I am going to put this page up so anyone can refer back to here if you encounter someone bragging or telling you, you can make money retail day trading Forex.
The real stats are not published anywhere.
The real stats are ~99.9% of people that day trade Forex will lose over time.
This means less than 0.01% of people day trading retail Forex are consistently profitable, month on month, year on year (of course they will have drawdown months or years but you get the picture).
No one believes this stat.
Because everyone is sold hopes and dreams. You are sold instasham lifestyles, pictures of fast cars, holidays, expensive watches, private jets and trading from a laptop 2 hours a day.
No one tells the truth. Everyone is in this game to make as much money out of you as possible.
I have had the benefit of working on hedge fund and trading floors in the City of London in a non-trading capacity to see what goes on – I know this industry top to bottom and I have 12 years experience trading retail forex – I have seen every trick in the book.
The figure touted is 95% lose and the brokers tell you ~78% lose – this gives you the idea there is a “chance” you will make it.
The truth is, the majority in trading do not make consistent profits.
Social media and trading forums are littered with instasham lifestyles, #fintwit and #cryptotwitter is full of part timers and gurus selling memberships – there is no truth there.
They all tell you, “you just need to believe and you will get there” & “if you had more discipline you would make it” – this is simply bullshit.
It is the equivalent of the church telling you to believe harder to cure Sally’s cancer – yet she still died – same deal.
The only people making money in trading are the educators, gurus, course sellers, affiliate scammers, brokers, market makers, book sellers & publishers – these people are people who could not do it. They couldn’t trade consistently profitable accounts so they have to sell something to you – it is far more profitable with less risk.
Did you get that bit?
People who do NOT trade, selling courses & affiliate broker scamming make far more money than those who day trade for a living.
There is literally no one making consistent profits day trading day on day, week on week, month on month, year on year.
If they are, they are a total outlier to the hundreds of thousands of people who try.
“BUT BUT BUT MY MATE TOMMY SAID JONNY MAKES 5 GRAND A WEEK!!!” – no, this is all bullshit.
Retail trading contains the biggest amount of bullshitters you will find anywhere – it is full of pathological liars and addicted gamblers.
Most are trading $200 micro accounts showing you 200% daily returns – it is all bullshit. Zero skin in the game.
When you look into the educators – most have a 9-5 job and cannot trade to save their life. The calls they make on FX are appalling some charge over $50 a month to sell you squiggly lines and bullshit!
To make it at this game, you have to throw your life away, as I have said before it takes over 5+ years to get consistently profitable. You will continually blow up along the way.
Anyone that I know that is consistently profitable says they would not have started if they know what they know now – years in.
A full time trader has no security of income, no pension, no sick pay, no holiday pay – they are gambling their own money each and every day – it is a horrible position to be in when its going wrong.
You are going to work harder and longer than any 9-5, you are going to be under more stress than any 9-5 – so much for your, “I trade because I get freedom” statement.
You need to realise that if you are a manual trader – you are not scalable.
Having an off day? Feeling unwell? You won’t make money.
Want to take a day off? You can’t – you don’t earn any money.
Want to employ someone to scale up your operation? ERRR ERRRR you can’t – its all in your head.
So great, you have spent 5-10 years learning something you cannot transfer or scale up and now you are locked to a trading terminal burning your retinas out.
Not such a sexy occupation now is it?
People have $$$$ signs in their eyes when I talk to them or encounter them online – it does something deeply psychological to their brains. It warps their brains so much that in the face of facts that someone is a scammer they ignore what I say – this happens daily.
You should read some of the encounters I have with people – people are desperate to make money, thinking retail forex trading is a viable option – it isn’t for 99.9% of cases.
Yes there are anomalies/outliers. No it is not going to be you with your $200-$50000 account and 18 months experience.
I can count one one hand the amount of consistently profitable retail day traders I know – they run huge accounts and have been doing this for decades.
The best/worst part of all this at the moment is the wolves of instagram where people are actually putting money into 20 year old scammers in the belief they are going to make them money.
They are not FCA authorised/regulated – they are scammers. Stop funding these criminals.
This has been going on for years and the FCA have done nothing to stop it – here is an article by Symeon Brown – it is even worse now than it was when he wrote it two years ago https://www.theguardian.com/news/2018/apr/19/wolves-of-instagram-jordan-belmont-social-media-traders
Just to cement this all off with empirical evidence – here is a Brazil stock market study on day traders – this is the truth – don’t let anyone bullshit you otherwise – especially gurus & educators.
We show that it is virtually impossible for individuals to compete with HFTs and day trade for a living, contrary to what course providers claim. We observe all individuals who began to day trade between 2013 and 2015 in the Brazilian equity futures market, the third in terms of volume in the world, and who persisted for at least 300 days: 97% of them lost money, only 0.4% earned more than a bank teller (US$54 per day), and the top individual earned only US$310 per day with great risk (a standard deviation of US$2,560). We find no evidence of learning by day trading.https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3423101