95% failure rate?

Agreed.

In my humble opinion, trading skills are more about having proper mindset than having a good strategy.

If you don't have the right mentality, the strategy would not work for you even if it worked for other people.

But the problem is, most newbies don't see this point until they go through the hard way and hurt themselves a few times first.

Failure rate doesn’t matter. Matter is why traders have been failing. According to me, beginners trader fail after passing sometimes in live account because they have no trading discipline and always trade with emotions as well try to take revenge after having a loss. And some experience traders lose due to their overconfident. Practically there is nothing 100% in Forex .

I've heard numbers for failure rate running from 80% to 99%. The big reason for failing is trying to trade real money without having the skills. When that happens, the account busts and the traders give up. Some have given up after trading demo, but I wouldn't call that a failure.

Most traders (usually retail) are not good enough to make consistent profit from the market.

You will have difficulty finding a retail trader with a record of years of consistent profit, verified with P&L. They might exist but they are really rare.

If you wanna challenge the statistics, feel free to do unbiased statistical tests on traders here or irw.

its really not a myth. all traders lose at the beginning when they are still learning. some put in the effort for getting a proper education and start becoming profitable after a while and the rest will keep losing until they give up trying.


the thing is, most people think just because 90% of traders lose, if you place your trades opposite of a losing trader, you will win. that is not necessarily true. winning and losing mostly comes down to 3 specific elements of each trade.

1- where on the chart the trade has been placed and in which direction.

2- where is the stop loss

3- where is the take profit

I'm taking psychological elements of trading out of the equation for the sake of this argument.


a trade can lose, due to any of the 3 mentioned elements.
of course if you get the direction wrong, you will most likely lose. but you might still lose even if you get the placing and direction right, due to choosing a too tight of a stop loss on your trade. you might even choose the right direction and place for the trade, and choose a good stop loss and still lose because your target was too big to be hit.


so its not like if anyone is a losing trader, you can just do the opposite of what they are doing and become a winner!



hope this helps you in understanding the core problem better.

Newcomers can make profit with great consistency from Fx trading if they can use their trading strategies with real money managing plan.

Most traders lose their money because of their wrong trading plan and choosing the wring strategy.

Brokers are also a reason why people lose money. There is a lot of unethical advertising out there, creating unrealistic expectations.

True. Most of the scam brokers are showing unethical advertising like guaranteed profit like 200% to attract trader.

I have read that 71% of retail traders fail with their trades and 95% of forex traders drop out within the first few years.

its a nice message you have share among us , but i thing is some doubt that drop out rate 95% with 5 years , because i think within 1 year majority drop out from this trading place. and overall 70 to 80% percent retail traders fail.

actually statistic is not a big deal because there is no authorize financial company inn this market place who has the real data about failing and success ratio , so sometimes i think its all about a bullshit. nothing without it,

right now traders never loss like before because lots of option right now and traders have many option , PAAM services is more appropriate for any investor.

The most common mistake done by maximum trader is to choose the wrong broker from this market.

its very common mistake , because almost thousands brokers are available in this market place and most of them are found to be scam.

While there are plenty of scammers, there are also plenty of licensed companies, it's important to make sure you work with a licensed one.

It is because most traders are so much obsessed with the thinking of making money that they forget the most fundamental thing which is knowledge and understanding about forex and online broker.

you can normally find the stats from brokers websites.. ig.com mention 76 % fail with them // fx pro mention 80.52 % with them

failing rate actually which organisation make sure , i dont know actually , generally we the traders always try to bring profit with no learning and fall a great trouble.

it made by Forex forum , i have never seen any
Fx foundation who is a organize and make this statistic .