98 % of 4X traders lose money - Why?

[BeiShi]

it's all in our own hands) there are so many people that trade and do it successfuly, it means that it's real..) so let's try)

David, I agree with you completely) many efforts, intentions and one day we will leave our main work)

 

[hitfx]

Lack of interest, learning, giving minimum time, trading without planning, trading with greedy mind, less learning etc. These are the major reasons due to which most of the people are losing and saying goodbye this business.

 

[Deng345]

i think only 3% of trader make big sums of money in Forex.

 

[cklayus]

Its simple. when you profit some one loses, that's all. so in order for some traders to make big profits many trades need to loose. If 50% of traders were to make profits in forex then it wouldn't have that much of a profit potentials and the profits were very small compared to the money invested.

 

[justin123]

mostly people loss money because they have no skill not really know about Forex.

 

[tuan007]

I think 98% is an exaggeration.its round about 70 to 80%.

 

[soldati99]

i think 3% is enough.

 

[TareqS]

The number could be bit lower than 98%, but I do not have any doubt that a lot ( probably at least 90%) lose money in the Forex market.

Most common reason for that is traders jump into live trading too early than they should. They do not learn how to analyze chart, money management, uncertainty of this market, etc.

They eventually learn these things after losing a lot of money and time. Then, the old saying comes into play

" Once you did not have experience in trading but had the money; now you have the experience but do not have the money to trade."

 

[Brumby]

Trades outcome is random and invariably you can be profitable simply by luck and the randomness in the distribution of events. If you apply Martingale money management you may even be lucky and thrive in profitability for a year or two before your account gets blown. Additionally even if you are an experienced skillful trader you may still have periods of draw down due simply to difficult market conditions. If you think 90 % failure is too high, I have seen research statistics a few years ago that suggest only 0.2% of traders are consistently profitable. It is not a typo error that the dot is before the 2. The measure of consistent profitability is four consecutive quarters of increasing equity in the trading accounts. In contrast there are other research data that suggest the profitability level is around 30 % for traders but I believe the measure is less stringent.

 

[EURUSD]

Might this is one statistic that true issued by research department that recorded all account on many broker but might not all broker will recorded and still only estimate but might they making conclusion average trader loss and winn that loser still more than winner