How many people earn on Forexie?

How many people earn forex? There is a saying: there is true, #% & * @ true and statistics. It is also said that if we go out with a dog for a walk, statistically, each of us has three legs. This shows that statistics, at least this simple one, provides enough information that is often meaningless. Even more disastrous is blind faith in myths that are repeated by others without thinking about their logic. This article will bring you the truth about telling 5% of the earning traders on the Forex market.

95% of people playing Forex lose

Reading online forums or browsing dedicated pages Forex market surely each of you has encountered such a "statistic". It is known in psychology that in a sentence that contains a quote or statistical data (or simply a value expressed as a percentage), it is automatically considered true or at least more reliable. Hence, one sentence spoken by someone was probably duplicated by other people and this is how the most popular myth about the currency market was born. There are no reliable statistics (or at least for 7 years I have never come across them) that would confirm that only 5% of traders earn. However, there are other data available, which I will present below.

Of course, I'm not going to charm anyone that by investing (or speculating) on ​​currencies, everyone or even most will earn. It is quite a difficult market that requires proper preparation, knowledge and, above all, experience, but it can only be acquired in one way - by trying.

Myths aside, time for facts

KNF (Polish Financial Supervision Authority), or an institution that supervises our Polish financial world, once in a while publishes a communication in which it contains information on the percentage of investment accounts from Polish brokerage houses that achieved profit / loss in a given year on the Forex market. The message is difficult to treat as a report because it contains only these two modest information, but it already shows that it is not as bad as it is often heard.

Contents of the message:

The supervisory survey conducted by the Office of the Polish Financial Supervision Authority (UKNF) among domestic brokerage houses offering clients the opportunity to invest on the forex market within online trading platforms shows that in the period from 1 January 2011 to 31 December 2011 about:

- 82% of active clients using online forex trading platforms have suffered a loss,

- 18% of active clients using online forex trading platforms have made a profit.

Source: www.knf.gov.pl

The data for 2012 are very similar and the difference is only 1% in favor of the earners - ARTICLE GAZETA PARQUET

CFTC (Commodity Futures Trading Commission), the American equivalent of our KNF in the years 2011-2012 regularly published quarterly statistics on the profitability of traders on the currency market of the largest FX brokers operating on that market. These statistics are a bit more extensive than ours, but I still rate them as scanty. After all, they also disprove the myth of 95% losing.

Sample studies:

• 4th quarter of 2012
• Third quarter 2012
• II quarter of 2012

All these statistics show that the worst result for one of the brokers was 22,7% of earning accounts, while the best one was over 46%. However, the spread is quite far from these values ​​up to 5%, but you can see how many bills took part in the survey and you can conclude that these data are even credible in this respect.

Statistical distortions

Unfortunately, even the above-mentioned statistical data, which come from reliable sources, provide us with little information that may distort the real realities and we do not really know how the situation looks like.

If someone earned 1 USD during this period, did he actually earn and if he lost 1 USD he lost it? And what if he lost 500 USD but on the account had 2 million USD (loss accounted for 0,025% deposit)?

There are definitely more similar questions-dilemmas, and the longer we think about it, the less we will trust the statistics above. So is it worth relying on them? With the rest to base in what sense? If these 80% or 90% of people lose on FX, does it mean that it is not even worth trying? This would only confirm my words that this market is difficult and miracles cannot be expected when entering it "on the go". If someone is looking for easy and big money here, they will not find it, just like on any other financial market.

You can also compare it. How many young boys dream of becoming a famous footballer? Certainly many. How many of them try and learn to play football? Also a lot. How many of them ultimately become celebrities? Few. However, what part of them was ready to really train hard and strive for the goal set?

Everyone certainly knows the answer.

Purely by calculation, the probability of becoming famous is very small. Only if Leo Messi saw this statistic and did not try to play football, someone else would now be considered the best footballer in the world ...

How much can you earn on Forexie?

This is a very common question asked by novice traders or people who have not even had time to start a demo account but have already heard a lot from their friends. "How much can you earn?" is the wrong question. One should ask "how much can you lose?" The answer to them is relatively simple and is - "wszystko“And in order to be precise it is in some cases even more than just anything.

Of course, there is nothing to think about and think only that we can go bankrupt. You can also earn money. The only limit is we ourselves, and the danger is our ignorance and lack of experience. Very often, novice traders of the swamps are visions of great profits, forgetting the possibility of loss, and this leads to a lack of control over capital and complete forgetfulness about risk management. We want to earn a lot and quickly, and we do not even take losses into account. One should measure forces on intentions and set real goals in relation to the possessed abilities and skills. Then it will be easier to find us in the second, smaller part of the statistics of the losing vs wasting.

There is an apt saying that perfectly describes what I am trying to tell you:

You can earn and 10%, but only lose 000% ...