Can Retail Traders Succeed at Trading Forex?

retail tradersIt is often said that 95% of new retail traders don’t really make it in the industry, but this seems to be a statistic that is casually thrown around and is not a quantifiable definition of success. Various day trading firms have reported similar statistics, as only a very small percentage of traders produce consistent profitability in the long run.

According to an article on Vantage Point Trading by Cory Mitchell, the actual success rate is closer to 3.5% to 4.5% based on the numbers in their trading program for five years. Of course a good number also made good profits but not enough to keep them in the game while others were just negligibly profitable.

For those in the retail forex industry or the part-time traders out there, the statistics might be different and so far, there has been no reliable study conducted just yet. However, the unbelievably low success rate shouldn’t be discouraging as there are a number of ways you can turn the odds in your favor.

Individual retail traders are in charge of their own pace of education and practice, unlike institutional traders whose performance is measured against industry or firm benchmarks. Traders who work for financial firms need to achieve certain levels of profitability or meet a specific number of trades or positions in order to stay in the company. These high standards can be crippling to a beginner trader who also has to deal with the psychological and emotional aspects of managing proprietary accounts or even other people’s money.

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easyMarkets

With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. Trade currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! Welcome to the exciting world of trading. Welcome to easyMarkets.

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