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How many of us will succeed in Forex?

Many of us have probably heard the statement that 95% of beginners lose in Forex and remaining 5% become successful.

A common trading journey in Forex starts with demo account and develops into live account with further positive or negative outcome.

We have made own simple research that was aimed to find out how long on average traders plan to demo trade Forex before going live. We offered traders to vote on our Poll. Here are the results:

Forex poll results

Visit poll results page

Although it would be wrong to state that these are exactly the results that prove the theory of "95% to 5%", the data came out to be quite interesting.

Traders who planned to invest real money after 1-6 months of demo trading formed 68% of all voters. There were 17% who were giving it about 1 year and 6% who said they will demo trade for 2 years or more.

Our research cannot provide an insight whether all those traders will change their minds about going live in Forex after stated period of time, but we may presume that many of them will more or less stick to their plans.

You have probably already made your mind about the option you’d vote for in our poll above.

Let’s see how many of us will succeed in Forex?


Forex traders

If you have chosen to open a live Forex account after 1-2 and up to 6 months of demo trading, your chances to successfully manage your live account are quite slim. Exceptions happen, but we speak about majority of Forex traders.

The reason why we made such verdict is because no matter how much you study Forex every day, 6 months is too little to gain all necessary experience and digest enormous amount of information about Forex trading, plus be able to test it long enough in order to confidently invest money relying on knowledge gained and start trading successfully.

Traders that were willing to dedicate about 1 year to demo trading had most likely been already demoing Forex for some time and gained some initial experience, that allowed to analyze the time needed for proper learning and research more realistically. These traders have initially higher chances to manage live accounts properly, but would need much more time to be able to achieve stable performance. Their risks of sooner or later losing it all are still high; therefore, unless they consider at least another year of practice and studying we may add them to our initial 68% group of risk. Total would be 85% now.

Again, why we are so strict bout the verdict? In any field professionalism is never achieved in no time. Students study for 5-6 years in universities to obtain a profession, a sport champion has to work on his body and skills for years before receiving his first gold medal.
Learning Forex in one year won’t make most of us financially independent.

The category "no need for demo" lists both: traders who voted for immediate opening of real account in Forex and learning while trading live, and traders who already had real accounts. This category was made to help maintaining quality of votes on other voting options.

And finally we have the remaining 6% of traders who planned to demo trade and practice for 2 years or more before going live. This small group has the highest potential to make it right and achieve its financial goals in Forex. We can only add here a well known wisdom: "Success in anything you do lies in hard work, continuous learning and passion for tasks set and choices made".

What is our advice after all?

If you happen to be in the 85% group, simply plan for further studying and testing and later open a live account with more serious approach.
If you belong to remaining 6% of traders, move on and stick to your plan.

What practical value does this research have for an average Forex trader?

With some exceptions (which we all wish to be a part of, but let’s be realistic), there will be no quick profits in Forex and no financial miracles.

Demo trading is a great and free way to test your Forex trading skills and practice as long as it is needed. Being serious about investing real money, means being serious about learning how to manage them in artificially created conditions.

But, let’s don’t forget about live trading!
Live trading is even much better way to learn about real challenges in Forex. Many Forex traders confirm that after trading with real money they had to revise their views about Forex trading.

It is highly advised to open a real trading account to get a taste of real Forex. Caution! Don’t rush in to earn money with your first live account, approach things wisely.
If your trading skills aren’t truly outstanding so that you can confidently manage large funds, do not invest a lot in your first live account. Consider you new live account as live-test account. Test your live skills by managing a small balance and trading the smallest lots possible(!): up to 1000-2000 units, so that your balance won’t be affected much even if your first trading attempts result mostly in losses. Find a broker that allows to open a mini account and trade with small lots.

And finally, our scheme to success in Forex:
Demo trading – live-test trading – live trading
Between each stage at least 1 year of trading experience.

To your trading success!


Edward Revy and my best Forex strategies Team
http://forex-strategies-revealed.com/
Copyright © Forex Strategies Revealed

Many Forex traders open live accounts too soon, which cause losses on a big scale. After that many Forex traders give up too soon...

Both facts are in favor of 95% to 5% statistics.

Rich

I believe controlling ones emotions is the single most difficult skill to master in trading. Richard Dennis the guy who put together the Turtles back in the 1980s said, "I could print my trading system in the WallStreet Journal and almost nobody would be able to make money with it, because they wouldnt follow the rules! Their emotions would take over." By the way, the turtles trading system is on the internet for free! So Richard Dennis has given his famous Turtle trading system FREE to the public and people STILL cant make money in the markets over the longhaul. We can always count on the emotions of Human Nature to screw up a time tested trading system!

EMOTIONS IN TRADING SUCK:
Trading needs to be treated like a business. Trading is no different than starting a flowershop, or auto repair business or a antique store! All have profits and losses, all have expenses and revenue. The key is to find a trading system that fits ones personality so you are able to follow it to the letter.
Losing trades must be looked at as nothing more than the cost of doing business. Just like a Flowershop that has 4 employees who each make 25k a year, thats a $100,000 per year expense to the owner! If 15% of the flowers on hand die before they are sold, its a business expense. If the mortgage on his place of business is 2k a month, thats an expense! It's no different in trading, losing trades are a part of the trading business.

Master your emotions first, then you will master your trading!

Hi, I'm a Forex noob and I'd like some further explanation please.. Why is it so important that I trade for at least 1 year..? Why can't I graduate in 6-9 months for instance and look for real profits in Forex?
thank you!

Andrew

Hi Andrew,

Thank you for your question.
Here we are not challenging your abilities to learn fast and be ready to trade responsibly and profitably in short period of time.
There is another dimension of that, which doesn't depend on a trader - it is the Forex market itself and the global economy.
There are variety of possible trading condition on the market that should be learned, yet the market is not going to reveal all its cards and demonstrate its pitfalls at once. It takes time to test your trading system and skills against the market thoroughly.

Regards,
Edward

I'm also new to trading and I'm within my first quarter of live trading. Your emotions is a big deal in forex trading, also you must know the behavior of the currency pair your investing into. I have experienced with real money a volatile GBP/JPY take out my stop and then move in my direction during news report. I learned very fast from that experience. There are pairs that trend most of the time and pairs that range most of the time and then there are the hybrids - these trend, and range, and then trend again. Learn as much as you can about one particular pair first and develop a system for that pair at your time frame.

Hi
not sure if i will make it but i intend to trade in one months time. i have attached myself to the MTI training programme.
What are the chances of me making it in the market with this training.

hi Edward here is jatin from india.i have3 qustions
1.)i want to know that u said that 95% of trader are loss in this business and just 5% are got seccess in this business. so i want to know that this data is only based upon beginners or all are experinced traders.
2.)And one thing i would like to ask u that if i practice 5hrs per day then i think i would be able to start real test trading in just 6 months.
3.)what do u think about the story of Richard Dennis is real or its just gossip.

Hi jatin,

The data refer to 95% beginner traders.
Only those who are persistent in their learning and research despite success of failure on the early stages are able to reach their goals.

Even if you practice 5 hours a day 6 months may not be enough to start managing serious investments, but may be just enough to try out your trading skills with a mini investment. First live trading experience in Forex is hardly ever smooth. No one wants to be a loser, but almost every one loses. You should be prepared first of all mentally, that's why also small initial investment is advised in order to take out additional pressure created by trading live money without previous experience. If you set a goal to test your skills, rather than a goal to prove that your are not a loser, then your trading experience will be productive and enjoyable!

Richard Dennis developed and lead turtles trading system and it is (I believe) available on the net.

Regards,
Edward