Saturday, 2 July 2016

After all what percentage of Forex traders lose money? #forex #trading #currencies

How many of us heard the myth that 95% of all traders fail? 

Here some interesting points:

  • 80% of all day traders quit within the first two years.
  • Among all day traders, nearly 40% day trade for only one month. Within three years, only 13% continue to day trade. After five years, only 7% remain.
  • Traders sell winners at a 50% higher rate than losers. 60% of sales are winners, while 40% of sales are losers.
  • The average individual investor under performs a market index by 1.5% per year. Active traders under perform by 6.5% annually.
  • Day traders with strong past performance go on to earn strong returns in the future. Though only about 1% of all day traders are able to predictably profit net of fees.
  • Traders with up to a 10 years negative track record continue to trade. This suggest that day traders even continue to trade when they receive a negative signal regarding their ability.
  • Profitable day traders make up a small proportion of all traders – 1.6% in the average year.However, these day traders are very active – accounting for 12% of all day trading activity.