Why Trading is So Challenging: The Realities Behind the 90% Failure Rate
Once you taste a big trading win, you will never stop trying to repeat that experience. The allure of repeating such successes is enough to keep many traders hooked. However, the harsh reality is that only a small percentage of traders actually achieve consistent profits. According to many reports, around 90% of traders fail to make a profit, while the remaining 10% succeed in making consistent gains.
Consistency is Key to Trading Success
Traders who consistently make profits do so because their strategies are flawless, not because of luck. They stick to a specific trading strategy and perfect it over the years, rather than constantly changing it. This discipline and consistency set them apart from the majority who change strategies frequently.
The Myth of Trading vs. Other Professions
The statistic often shared that 95% of traders fail is misleading. However, it is true that many individuals who start trading lack the necessary prerequisite skills. Just like becoming a surgeon or a doctor requires extensive education and training, trading also demands a certain level of knowledge, skill, and experience.
The ease of opening a trading account and placing trades does not automatically make you a trader. Many traders fail simply because they lack a proper trade strategy or risk management protocol. An alarming number of traders do not understand basic trading concepts such as stop-loss and lot size. Without these fundamental skills, traders are setting themselves up for failure from the start.
Challenging the Common Myths
The idea that95% of traders fail might come from a misunderstanding of what it takes to be a successful trader. The majority of traders who start without a clear strategy end up failing, not because of lack of effort, but due to lack of knowledge and skill.
Just as it takes at least 6 years to become a fully qualified doctor or lawyer, trading requires a significant amount of time and dedication to develop the necessary skills. Success in trading does not come overnight. It is a journey that requires patience, persistence, and continuous learning.
Trusting Your Strategy and Never Giving Up
To overcome the challenges of trading, it is crucial to have a solid strategy and a solid risk management plan. Trust your strategy and stick with it. Develop your skills through consistent practice and analysis. Remember that setbacks are a part of the journey, and they should not discourage you from your goals.
Believe in yourself, put in the work, and trust your strategies. Don’t let discouraging statistics sway your ambitions. Your day will come, and with it, success in the trading market.