How successful are forex traders?
Success is relative. For one thing, many investors and traders view success to be different things. One trader might see another’s a success as a bad business. But, if you are looking for some statistics, it is reported that 80% of day traders actually quit trading forex within their first two years as a trader. Of all traders in the day trading game, only 60% continue trading after the first month. By three years down the line, only 13% have continued to trade, and this reduces by half after 5 years in the forex trading game.
There are obviously many reasons for this but one of the more common reasons is emotional trading, where investors allow their trades to be influenced by their thoughts and emotions.
Can you get rich by trading forex?
Of course, reading the last question, our answer will probably be resounding “no”. It can make you rich if you are a deep-pocketed hedge fund and are skilled at trading currency. But, for us, average traders, forex isn’t an easy path toward fortune. It can cause massive losses. But, it’s important to remember that all forex traders make losses on their journey – it’s impossible not to. It certainly shouldn’t be considered if you are on a low income or are struggling to make ends meet. Forex trading takes patience and skill, something that not everyone has. If it was a get-rich-quick scheme, there’d be many more people doing it successfully than there actually are.