Yes it’s true and it is only a conservative estimate. There have been many statistical studies to prove the point. A very small percentage of these traders even go bankrupt.
Why do traders fail ? Is it because they are stupid? No. Studies have shown that many of these traders are highly educated, have good incomes and are highly motivated. Then why do they fail?
Lack of Education
A doctor generally spends around five years in training before he is given a basic license to practice. Developing core skill sets is one of the fundamental principles of success in any human profession. In relation to trading, education does not mean learning about how to do, for example learning Fibonacci patterns or drawing charts or learning new trading systems from traders. It means thoroughly educating on all aspects of the chosen profession. Learn about Psychological tendencies of human mind, correct approach to money management and learning the correct exit and entry methods for the trading style that suits you, the list is practically endless.
Peter Bain in his Am Reviews says it clearly “You can never learn too much”.
Your income would be the by result of the skill you develop. Devote yourself to life long learning.
Approaching trading with the wrong Mindset
Here are common misconceptions which beginners often fall into.
* You can Trade with 80 % accuracy.
* Turn $ 1000 into six figures in short few months.
* Predict Turning points in their market within minutes.
* Buy a system that is 100% ACCURATE.
* Quit their day job and begin trading full time in a short period of time.
Why is this mindset prevalent? It’s nothing but a result of marketing hype which a trader’s mind is often subjected to – “Make 10 pips a day Guaranteed!”. The human subconscious mind often uses these signals to make it’s own reality.
However experienced traders would often tell you that successful trading takes time and persistence.
A successful trader is the by product of persistence, hard work and sound judgment. Good Judgment stems from experience and experience stems from many bad judgments. Take your time to learn trading and expect to make mistakes, there’s no stopping for you.