Just wanted to make it clear | Forex Factory

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Just wanted to make it clear

  • #1
  • First Post: Edited 7:37am Feb 2, 2008 1:38am | Edited 7:37am

The statistic is actually.


95% of all traders fail in the first 6 months.

NOT


95% of all traders fail, lose or are unprofitable.

If you make it past 6 months, as a trader, your in a position that is better than 95% traders that started before you. You can truely pat yourselves on the back, at this point.

But it is totally false that 95% of all traders fail, as a whole. Because the ones who make it past 6 months usually have a lower dropout rate.

The second statistic is false data, and needs to be rectified, because i see a lot of people with ambition and passion coming across people promoting the latter statistic and giving up all hope, or dampening any hope they have.

just wanted to get that point across.

Cheers

Rusty.
  • #2
  • Feb 2, 2008 2:02am Feb 2, 2008 2:02am
Yep your point came over and whats more I agree with you. How's that cavet go? Past performance is no indication of future performce, or words to that effect. I do wish people would shout more about the need for money management when a person first begins trading. It's with hindsight that I realised that the study of money management should come before anything technical.

Cheers
Nut
  • #3
  • Feb 2, 2008 2:13am Feb 2, 2008 2:13am
Could you post a reference link to that fact?
  • #4
  • Feb 2, 2008 2:24am Feb 2, 2008 2:24am
http://www.hereinmaine.com/currency-trading/

under "system"
  • #5
  • Feb 2, 2008 2:34am Feb 2, 2008 2:34am
Quoting Rusty_forexman
http://www.hereinmaine.com/currency-trading/

under "system"
Thank You
  • #6
  • Feb 2, 2008 2:42am Feb 2, 2008 2:42am
The problem is there's no official census for this kind of information, so it's hard to gauge what kind of success / failure rates there are within a specific time period.
  • #7
  • Feb 2, 2008 3:39am Feb 2, 2008 3:39am
Quoting forexmoments
The problem is there's no official census for this kind of information, so it's hard to gauge what kind of success / failure rates there are within a specific time period.
well i think thats important to note also - cause it could very well be pure false statistics to work in anothers favour.

I really think if you were an ambitous trader you would do whatever it took, and would ignore these statistics regardless.
  • #8
  • Feb 2, 2008 7:03am Feb 2, 2008 7:03am
Before I started my AutoParts business, I applied for a SBA loan in the process of that loan app they sent me some helpful info about start a small business. In that info it stated that according to the Dept of Commerce 98% of all small businesses started in the USA are not in business after the second year.

As it turned out I rejected the loan, because the terms were to restrictive on on me and the reporting to the government was unbelievable.

I Started my business a bit undercapitalized and told myself that no matter what I was not going to quit. That was 23 years ago this April. I am now going to retire in May and my son will take over. It has been a great business and has paid for a couple of houses to boot.

Never believe what other people's stats tell you is possible.
  • #9
  • Last Post: Feb 2, 2008 7:17am Feb 2, 2008 7:17am
Quoting Rusty_forexman

The statistic is actually.


95% of all traders fail in the first 6 months.

NOT


95% of all traders fail, lose or are unprofitable.

If you make it past 6 months, as trader, your in a position that better than 95% traders that started before you. You can truely pat yourselves on the back, at this point.

But it is totally false that 95% of all traders fail, as a whole. Because the ones who make it past 6 months usually have a lower dropout rate.

The second statistic is false data, and needs to be rectified, because i see a lot of people with ambition and passion coming across people promoting the latter statistic and giving up all hope, or dampening any hope they have.

just wanted to get that point across.

Cheers

Rusty.
You could be right. It may be less than 95% for traders who get over the "initial hurdle". I imagine the percentage is still very high though.
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