Some reports suggest that up to 95% of traders lose money in the speculative retail markets.
The extreme emotional polarities of fear and greed that a trader may be subjected to can create an intense inner turmoil unparalleled by any other activity on earth. It is for this reason that we spend so much of our time teaching and training our students how to transcend the emotional oscillations perpetuated by the collective market mind.
In the absence of emotional neutrality and objectivity, it will be nearly impossible to generate any degree of consistent profits in trading. Indeed, the only way to make money in the first place is to pull out of the fear/greed cycle and observe the collective market mind from an objective standpoint. Then (and only then) can you act on the side of probability by capturing the minor market inefficiencies that fall few and far between.
For this reason, if you suffer from a diagnosed mental illness where you find it difficult to remain emotionally stable, we suggest you do not place more than 10% of your liquid assets into a forex account. Ideally, you will elect to skip the teachings on forex and move swiftly toward a 100% passive/defensive investment portfolio.
For everyone else, is a 5% success rate something to be put off by?
It depends if you have a top 5 percenter mentality. Take a look around, how many people in life really succeed? What percentage of people do you know who can say they wake up every morning to a deeply fulfilling life? I dare say it would be around 5%, if not less. Does this mean you should give up on fulfilling life itself? Of course not.
Whether it's sports, performing, art, music or life itself - usually only a very small percentage of people succeed, while the others are left in the dust.
Ensure your speculative forex trading activity is balanced and offset by a passive investment portfolio. Always know your risk. Keep it real. Keep it sensible.
If you don't believe you have what it takes to become a top 5 percenter, don't take up trading.