Why are more than 95% losers in transactions?

thank you

First of all, I personally think that if the statistics are extended over a longer period of time, the absolute ratio will be higher in 5 or 10 years, and 99% or more of 99.9% are losers.

So why do so many people lose money in trading? There are mainly the following factors:

1. Threshold factor: The threshold to enter this industry is too low. No matter what kind of person or occupation they are engaged in, as long as they are willing, have a computer (even if they don’t need a computer, a mobile phone will do), and put in some money, they can trade. . We observe the thresholds of other industries in the society. Generally speaking, the higher the threshold, the easier it is to make a profit; while the lower the threshold, it means fierce competition and a high elimination rate.

2. Professional knowledge factor: We all know that to become an expert in a certain profession (such as a lawyer, doctor, etc.), you must not only learn relevant knowledge in school, but also go to relevant units for internship after graduation, combining theory with practice. It takes almost ten years to practice and practice until you finally become an expert. And most people enter the market without any relevant knowledge, and it is normal to lose money when they start trading, not to mention that trading is known as the most difficult industry in the world.

Three, the "success formula" factor: Basically, most industries have a "success formula", that is, as long as you learn relevant knowledge and work hard, you can be proficient; that is to say, each industry has a clear The road to success (success mentioned here does not refer to fame, but proficiency), only the trading industry does not have this standard. There is no school offering the major of "trading". It's just that in recent years, some schools have taught some related knowledge. However, the quality of some training institutions in the society is also uneven, and you have no way of identifying their authenticity, so there is no easy way to obtain relevant professional skills that can really make a profit. And this business does not mean that as long as you work hard enough, you will definitely be able to make a profit. It also requires factors such as talent and opportunity.

Fourth, human factors: trading can easily involve the weakness of our human nature - greed and fear. Although other industries may also be involved in one of them, there are relatively few that involve both of them at the same time, and these two points are deeply rooted in human nature, which is very difficult to overcome, and it is even more difficult to overcome at the same time.

5. Leverage factor: There is a popular saying in the stock market that seven loses, two equals and one earns, that is to say, in the stock market without leverage, only 10% of people make money; while in the trading market, 100 times, 200 times, 500 times thousands of times Leverage is everywhere. Although some people don’t use such a high leverage ratio, there are generally dozens of times, and the risk has increased by dozens or hundreds of times, and the weakness of human nature has also been sharply exaggerated. Dozens or hundreds of times, it is normal to lose money in the end.

Sixth, the time factor: Although the "10,000-hour rule" that everyone says is not necessarily true, it basically makes sense. As mentioned above, it usually takes ten years for an expert in each industry to hone it; But for trading, how many people can have such a strong will and perseverance, hone in this career and persist for such a long time without giving up? And even if you are willing, will your family and your significant other be willing to wait and support you? Even if the traders themselves are willing to persist, many of them fall before dawn due to the opposition of their family members or other objective factors.

To sum up, it is normal that most of the foreign exchange transactions are losers.

So it seems that the transaction is a "point of no return"? It is no exaggeration to say that it is.

Isn't it better to give up as soon as possible? To be honest, it is. unless--

You really love trading, it has become your "blood", and you are willing to work tirelessly for it, and you must also be prepared for a long-term war of resistance. It's better to keep oil and water for yourself.