The Journey of a Trader

[ituglobal]

Why 95% of traders fail?

In this post, we will discuss the trader's road to success and why most of the traders give up at the halfway point.



On the chart, I was trying to portray the journey of a trader:

most of the traders start this game with gambling.

They randomly buy and sell the market relying on their intuition and with a high degree of probability end up with nice cush.



However, as they proceed they realize that the profits that they made were the product of luck, not skill.

The more they trade, the less they win.

At some moment losing trades start to outperform winners.



Trying different things, jumping from one strategy to another, one comes to the conclusion that nothing seems to work.‍♂️

He goes broke, he is panicking.

At that stage, the majority blame the market for their failure.

Forex, stocks, gold trading is complete scam.

Making profits on the market is not possible.

They give up and leave.



Only 5% are persistent. Only 5% are blaming themselves not the market for their failure.

They start following a strict trading plan, they follow risk management recommendations of pro traders and at some moment they start making 0.

Buying and selling the market, at the end of the day, they don't lose anymore.

That is the most important milestone in a trader's journey.



Realizing that the one stopped losing, a trader starts polishing and improving his rules in order to achieve better results.

He trains and works with his psyche.



After years of struggling, one finally contemplates a consistent account growth.

He became a pro trader.



I wish you to be persistent, traders and don't give up.



Patience pay and at the end of the day winners win.


Source: TradingView

 

[Lewis Capaldi]

Thanks for your contributions! Actually, most of the new traders try to make quick money here! They don’t care their learning part! Even, they invested their real money when they have no idea on trading! As a result, more than 95% traders are losing money here!

 

[Resolve]

Thanks for your contributions! Actually, most of the new traders try to make quick money here! They don’t care their learning part! Even, they invested their real money when they have no idea on trading! As a result, more than 95% traders are losing money here!

We will have to understand that making quick money from the Forex markets is not possible.

 

[HeavenLeighGill]

Good points. A common theme on many of these forums includes new traders joining with high expectations, introducing themselves, and then disappearing forever. Sticking with it is definitely the part that a lot of traders are lacking.

 

[e_abrams]

Do 95% of traders fail? Are there any concrete statistics that prove or disprove that?

 

[Johhnyboy]

One of the main reasons is people get sold a IG interpretation of trading lifestyle like flash cars big lit sizes etc
Keeping it real and nice slow steps

 

[Haruto]

Traders of different classes have different experiences of trading. Initially my trading journey was tough but over time it became easier for me.

 

[Marco877]

It’s quite natural that a trader’s trading journey goes through thick and thin and traders have to be very patient about conquering Forex.

 

[Marco877]

Thanks for your contributions! Actually, most of the new traders try to make quick money here! They don’t care their learning part! Even, they invested their real money when they have no idea on trading! As a result, more than 95% traders are losing money here!

Yes, I agree with you in this regard. Actually newbies make these mistakes that you have already mentioned.