95% are losers

Quote from TILT2:

Personally, I think trading and running a small business are different. Let's say the convenience stores or grocery stores, must of the grocery stores can survive and make money(although probably not much, but they can make money) and keep going. Conservatively speaking, more than half of the grocery stores can make it. But as you already said, 95% are losers, which means only 5% can make it. That has shown that trading and running a small business are radically different.
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???

All this shows is that trading is a harder business than running a grocery store. It certainly does not show that one is radically different.
 
I have also seen this 95% figure all over the forex forums. I think this is very discouraging for new trader who want to earn something. I think we just need to learn hard and we can profit in this business.
 
Quote from intervention:

I have also seen this 95% figure all over the forex forums. I think this is very discouraging for new trader who want to earn something. I think we just need to learn hard and we can profit in this business.
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Welcome to the ET forum... And do not get discouraged... Nobody can tell you if you can make it or not...
 
What is the most important thing in Comedy? TIMING

However this environment is not so much about the how many participants are in this market population size, INSTEAD it is what actions the SIZE of CAPITAL is making.

If we were evaluating metrics relative body size, then a FEW people over 300 pounds would not skew the results.

HOWEVER, In the markets a FEW people with BILLIONS in Capital can skew the results.

ie. when Soros Levered up 1 Billion to short the Pound that can affect things (this is why he levered up, to increase the probability of his trade working coupled with his understanding of EXPLOITING the opportunity relative the Bank of England). A great read is Popper's "Of Clocks and Clouds"? I have an info map of this for anyone that is interested in it.

The trade station risk disclosure presents that 1/3 of their accounts are profitable, I was surprised it was not lower.

However, hard to know the truth considering the source.

"Like asking a barber if you need a haircut."
 
Quote from dbphoenix:

1. Because they think it looks easy.

2. Because they think they're smarter than they are.
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I agree, sadly I've been part of the 95%+ that fail each year. At first I thought it would be easy and I thought I wouldn't be like everybody else. Then I got my arse kicked by the markets for a few years in a row. I never lost interest and kept coming back and trying harder even though I wasn't making money (which makes me feel like a schmuck, but oh well). In my most idiotic recent blunder, I bought a call option on AAPL, sold it at a loss the other day, now it came back strong today, so all that money I could have made off it is out the door. (SIGH) I don't want to completely give up on the world of stocks, since I know the money can be good when you invest long-term and have patience; but I've admitted to myself I don't have the self-control to let my profits run and to have discipline when stocks start to turn south, when I trade.

Now my next plan of attack is to eschew trading until I reach $10k in both my trading and IRA accounts, then I want to buy good stocks which I know will be around in 50+ years and also buy covered calls on them, so I know my potential profits in advance. Then if the stocks aren't in the money at expiry, I made extra off the premium payment and dividends. Also, I will keep studying and learning.

Thus, to everyone I say, if you do poorly at trading, don't feel bad, you could have been me! But, if you fail at trading, there are still so many other fields to go into and other things to do in life, so don't feel bad.

:D I am 28 years old, so luckily the amount I lost wasn't that much, but I was the textbook putzy example of doing everything wrong that I could have done. I didn't diversify, I didn't have enough starting capital, I tried to use options to get bigger returns (which are possible, but can also wipe you out with bad luck), as well as other 1/2 assed methods. But, on the plus side, I learned from my mistakes and see that perhaps I need to find a career in another field, and give up trading. Or.....I can find a company I hate and get a job managing their fiances, and they'll be broke over night! (Sorry, some self-deprecating humor)
 
Quote from Ironplates:


The trade station risk disclosure presents that 1/3 of their accounts are profitable, I was surprised it was not lower.

However, hard to know the truth considering the source.

"Like asking a barber if you need a haircut."
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P/L before commish, no doubt.
 
I'm a reporter with the New York Times and I'm writing a story about retail investors getting into options trading.

If any users on this board would be willing to speak with me about their experiences please email me at nathaniel.popper@nytimes.com.

Thanks in advance.
 
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