95% traders go broke, only 5% survive | Page 23 | Forex Factory

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95% traders go broke, only 5% survive

  • #441
  • Jun 29, 2014 7:29pm Jun 29, 2014 7:29pm
Quoting yeniful
I don't believe in 5% profit. I am up almost 1,000 trading in my first month back at forex. I attempted forex trading two years ago and lost a lot but learned quite a bit from my losses. The two most important things I learned is to not enter a trade without enough margin where a big swing could liquidate your trade...talking about when big news comes out where some currencies go up and down almost 100 pips in the flash of a second. Another important thing I learned is to be patient. I can't tell you how many times I have exited trades and lost...
The two rules of thumb for lot size are: (1) individual positions <1 times equity; (2) total exposure of all positions <10 times equity. I have never encountered a margin call and the subsequent liquidation of positions while adhering to these rules. Like anyone else, though, I frequently violate these rules, but I don't go overboard. If my exposure is at 20 times equity, I start to worry. I naturally want to trade without having to think about all the open positions I've got 24-7; I rarely experience this worry when my total exposure is less than 10 x equity. This is not very aggressive, but then again, I don't have to prepare for a shock every time I open my trading platform.

As far as patience is concerned, it is the most difficult skill to learn. With a trade that's in the money, I don't practice so much as patience as a common-sense approach: (1) move the stop to break-even; (2) take some money off the table by dropping a portion of your position and locking in your gains; and (3) let the rest ride to your predetermined target. Even if the trade doesn't hit your target price at that point, you've gotten something out of it and are none the worse for wear since at that point the trade is a break-even proposition and you're playing with house money.

I have never looked at profit targets from a percentage perspective. Rather, I look at the pair's range for (usually) the day, and set a reasonable price target on that basis. Naturally, if the range is something ridiculously small like twenty pips, I probably pass on trading that pair entirely; it's just not worth piddling with. I can imagine situations in which a 5% TP is unreasonable given the pair's range or, at the other extreme, cuts short additional profits because the pair has a greater range to it.
Fireworks are fun ... as long as you don't blow your fingers off.
  • #442
  • Jun 30, 2014 4:36pm Jun 30, 2014 4:36pm
Hey guys,

I am one of those traders who are currently trading on a 500 dollars micro account and getting back into it. In 2013, I was brand new and lost $250 dollars and pulled out of forex immediately to save half my account and to give myself sometime to do some more reading and to decide a trading style that works for me. I just started back in June and learned to minimize my risks by trading 1000:1000:5000 lot sizes depending on the volatility of the market. Although I'm not making alot of money, 1 dollar here and 2 dollars here and there adds up over time. As of right now, I dont care how much money I make as long I am consistent. I'm hoping to still be here for another month and hopefully increase my equity by another 4.8%. Here's my progression this month.
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  • #443
  • Jul 23, 2014 10:57pm Jul 23, 2014 10:57pm
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.
Because people only brag if they are good , they never come out and admit they lose.So consider that those few that you see braging, there are 10x more who dont come out public and are ashamed as they lose their money.

The 99% loser / 1% winner ratio is very real
"There's a sucker born every minute" - P.T. Barnum
  • #444
  • Aug 15, 2014 6:07pm Aug 15, 2014 6:07pm
Quoting Proximus
{quote} Because people only brag if they are good , they never come out and admit they lose.So consider that those few that you see braging, there are 10x more who dont come out public and are ashamed as they lose their money. The 99% loser / 1% winner ratio is very real
How would u be able to tell if someone is good then?
  • #445
  • Aug 15, 2014 6:11pm Aug 15, 2014 6:11pm
Many told me FX trading is very risky, and some told me that i can do just fine when do it right... and the 95% Vs. 5% ... I don't know. I guess i am here to learn and find out...
  • #446
  • Aug 16, 2014 4:28pm Aug 16, 2014 4:28pm
If you don't know what you're doing, then it's no different than leaving your money on the sidewalk and walk away. Might as well do that, it might help someone in need.
  • #447
  • Jun 5, 2020 4:57pm Jun 5, 2020 4:57pm
for bigenner where i start from
is oanda good platform because i hav thinkorswim it lets use for froex
  • #448
  • Jun 6, 2020 4:17am Jun 6, 2020 4:17am
Quoting mrjose
Many told me FX trading is very risky, and some told me that i can do just fine when do it right... and the 95% Vs. 5% ... I don't know. I guess i am here to learn and find out...
Different opinions based on who you ask. Ask someone has suffered a loss they'd primarily focus on how risky the whole business is. Ask someone who has made a consistent profit and they'd tell how it's a wonderful way to earn.
  • #449
  • Sep 26, 2020 7:15am Sep 26, 2020 7:15am
Quoting Deepak.Dubey
{quote} Different opinions based on who you ask. Ask someone has suffered a loss they'd primarily focus on how risky the whole business is. Ask someone who has made a consistent profit and they'd tell how it's a wonderful way to earn.
That's a good idea. I can say many are failing and few are profiting.
  • #450
  • Sep 26, 2020 9:23am Sep 26, 2020 9:23am
Anyone who is currently making a consistent profit has had a period of losing though. It's a normal part of the learning process.
  • #451
  • Sep 27, 2020 2:14am Sep 27, 2020 2:14am
Yes only 5% trade make regular profits because others do not follow any strict rules. They are not discipline enough to make consistent money. Even if they have some rules they can't stick to it.
  • #452
  • Sep 27, 2020 3:39am Sep 27, 2020 3:39am
This is true of 95% of people losers and 5% of people profitable in trading. But 95% of people have a reason to be a loser. They never focus on learning but focus on earning money. First, you have to learn then you have to focus on making a profit in trading. If trading is planned, then that figure will change.
  • #453
  • Sep 27, 2020 7:03am Sep 27, 2020 7:03am
95% of winners and the rest are losses. In my opinion, the reality will be very much wrong because no one can prove the figures have been confirmed
  • #454
  • Sep 27, 2020 1:56pm Sep 27, 2020 1:56pm
of the 5%, only 1% probably make over $10k a year.
Love to talk on Discord: DividendGamer#1324
  • #455
  • Sep 28, 2020 2:41am Sep 28, 2020 2:41am
Quoting Varkeer
of the 5%, only 1% probably make over $10k a year.
Useless claim. To estimate performance it's much better to "normalise performance" by taking relative returns. I think less than 5% make 100% return a year. I should also note that performance does depend on a broker and quality of platform. For example testing EA with Exness I made 5% monthly while in Hotforex it was 7.9% with roughly same spread conditions. What I want to say that there is unobvious part in trading which can be sometimes revealed when we make comparisons.
  • #456
  • Last Post: Sep 28, 2020 5:16pm Sep 28, 2020 5:16pm
Quoting bottomhigh
{quote} Useless claim. To estimate performance it's much better to "normalise performance" by taking relative returns. I think less than 5% make 100% return a year. I should also note that performance does depend on a broker and quality of platform. For example testing EA with Exness I made 5% monthly while in Hotforex it was 7.9% with roughly same spread conditions. What I want to say that there is unobvious part in trading which can be sometimes revealed when we make comparisons.
Before you try to denigrate me you should at least be able to make more than that per month. Pathetic.
Love to talk on Discord: DividendGamer#1324
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