Why Most Traders Lose Money

[Kim 8,004]

I came across an excellent article explain Why Most Traders Lose Money.

Key facts:

• 95% of all traders fail.
• 80% of all day traders quit within the first two years.
• 60% of all day traders quit within the first month.
• Trading is a profession and requires skills that need to be developed over the years. 

Yes, there is a steep learning curve in trading, like in any area in life. It takes 4-7 years to become an engineer, a lawyer or a doctor. Why people expect it to be different with trading? Can you become a doctor by following a skillful group of doctors?

'If you are not willing to learn, no one can help you. If you are determined to learn, no one can stop you.' - Zig Ziglar

[allinadayswork 53]

heard Zig Ziglar speak about 45 years ago to a group of salesmen.

remember very well his advice; "when you ask the closing question, SHUT UP!"

didnt read the article, but stats on traders pretty much the same for last 40+ years,  yet some do succeed.

couldnt agree more, trading is the most difficult "job" a person can have.

and day trading or scalping can be the most difficult, mainly because of lack of knowledge.

unreasonable to expect to become meaningfully profitable without years of trial and error, or being trained.

[Ringandpinion 1,687]

My 2 cents worth.  I've just been a tradesman all my life, not a professional.  But I didn't really become the "go to guy" until I had almost 20 years working on the different kind of machines and control systems that went with them that I worked on, ultimately I ended up with 40 years in that field.  I can't count the number of military and corporate "schools and/or classes" I've been to in that time.  In periods between contracts I would trade, off and on, for about 20 years.  I didn't make very much if any money, but I found it fascinating so I kept playing with it.  But I didn't start consistently making profits trading until I finally sold my business and found myself with nothing to do, so I put full effort and full time into learning to trade and that was after 20 years of putzing around with it.  Some mentoring classes and over 4 years now on SO and I still make expensive mistakes.  It is easy to say "I'm smarter than the average guy so I should be able to do it a lot faster than that", but does that mean you could learn it in 5 years or 3 years or what.  Don't quit your day job until you either A: already have your retirement and won't be risking that or B: you have been doing this long enough to be making a consistent profit.  I think the stress of HAVING to make a profit from trading is the big filter for traders, when you aren't making any money or worse yet, losing money and you can't pay the rent, the psychology is going to make it that much harder to be successful at trading.