95% traders go broke, only 5% survive | Page 3 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Strategy behind 1 EA (buy only) and 1 EA (sell only) 2 replies

Script to change EA to long only/ short only at a price level? 1 reply

Myth Buster: 90-95% of traders cannot survive in trading 32 replies

Wouldn't it be good if during flat markets you only broke even on trades 4 replies

how can banks survive if all traders win 19 replies

Attachments: 95% traders go broke, only 5% survive
Exit Attachments

95% traders go broke, only 5% survive

  • #41
  • Jun 5, 2013 3:14am Jun 5, 2013 3:14am
Quoting Custos
{quote} Sorry, but that statement is wrong. In any other profession even the worst performing guy is making money, cause you will receive a paycheck at the end of the day. But in forex you can make and lose money. That's the difference, not that you get good training,... I think in any other profession we have an equal amount of outperformers (as in forex) who are just 99% better than their peers. Just that in those professions you don't see the difference that much, since nobody is losing money and everybody get s a paycheck at the end.

Truly agree with you. Even a good & well experienced trader won't make money during some trading days.

So forex is very uncertain business/job, etc
  • #42
  • Jun 5, 2013 3:51am Jun 5, 2013 3:51am
Quoting Custos
..... In any other profession even the worst performing guy is making money, cause you will receive a paycheck at the end of the day. But in forex you can make and lose money....
That is one of the most accurate and illuminating statements of simplistic fact which I have ever seen. Well stated.
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
  • #43
  • Jun 5, 2013 5:52am Jun 5, 2013 5:52am
Quoting PeterE
actually 95% is too low, the stat is closer to 99.6% an academic researchers findings show that only 0.4% of retailers are able to make 4 or more back-to-back profitable quarters you will be extremely hard pushed to find anyone at FF who has 4 back to back profitable quarters and using decent lot size, whilst employing sensible risk parameters of course many will tell you they can, but talk is cheap ..................but that doesnt mean one shouldn't try, for it can be...
you donīt need 4 profitable back-to-back quarters to be a profitable trader. hell, one single profitable quarter is enough to come out ahead at the end of the year, if you win big in spring and only lose small for the rest of the year.
  • #44
  • Jun 5, 2013 11:30pm Jun 5, 2013 11:30pm
Quoting Myo
{quote} you donīt need 4 profitable back-to-back quarters to be a profitable trader. hell, one single profitable quarter is enough to come out ahead at the end of the year, if you win big in spring and only lose small for the rest of the year.
The point is that only 0.4% of traders can make a profit AFTER 1 year of trading. That is what matters...

99.6% of RETAIL FOREX traders lose money long term (over 1 year of trading)...

So, despite how many consecutive quarters you have or if you make money in summer and lose it on winter, after 1 year of trading, 99.6% of traders lose money.
The Black Swan: The Impact of the Highly Improbable
  • #45
  • Jun 6, 2013 2:03am Jun 6, 2013 2:03am
Quoting MapleLeaf
{quote} The point is that only 0.4% of traders can make a profit AFTER 1 year of trading. That is what matters... 99.6% of RETAIL FOREX traders lose money long term (over 1 year of trading)... So, despite how many consecutive quarters you have or if you make money in summer and lose it on winter, after 1 year of trading, 99.6% of traders lose money.

actually 2% of day traders make it...less than 1% make good money.I think the stats for swing traders and trend-followers are much better at 25%.
wo-yoy! wo-yoy! wo-yoy! wo-yoi! wo-yoy-yoy-yoy!
  • #46
  • Jun 6, 2013 5:13am Jun 6, 2013 5:13am
Quoting MapleLeaf
{quote} The point is that only 0.4% of traders can make a profit AFTER 1 year of trading. That is what matters... 99.6% of RETAIL FOREX traders lose money long term (over 1 year of trading)... So, despite how many consecutive quarters you have or if you make money in summer and lose it on winter, after 1 year of trading, 99.6% of traders lose money.
Please show where it says that. I cannot read trade2win right now as they have blocked me & mr. formans blog seems a little unorganized. plus iīm lazy.
  • #47
  • Jun 6, 2013 5:15am Jun 6, 2013 5:15am
Quoting pemully
{quote} actually 2% of day traders make it...less than 1% make good money.I think the stats for swing traders and trend-followers are much better at 25%.
i doubt anybody ever did a study on forex daytraders (I would like to read it if it existed though). Anyway, this has been done with stocks, and the numbers are even worse.
  • #48
  • Jun 19, 2013 5:51am Jun 19, 2013 5:51am
The quantity of losing traders is indeed very much. Its because forex trading is not taught traditionally. We have to learn almost every thing by ourselves.
  • #49
  • Jun 19, 2013 6:44am Jun 19, 2013 6:44am
Quoting hedging
The quantity of losing traders is indeed very much. Its because forex trading is not taught traditionally. We have to learn almost every thing by ourselves.

We need to build our own successful method

Traditional methods or theoretical system won't wok
  • #50
  • Jun 19, 2013 1:17pm Jun 19, 2013 1:17pm
Where the heck is everyone getting their stats from..(95%, 99% etc), would love to know where the stats are coming from..
  • #51
  • Jun 21, 2013 4:09pm Jun 21, 2013 4:09pm
Quoting sandycarrot
in every internet forum we get a warning 95% traders go broke ,only 5% survive ,,but,, in every internet forum we see and hear this many people say they are profitable maybe about 98% only a few people who say that they failed maybe about 2% what do you think guys ? S.C.
most of the explorer systems on here now from what ive seen have a month of good trading and then start losing money.. these are the guys trying to teach trading to others... people are being trained to lose.. IMHO
aloeuscapital . com
  • #52
  • Jun 22, 2013 12:59am Jun 22, 2013 12:59am
Whatever these statistics which we get from different sources clearly indicates that the larger portion of the traders are going in the wrong direction because of poor knowledge and weak mindset while trading which leads to more and more losses.
  • #53
  • Jun 22, 2013 8:38am Jun 22, 2013 8:38am
They may have some mechanism so that most people don't get rich trading forex but to stay enslaved by the system run by the illuminati.

