When I log onto forums like forex factory, one of the first things I see is people talking about how trading is a scam and impossible, people complaining about how brokers are stealing their money stop hunting, and even crazier, people claiming that trading is just gambling. Now, I am sure at this point, everyone has heard that statistic “95% of traders fail” but that isn’t completely accurate, that applies to 95% of new traders fail, after 1 year of trading, that figure decreases a lot.
- Now, when it comes to trading being gambling, that purely depends on your approach, If you wake up each day, load mt4, then just place trades based on feelings then yes, it is gambling. What you have to do is make sure you approach every day with a plan.
- When it comes to brokers stealing money with stop hunting etc, I have always found that absolutely ridiculous. Stop hunting exists sure, but it has nothing to do with retail traders, whenever you want to place an order in the market, their needs to be liquidity in order to place it, meaning you need a person on the other side of the trade thinking the market will go in the opposite direction. When a big fund wants to place a massive order of 1 billion dollars or something like that, if they just place it without thinking, then there will be slippage, market will move 5-10 or even 20 pips to get the liquidity it needs to place the trade, and that eats a lot of profits for these big funds. So what do they do? They say hey, lots of people have limit or sell orders at that level 10 pips down, so they enter hundreds of million, or even a billion dollar order to push market down 5-10 pips to trigger those orders, then they exit their position and go long that way they can get the best price possible. They aren’t aiming for us, they are going for the orders placed by other hedge funds and big players who have an opposite idea, and the only players who can do things like that, are the absolute huge macro players, no broker has enough money to move the market even 5 pips.
- Also, One big thing to remember about trading is, 95% of traders fail, but studies done show that 60% of all trades made by retail traders are profitable, so how is that possible? The answer is simple, money management. It is very often that people new to trading blow their first, maybe even their first 3 accounts and decide to just give up, I am here to tell you don’t do it. Trading is difficult and hard yes, but it is also one of the most rewarding and amazing careers in the world for those who decide to learn and master the craft. Sure it is difficult and sure there is tons of bad information out there, but if you stick with it, and wade through to find the golden nuggets of information, if you buy books and read, and study, and work hard, then eventually you will find profitability and once you do, it is more the worth all the struggles you took to get there because there is no professional in the world I know of, that can give the freedom that comes with being a great, full time trader.
I hope you all found this valuable, if you have any other reasons or inputs on why people should stick with trading please put it below, I love to hear everyone’s thoughts and comments on topics such as these, and I wish you all great trading!