I am not sure about the stat either. But I think a high number of traders fail. The main reason behind this poor trading knowledge and unrealistic expectations.
90% failing rate , its true ?
- Thread starter Ahmed Solaiman
- Start date
Many traders lack basic understanding about the market and jump into complex technical analysis which leads to losing.
Trading psychology is the main component that lack in many of the traders. I think traders should focus on developing the right trading psychology as they switch their trading account from demo to live.
this is true but to develop a perfect trading psychology is really a challenging task , need a long time practice with great level of patience.
As in any high performance activity, there are only so many individuals out of 100 that are willing to do what it takes to be successful. And as in any high performance activity... even doing what it takes does not guarantee you immediate success or even eventual success in that matter. The key is longevity, perseverance, persistence...at a high pace, at a high level, with high stakes - the opportunity cost of having been able to do something else through all that time, to have been able to direct your focus and energy elsewhere, where they would have been rewarded faster and with relative ease. The playing field is counter intuitive as well - you don't get immediate positive or negative feedback for your actions as a system, a process, a continuous behavior - time must pass... It's just a very hard game with easy access, deceptively easy to do but extremely hard to get positive results out of for a prolonged period of time. The odds are just against you. That combined with lack of faith in oneself and the ability to overcome the odds makes it even harder and less possible to achieve for even more people. : ) Other than that - it can be done, there are examples, if one can do it, someone else can replicate it.
That failure rate depends on. For anyone spending a decade on market studies and trading the failure rate is not that high. It also said that traders with a master degree starting at an investment bank have a 50% chance to succeed. So your failure rate is in most cases wrong. It might be true on the 90/90/90 rule, that 90% of traders fail within 90 days loosing 90% of their account.