90% of traders fail...

90% is not as-is.

Numbers are a bit more nuanced than that. In fact almost 95% loses money, but those are the traders that hop on the fast-and-easy money train and leave the train soon after boarding, without their money off course.

The question that remains is: from the 5% long-time traders, how do they trade and profit? In my classes i do see that longer timeframes show more appreciation to pure technical analysis. In that respect, trading from H4 or D1 makes a huge difference with H1 or less. Simply because news events are less of an influence.

Hi to everyone!

Well, it's a good question raised here. As it has been mentioned in another thread here and throughout many forums, the only real failure is when you give up. One has to be patient in order to become successful on FX. As far as I understand , the forex specificity is that long term performance is favorable for profit (though I use scalping as well). I totally agree with the author's opinion that it's necessary to distinguish traders from one day traders.

I completely agree with you. Try forex a couple of days and say that you don't like it is the same that to not even try it at all. It's not very clever to say that you suffer defeat whereas you actually haven't made an attempt to win. This question is as ancient as the Universe, so I'd prefer not to put my personal opinion in detail here. I think it's clear.

"Day" traders only appear to lose quicker because everything happens faster. If you trade on a 1day timescale and the other guy on a 1h scale, you still lose or win the same, it just happens 24x slower.

many things that make forex traders fail, one of which is the lack of a good trading psychology. trading psychology is the effect on forex trading. Trading with having a good psychology it will be very beneficial for us. therefore we need to have a good trading psychology that will allow us to trade with a maximum

Well, I am not sure about the percentage! But no doubt, a number of Forex traders are losers! Basically, maximum new traders start their trading career without proper instructions; they have a shortcut money earning tendency so, they lose their money!

I know good trading psychology is supportive to keep survive in a proper way in this volatile trading place. but what psychology you have mention ? not clear . please explain

My Own experiences have taught me that the real reason why so many traders fail is because of wrong understanding of how the market works and how to approach it. I think that people are being sold dreams and fantasies of profiting in forex. Afterall the retail forex market needs new blood and brokers needs to sustain their commissons. I still believe the popular approach being taught to beginners may be deliberately outdated and most times inaccurate.

This results in initially a sense of simplicity ( buy low sell high). Then there is bias ( i understand the warning that it is possible to lose my investment but I will be the exception)

They ignore the importance of capitalisation, of skill and experience despite warnings.

This leads to overtrading,emotional trading and losses. They experience cognitive dissonance as reality is consistently different from expectations, then they wash out with the conviction that forex is a scam. Others get addicted, get their highs from gambling forex and return again and again.

Despite all i have stated above, i know people who make money from forex consistently. However every of these people have been persistent in learning, getting back up gaining experience and being consistent in a trading style, using enough capital to buffer transactions and being satisfied with whatever positive results the chosen strategy produces, guiding others to avoid their initial mistakes.

Yes, they always looking for a short cut way to earn profit, but there is no way to earn money from here without passing a long time , actually success in Fx is a long time process . so we have to prepare to pass a long time period with great patience in here.

I would advise brokers to take these words to the main pages of their sites - Forex is not for fast riches. True, I'm afraid that then the number of clients will be dramatically reduced.

I think the reason is many traders are lured to forex for high returns/profits, so they just jump-in with random strategies/methods sold by some wannabes. I would say it's more like 99% traders start by losing money. And 1% learn it right to become successful traders. Others just quit or get trapped into the vicious cycle of finding new junk strategies forever.

I guess its 100% of all traders lose money but 90% lose it enough to call it real damage and the other 10% make it.
Trading is hard and is nothing like a regular job. As they say ff it was easy a lot of people would do it but so much of it is like a black art.

Yes , that called greed which attacked me when I was a newbie. I tried to control my greed by means of losing statistic in Forex but honestly failed. I think that’s not possible for any beginners. I have come out from greed by passing long time with great practice in demo.

the reason 90% fail is they don't know how to trade its really that simple

Absolutely, they don't have the skills and knowledge and experience to trade with Forex and thus they won't be able to survive for long, thus it is better to learn first before earning through Forex Trading.

well, its 90% or more that lose money, BUT its not because they are scalpers or whatsoever, they lose money because they dont really have a risk management, I say this alot but risk management is about 20% of all your trading, and it gives 80% of your profits. What I am talking about is that it doesnt really matter your timeframe or your system, but your risk THE END. Even if you had a perfect system that wins exactly 50% of the times, its the risk management that will make you get more money than you lose.

It really doesn't matter if you're a scalper, intra day or Long term. The most important part is managing risk, long term positions should be leveraged no more that one tenth of your scalping leverage and recommend much lower. You are also more inclined to run into emotionally bad decisions against yourself the more you trade, especially when your scalping your using greater leverage and, price slippage, liquidity and cost of trade is important. You can always turn 1000 to 20000 on a good run, but this cannot be constantly and consistently replicated! to be a successful, long term trader you have to flatten out your risk and limit the risk volatility within a certain range other wise you will eventually wipe out, fail your account sooner or later. If you trade well for a few months then go back to scratch from bad risk management, then what is the point.

This is why retail traders lose because they are always focusing on returns, trying to make a quick return on high margin whilst being under capitalized. Let's face it your not going to trade a 1k account (the average start for the retailer) each day to double your account in a year. Unless you are, learning and focused becoming a long term trader. For every percentage of return that you want there is the opposing level of risk that you need to take to achieve. To make 50% in a year has a much lower level of risk than trying to achieve 300%. So if you're trading a 500K account, 50% is an acceptable return, if you are trading a 5K account then for 50%, is not enough for you to invest full time.

99% of retailers lose for this very reason. I would say for every 200 traders here there is prob 2, long term, successful traders. I would suggest if you are a new trader and don't have capital? trade 1k like it's a million and try to get it to 1.5k over 12 months. Then you either capitalise yourself, get others to capitalise you, friends, family or reputable prop firm. If you a new trader with capital then do the same and then capitalise yourself.

Exactly and that is why every new trader eventually ends up blowing their account in start however those who let go these losses can find another opportunity to trade for a successful future.

Basically, which traders start their real trading without learning enough in demo, they suffer with their real money! It’s a knowledge based profession, so without trading knowledge there is no way of success!

There are plenty of traders who do trade on a demo account for a while but still lose money. Forex is difficult and it takes a lot of time and effort to master. Some things can only be learned on a live account, but unfortunately, while one learns they also lose money.