Monday, June 29

95% of Retail Forex Traders Lose Money – Is This Fact, or Fiction?

Interesting Study by TOI:Indian Retail Investor/trader lost 84000  cores in 18 month period. Thats a Huge sum of money lost by retail traders, so what exactly lead to trading failure of retail traders in Stock market.The difference between success and failure for a trader is wafer thin, Lets elaborate with an example
Amateur retail traders tend to think that the professional trader or Institutional investor have some sort of secret knowledge/system that enables them to make huge profit in trading. However, the difference between a retail traders trying to make consistent profit  and a professional traders zeros down to the trading mindset and trading psychology.


Let us give you an example of what we mean. A relatively new retail trader is given a profitable trading system having a trading  strategy with proper stop loss and target and the trading system  delivers an average success rate of 60%. The retail trader is exited that he  has finally found something that will ensure his success. Over the course of 10 potential trades using the trading system it gives a perfect 60%



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