People Who Say "99% of Traders Fail" Deceiving New Traders?

Often, I hear people mentioning how 95% or 99% of all new traders fail. This type of misinformed information in my opinion is very misleading and damaging to the psyche of those trying to learn how to trade forex.

First the facts

Brokers inside the USA are now required by the CFTC to release the profitability rates in profitability percent, and also release the number of active traders. Although these numbers we will take a look out to prove the fallacy that 99% of trades loss money, are from the USA, we will assume that retail traders are as informed and therefore no better than traders around the world.

The true percentage of profitable traders

1. Oanda has almost 50,000 active traders
2. IBFX has 18,579 active traders
3. FXCM has 15,023 active traders
4. Gain has forex.com) has 11,344 active traders
5. GFT has 10,358 active traders

51% of Oanda traders were profitable in Q3. The others are far behind. GFT reports 33% and the rest are between 21% to 29%

These numbers destroy the myth that 95% or 99% of traders are not profitable.

Why this matters to those trying to learn how to trade

If you are told ahead of time that your odds of success are extremely rare, knowing that you are competing against some of the brightest minds in the word, your chances of success are greatly diminished compared to if you believed that others have succeeded and that you can too.

You can become a profitable traders, a large percentage of others have proven it and are doing it on a quarterly bases. Believe in yourself, you can do this, many others before you have.

Collectively let's change this consciences to a positive light enabling more to succeed.

Your thoughts and opinions are welcomed friends.

A Sneaky Way to Steal Someone Else's Forex Trading System

Anyone who is serious about trading needs to have a Forex Trading System that is tailored to them, but there is no reason to start constructing your Forex trading system from scratch.
Why try and reinvent the wheel when you can benefit from other traders years of experience and borrow your trading system's ideas and concepts?

It's easy to do, and there are some pretty good Forex trading systems out there for you to work with. Some of them are free and some are very expensive, but the price tags don't always reflect the actual value of the Forex trading systems. But, many of these systems won't work for you, and I am not talking about out-right dishonesty here, which can be a big problem when trading. What I am talking about is your ability to effectively trade with the system that you may be considering using or buying.

You need to use a system that matches your life style and personality. If you have a day job (not trading), a Forex Trading System that requires you to stare at a screen all day wouldn't be appropriate. You would be distracted at work and miss the opportunities to make money, or even worse, you will not close a trade effectively and could lose money.

Some Forex trading systems have a potential to lose 20, 30 or 40% of your money before they are profitable. Can you handle a system that can drop your trading capital to half before making money? Or, are you prepared to have a string of 8 to 10 loses in a row before you have a winning trade? Some of the best traders in the world lose money on more than 50% of their trades. These are all important points to consider when you are creating your Forex Trading System. Choose aspects of the different systems that are out there that fit your trading style best, and then build your Forex trading system.
An excellent trading method, which was made famous by Richard Dennis and William Eckhardt and is sometimes referred to as Turtle Trading, is one of the best Forex trading systems that I know of. They get returns in excess of 20 to 100% per year using this system. But, could most traders trade their system? Not a chance! Dennis and Eckhardt also loose on over 60% of their trades.

Once you know what sort of Forex Trading System will work best for you, look at the components that make it work. Face it; if you are a new, or even a fairly serious, trader how likely are you to come up with a totally new concept? There are some very smart and wealthy traders out there. Why not use their ideas. Consider Dennis and Eckhardt's turtle trading, their system is based on a "breakout" method. I know most traders could not trade using their exact method, but they could take parts of it, such as the breakouts, to confirm a trend.

You can also use other Forex trading systems to give you an outline of what parts a system has to have for it to make money. All great Forex trading systems have these three basics:
1. Entry Rules,
2. Money Management Rules and
3. Exit Rules.
Study and learn from the Forex trading systems out there, borrow their concepts, and steal their ideas. It will put you on the track to the system that will make you a successful trader.