Follow Us

forex_success_smallForex winners

The percentage of winners  in Forex is a mystery.  Nobody knows it for sure. There is a theory that 50% of traders win since Forex is a zero sum game. In other words,  for every dollar earned on FX someone else losses a dollar. So on average, there's no profit. This is different from say, the stock market, where the average person can hold a package of stocks that appreciates over time.

However, this theory could be far from being true since all the 50% could be taken by several big players: banks, broker companies and experienced traders. Frequently accepted ratio is 90% losers to 10% winners. But again this estimate refers to each and every trader attempting to profit from Forex trading during their first year of trading. One can say that after 1 year, those who don't  quit  and are able to carry on successful business make up the wining 10% of Forex investors.

One of the principles for a successful trading is identified in a review of Van K. Tharp in his book entitled "Trade Your Way To Financial Freedom" 1999. In his research he studied 50 successful traders to try and find out what they were doing. Van was looking for something that they all had in common. After he interviewed the 50 he discovered these traders all had 50 different methods of trading. One of the major key's to their success was that they all had "low-risk trading ideas".

One of the common beliefs among traders is that the human element is the most serious weakness of the traders. It is not the market that beats them but the fear, greediness and hope.

"That is all I have to tell you about exits. Don't get greedy,  let the rules, not your emotions, take care of your trades"(Larry Williams,  Day Trade Futures Online, Wiley, 2000, 240p)

Top Forex Brokers Reviews here

Register_big