The Journey of a Trader

[analyst75 12]

Why 95% of traders fail?

In this post, we will discuss the trader's road to success and why most of the traders give up at the halfway point.

 

On the chart, I was trying to portray the journey of a trader:

most of the traders start this game with gambling.

They randomly buy and sell the market relying on their intuition and with a high degree of probability end up with nice cush.💰

 

However, as they proceed they realize that the profits that they made were the product of luck, not skill. 🍀

The more they trade, the less they win.

At some moment losing trades start to outperform winners.

 

Trying different things, jumping from one strategy to another, one comes to the conclusion that nothing seems to work.🙅‍♂️

He goes broke, he is panicking.

At that stage, the majority blame the market for their failure.

Forex, stocks, gold trading is complete scam.

Making profits on the market is not possible.

They give up and leave.👣

 

Only 5% are persistent. Only 5% are blaming themselves not the market for their failure.

They start following a strict trading plan, they follow risk management recommendations of pro traders and at some moment they start making 0.📝

Buying and selling the market, at the end of the day, they don't lose anymore.

That is the most important milestone in a trader's journey.

 

Realizing that the one stopped losing, a trader starts polishing and improving his rules in order to achieve better results.

He trains and works with his psyche.💪

 

After years of struggling, one finally contemplates a consistent account growth.

He became a pro trader.🏆

 

I wish you to be persistent, traders and don't give up.

 

Patience pay and at the end of the day winners win: https://www.tradingview.com/chart/BTCUSD/ZmLTunDW-The-Journey-of-a-Trader/?utm_source=Weekly&utm_medium=email&utm_campaign=TradingView+Weekly+151+%28EN%29

 

 

Profits from games of knowledge: https://www.predictmag.com/ 

[fxeconomist 11]

Why only 5%? According to Hotforex around 20% of traders are winning. I think it depends a lot on broker and its services. 

[aimhi 10]

Success mostly depends on the traders skills and broker contribution is also required as they usually are those who provides all the necessary tools to initiate trading in the forex markets.

[zdo 20]

Quote

Why only 5%? According to Hotforex around 20% of traders are winning. I think it depends a lot on broker and its services. 

 

 

 

Pareto of a Pareto Theory:  Every trader is a member of one of the 3 distinct groups of traders.  The groups -

Losing Losers - comprise about 78% of the population of traders...

Surviving Survivors -  comprise about 19% of the population of traders...

Thriving Thrivers -  comprise about 3% of the population of traders...

 

Analyst75 is throwing out an estimate of 5%  for the % of traders who are losers who persist and cross over the cusp from failing group to the surviving group

Hotforex is throwing out that 20 % number because that is about the % of accounts that stay open / active/ surviving ...  right in line with % of the population of traders who are not in the Losing Losers group in the theory above.

...Everybody’s got their own ‘inner statistics’ ... Everybody’s got their own ways of (mis)reading 'statistics’

 

And btw, fxecon and  aimhi, success in trading does not have a fkn thing to do with your broker.  NO correlation with your broker - NONE.  Good grief people.  The same pareto of a pareto %’s held even way back when every order was called in by phone and hand carried to the floor and commissions were 10 times what they are now, and fills were atrocious, and traders had to hand draw their own charts, and calculate their 'tools' on paper... omg

Edited April 22, 2022 by zdo

[aimhi 10]

I guess more than 90% are losers in forex market who end up blowing their account in the start and go home. Then comes some temporary winners who are actually winning for being stupid and they does not know what is going on and what they are actually doing so they are knocked out after some time and then remains the actuals which are not more than 1-2% i guess.