Sunday, February 14, 2010

95% forex trading failure rate? By Dopey

Another great post from a great poster:

"Another part of this is the low-entry barrier to trading. If you wanted to be a lawyer or doctor and eventually make a 6 figure income every year, you have to pass a slew of gatekeepers beginning with your first four years of university.

Then law or medical school gatekeepers ensure that only those that are academically suited enter the the school. Then during your years in the school, their are numerous tests that judge your emotional abilities to handle the job along with your intelligence.

Once you finish school, you know have to pass another gatekeeper, the licensing boards of each state.

Once you have your license, you now have to join a law firm or hospital which means you have to get by their gatekeepers.

Once you're in, you now have to bust your ass for years to make partner or get to the point where you can open your own private practice.

The end result is that after 7-9 years of universities and 5-7 years of busting your ass for someone else then, and only then, will you consistently make a 6 figure income.

Now, let's look at trading forex. What do you need to become a trader. A frigging computer and $500. Yet everyone thinks they'll be making a consistent 6 figure income in a few months or even years. Forget the fact that the industry is full of some very, very intelligent people who have spent years learning how to be a consistent trader. Forget the fact that you're going up against organizations that have millions of dollars to throw behind their traders in the form of support such as analysis and system testing. Forget the fact that these same organizations are playing on a different field then you are. All you need is a few indicators, a broker that doesn't screw you too much, some money management and in a year or two you'll be living the high-life.

Is it any wonder so many fail?"

By Dopey, a trader from a great forum



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