jungles
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Fact 1
A recent study undertaken by Ph.D researcher John Forman, reveals that 99.6% of retail forex traders are unable to achieve more than 4 back-to-back profitable quarters.
Fact 2
There are some outstanding hedge funds, however the Barclay Hedge Fund Index, measuring the average return of all hedge funds in the Barclay database, reveals that the average yearly return from 2008 to 2012 was just +3.17%. Which is less than most term deposit rates offered by your local bank.
Fact 3
Traders achieving percentage returns outside of the normal distribution*, in almost all cases, are doing so because they trade in a high risk fashion. Which also means their risk of ruin is high and in virtually all instances, if excessive risk-taking behaviour continues, is CERTAIN!!
The traders you read about on forex forums or at Zulutrade, for example, who achieve extraordinary rates of return, are almost certain to blow-up their account when using standard lots and real money, due to the high risk manner in which they trade.
Innumerable forex accounts at Zulutrade illustrate this. The forum is strewn with examples of once high return-high risk accounts that have either exploded spectacularly or will soon do so.
![201302020910.png]](/proxy.php?image=http%3A%2F%2Fwww.trade2win.com%2Fboards%2F%3Ca+href%3Dhttp%3A%2F%2Fimageshack.us%2Fphoto%2Fmy-images%2F705%2F201302020910.png%2F+target%3D_blank%3E%5BIMG%3Dhttp%3A%2F%2Fimg705.imageshack.us%2Fimg705%2F1733%2F201302020910.png%5D&hash=721261110ac48682f6f9b5a2c67c7d1d)
*Industry standard for traders at Trading Houses or Prop firms is a +10% monthly average. (This ROI decreases as account size grows). More than a +10% monthly average is a signal to professional risk managers that normal risk parameters may be being exceeded.
In Summary
These are Forex Facts that in all likelihood you have not encountered because the people you have met online or in person, either do not know about them, do not want to know about them, or do not want you to know about them.
You need to be aware of these facts so as to avoid being mislead by your own dreams and other people's dreams.
In so doing you give yourself a better chance of making it to the incredibly elusive 0.4% of people who "succeed" in retail trading.
.
A recent study undertaken by Ph.D researcher John Forman, reveals that 99.6% of retail forex traders are unable to achieve more than 4 back-to-back profitable quarters.
Note: Statistically, any person marketing themself as a forex "teacher" will fall into the 99.6% group. NEVER give money to a forex "teacher" for training unless they can verify unequivocally that they are not in the 99.6% group. And remember, the "teachers" online reputation does not constitute verification.
Fact 2
There are some outstanding hedge funds, however the Barclay Hedge Fund Index, measuring the average return of all hedge funds in the Barclay database, reveals that the average yearly return from 2008 to 2012 was just +3.17%. Which is less than most term deposit rates offered by your local bank.
Fact 3
Traders achieving percentage returns outside of the normal distribution*, in almost all cases, are doing so because they trade in a high risk fashion. Which also means their risk of ruin is high and in virtually all instances, if excessive risk-taking behaviour continues, is CERTAIN!!
The traders you read about on forex forums or at Zulutrade, for example, who achieve extraordinary rates of return, are almost certain to blow-up their account when using standard lots and real money, due to the high risk manner in which they trade.
Innumerable forex accounts at Zulutrade illustrate this. The forum is strewn with examples of once high return-high risk accounts that have either exploded spectacularly or will soon do so.
*Industry standard for traders at Trading Houses or Prop firms is a +10% monthly average. (This ROI decreases as account size grows). More than a +10% monthly average is a signal to professional risk managers that normal risk parameters may be being exceeded.
In Summary
These are Forex Facts that in all likelihood you have not encountered because the people you have met online or in person, either do not know about them, do not want to know about them, or do not want you to know about them.
You need to be aware of these facts so as to avoid being mislead by your own dreams and other people's dreams.
In so doing you give yourself a better chance of making it to the incredibly elusive 0.4% of people who "succeed" in retail trading.
.
his broker must love him.
