite persistent in attempting to be like Tiger Woods, however if you are using a baseball bat to play golf you will surely be at the 95% who never make it to the tour. Forex traders will need to be truthful with themselves when an indior or EA or system or their trader psych is not working. Admit what does not work. Admit where you didn't work well. Study. Study. Make the necessary corrections. Stopping attempting to play golf.

Persistence personal honesty skilfull preparation = achievement


.