FX Retail Traders - 2016
% Breakdown of those who make it and those who don’t
Estimated % of Winners –
Minimum consistent winners who manage to make profits both monthly and yearly -
3 -5% - (Independent estimates)
Maximum number of consistent retail winners who make profits monthly ongoing -
22 – 28% - (Broker / trade estimates )
My own personal view based on other independent statistics and spreadbetting stats –
11 – 15% of all retail FX Traders may be profitable on a consistent basis
Why do so many traders – ie estimates from 72 to 97% of retail traders never make trading profits on a consistent basis ongoing over months – quarters and yearly ?
Out of every 100 new retail FX traders
30% approx should never really even start to FX trade – ie due to personal circumstances – ie below average intelligence levels ( 1Q ) – mental illnesses – total lack of personal focus and disciplines etc
The other 70% who maybe do have a chance to make it - out of those retail traders -
High percentage – ie over 75% believe that its possible to be consistent and profitable within 1 year of part time trading – ( actual times vary from 2 to 7 years to make the consistent level) . This results in many giving up between 6 and 12 months after starting – either through losing too much money or other interests etc. FX Trading is pressurised and can be stressful when trading with real money . Many traders never realise they cannot handle pressure.
Of the rest – ie 25% of the 70% of newbie FX retail traders – ie approx 17 -18% do their best to become consistent and go over 3 years and get to a stage that they are progressing continually.
Less than 10% of these 17 -18% of newbie traders – ie approx 1 to 2% end up working for themselves and earning their main source of income from retail FX traders .
The other 16 to 17% remain part time and supplement their main income from other work with the returns they make from part time FX trading – whether they spend just 3 hrs a week trading or even 15 hrs a week - with a plan to grow their Capital base and their annual profits
If you do make it and become a consistent profitable FX retail trader – can you make a good return and earn enough money to make it a full time position?
ABSOLUTELY 100% YES
Retail FX trading is totally different to commercial / Hedge Fund/ Bank FX trading. Don’t compare the results as its like comparing apples with oranges etc.
Good consistent retail FX traders on accounts under $100k can make anything from 15 to 40% + per month returns – ongoing – although it’s not possible to continually compound as size comes into play . I have personally witnessed retail FX Traders on live accounts make over 5000% gain on small size capital account under a month – but again this is not sustainable over longer periods and with of course larger capital bases
What you put in to retail FX trading does correlate to what is possible to get out from it.
The higher the skill level and the longer the devotion and time spent does result in higher returns
All Forexmospherians know this - the trading journey is always ongoing