They say 90% are losers

[jove]

Can any one tell me who made the research and took the statistics about the 90% losers. Who are they? How did they come up with this percentage? I am for now making profit on most of my trades. How can they be sure that I will be one of the losers in the near future?

[doragio]

You know what, I never found out where the industry statistic came from so can only share some of my experience.

When I first started trading, I was with an IB rather than a direct market maker. After became good friends with the guys at the dealing desk, one of them revealed to me that out of the hundreds of accounts they have trading with them, less than 10 were profitable. So, back then, this static stuck in my mind.

Maybe it's just the general observations over the years leading up to this #. But fact is, doesn't matter if it's 90% or 99%, as long as others can do it, you should be able to as well. Look on the bright side, at least it ain't impossible.

[Burtakus]

Who around here really cares what the pass/fail ratio is. If we were really worried about that then we wouldn't be hanging out in the markets or at moneytec.

Bottom line is that people make. It just happens that very few make it in trading which menas that it is harder than most things and therefore it is more fun and more rewarding than most other things.

[Takada]

I think you should be concentrating on yourself and making sure that you are one of the 10%. The hardest thing to learn in trading is discipline. As a newbie trader with a demo, I am concentrating on that more than anything right now. I am suure when I start with my own money it will be much harder.
The sad fact is that most people are undisciplined. In fact our whole culture and society rewards undiscipline. So it should really be no surprise that the majority of those who get into trading fail. Even if they have been hugely successful in other professions. Concentrate on your mind and money management and you will do just fine.

[malamri]

how can 90% be losers? if going long one currency means going short another, that implies there is a buyer and a seller.

it takes 2 people to make a market and for every winner there is a loser....hence this 90% thing does not make sense.

obviously the practice of FX trading is a bit more complex than this as many corporations/individuals will not be trading FX for profit. ie it will also comprise buying and selling of products/services, hedging......

but my intial point re 90% are losers does not make sense!

[JR97]

Another thing to keep in mind is there is a diff between being a losing trader and being on the other end of long/short trade.

Somebody closing out a long to take profit doesn't mean the guy/gal on the other end is getting the raw end of the deal. What if that other person is position trading and saw your closing out a long as a good time to add to a short position? Just something to keep in mind.

[tunesmith]

One way to look at it is, yes there does have to be a buyer for every seller, however a small group of traders could take the otherside in the trade. Let's say 100 people are trading a particular currency. 90 of them buy the currency and the other 10 take the all short positions of the 90. The price goes against the 90 and you have 90% losers and 10% winners. I guess what I am saying is the traders taking the other side of the trade do not have to be 50 different traders. It could be 10 traders taking the other side of the 90 people. Does this make any sense?(lol)

[gstefanick]

Originally posted by tunesmith
One way to look at it is, yes there does have to be a buyer for every seller, however a small group of traders could take the otherside in the trade. Let's say 100 people are trading a particular currency. 90 of them buy the currency and the other 10 take the all short positions of the 90. The price goes against the 90 and you have 90% losers and 10% winners. I guess what I am saying is the traders taking the other side of the trade do not have to be 50 different traders. It could be 10 traders taking the other side of the 90 people. Does this make any sense?(lol)

Good example... Here is my 2 cents...

Most people I know (after trading for 10 years) lose their account after a period of time. This is including myself a few times before I got myself right....

I have always read and heard that most people lose and I think this is becuase people lack rules, money managment and the BIG D....

Good question...

George