What Percentage of Forex Traders Make Money in the Long Run ?…. You’ll often hear the myth that 95% of all traders fail. I was very interested whether this statistic is true or not, so I researched and read a lot of academic journals and reports from broker analyses and what I found was astonishing. Here a few points;
Generally, the forex brokers report to the regulators that about 60-70% of their retail clients loose money over the course of 6-12 months.
If you extend this over a longer term, say 5 years, I’d venture that 85%+ loose money.
(However, something like 50% of the retail forex accounts which are opened are funded by a credit card (!!!), so that gives you a strong idea of the background, knowledge and motivation of the average retail trader.)
As for the pro forex traders, I’ve never seen credible numbers reported.
There’s no need to know What Percentage of Forex Traders Make Money in the Long Run ?…. Even if you knew, that wouldn’t help you…
The key to making money in forex is conquering the psychology of trading.
You need to set aside whatever notions and goals you have so you are able to take what the market has to offer.
Learning a system and strategy isn’t hard. Patience and the ability to react appropriately, without emotion clouding your judgment, are the hallmarks of a successful trader.
So long as you’re consistently able to gain more than you lose; you’ve won. Start with $200 and trade a dime a pip. Continue to post wins, build on your balance, and add more as you go.
My advice is to learn on a demo account then move to a live account with a very small amount- a couple hundred bucks- and trade in micro-lots for a few months.
Making the transition from demo to live at a high amount is hard for new traders because you’re no longer playing with fake money. That brings a new level of anxiety that you have to learn to cope with.
As to how much you’ll need to quit your day job and such; that’s really going to depend on how you want to live, what you need to survive, and so on. It’s not really a question any of us can answer for you because your income is going to be tightly tied to what you are risking.
And finally; if you want to make money through forex you must master risk management.
Again- master risk management.
Read as much as you can on it, focus your strategy on it, and read even more.
It is essential for honing your ability to pass on less optimal trades and preserving your profits.