I'm not aware of such mechanism except once when I was gaining like 1000% on high leveraged position in ES (broker HotForex) and they raised margin by 10 times for ES (from $12 to $120) over night without warning email....

I was lucky I had enough cash so it did not auto-closed the positions but for others I don't know....I also wonder if I closed the position would I get the money...

Anyway I AM actually positive as IMO our main weapon is no trade....most of the time there should be no trade and than at the right moment BAM make a trade let it ride and next time risk all the market's money etc
  • #54
  • Jun 23, 2013 6:07pm Jun 23, 2013 6:07pm
Read some posts, not just on this thread. More than 90% of the people who post here haven't got a clue what they are doing. Forex Factory is full of learners (and that is a charitable description) and I'd be willing to bet more losers post here, as a percentage, than Forex traders generally. I'm sick of reading posts from people whining about brokers and market manipulation. They'll blame anyone but themselves. Even when they get the direction right they don't know how to manage a trade.

And they go broke not just because they can't trade, but also because they are under capitalised and don't understand that if they were to work hard, for 40 - 50 hours, and make say 5 trades in 1 week, and increase a $1,000.00 account by $10.00, that would be an outstanding result for a learner, because that is 1% in 1 week.

So get real. Stop blaming imaginary enemies. Do the work and know that it's going to take a long time to build that account into something worthwhile.

Let me put it another way. Flipping burgers is a better way of making money unless you have proper capital (and you won't have drawdown to endure in the bad times).
Gone to a better place
  • #55
  • Jun 23, 2013 6:29pm Jun 23, 2013 6:29pm
A lot of "traders" try it out and quit after a month
  • #56
  • Jun 24, 2013 12:34am Jun 24, 2013 12:34am
Quoting smikester
Read some posts, not just on this thread. More than 90% of the people who post here haven't got a clue what they are doing. Forex Factory is full of learners (and that is a charitable description) and I'd be willing to bet more losers post here, as a percentage, than Forex traders generally. I'm sick of reading posts from people whining about brokers and market manipulation. They'll blame anyone but themselves. Even when they get the direction right they don't know how to manage a trade. And they go broke not just because they can't trade, but also...
This is the truth, I believe. It took me a year or two to realize that most of the people complaining about their brokers were actually complaining about their own losses. One aspect which does not help is the limelight given to successful traders in the competitions run by some brokers. The top performers make 200% in a month; the ancillary truth to this is that those traders never re-appear in the top performers lists.

Consistently making 1% in a week is a good result.
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
  • #57
  • Jun 24, 2013 5:41pm Jun 24, 2013 5:41pm
It would have been great if some of the so called stats posted here were backed up with real time data..moving on, a lot of traders do join the market in the hopes of making money, fair enough. But when it comes to actual trading, they often fail due to lack of application..
  • #58
  • Jun 25, 2013 12:24am Jun 25, 2013 12:24am
Switch to longer Time frame weekly and monthly and reduce your leverage and position size and you will make money.
Trade without Stop loss which is basically fuel for brokers.
I'll give you an example.
Currency A has 2k range.Price is on upper 25% range and probability of reversing the trend is increasing by every 50pips.
You enter short .50C on 5k account.Now price technically can't go against you sufficiently to blow your account hence you can seat and wait until in profit even if in short term you are in the red.
Trend goes in your favor you add another short 50c and now you got 1 short in profits,stop moved to BE and wait for 2nd to be in profit.
In a week or two or less you could be in 300dollar in profit.May not seem much but do the math and compounding and you will become successful trader.
What kills traders is high leverage,over blown large positions not in according to account size,and frequent trades on short term TF with stops which only contribute more losses.
I stopped trading anything less then daily and my account went up significantly..
I trade with no indicators other then simple 200MA as reference or floating S/R
That's it guys.Why is this difficult?Because most traders have no patience!!Think about that.
In trading, you have to be defensive and aggressive at the same time
  • #59
  • Jun 25, 2013 2:03am Jun 25, 2013 2:03am
Quoting Davit
Switch to longer Time frame weekly and monthly and reduce your leverage and position size and you will make money. Trade without Stop loss which is basically fuel for brokers. I'll give you an example. ....... you add another short 50c and now you got 1 short in profits,stop moved to BE .......
Well..... either you are trading with SL or you are not using SL. I think you meant to apply SL at BE when you open your second position.
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
  • #60
  • Jun 25, 2013 8:19am Jun 25, 2013 8:19am
Quoting Exodus
{quote} Well..... either you are trading with SL or you are not using SL. I think you meant to apply SL at BE when you open your second position.

That is correct SL is only used once order is in profit to break even or protect the profits.I don't use SL on my initial orders.
Point I was making is it is highly possible to be profitable in forex but one must take into account certain basic fundamentals and range of given currency.
People who use multiple lagging indicators mostly struggle because they don't account the randomness factor in forex.
I think of forex as a battle.If you are too close then you don't see the big picture,what looks like lot of soldiers attacking could be just a small unit.
Once you move away from the action then picture becomes lot more clear.
REgards
In trading, you have to be defensive and aggressive at the same time
0 traders viewing now