According to unofficial information from unverified sources, about 95% of all trading accounts on cryptocurrency exchanges are unprofitable. That is, the remaining 5% share all the profits. It would seem that the chances of success are not that small – at least definitely better than in a casino. In reality, this is not the case. If we try to analyze the structure of these 5% of lucky ones, we will inevitably find that less than 1% of traders actually earn normal money there. The rest of these 5% hover around zero with a small profit. So it turns out that out of 10,000 traders on the exchange, no more than 5 actually earn normally. The picture is not rosy at all.
And how are things in prop firms? The situation is better there – about 30% of traders trade profitably within a year after training. But then, in the second and subsequent years, this percentage constantly decreases. After 5 years, less than 2% of traders remain profitable in prop trading.
The incredibly small percentage of profitable traders on the stock exchange can be easily explained – the vast majority of people there have not been trained anywhere, trade by intuition, try to guess the price, look for some signals, themes, etc. They had no chances from the beginning. But why in prop firms, where all traders have undergone good training and trade in teams with experienced colleagues, do still less than 2% survive over a distance of 5 years?
The most complete and accurate answer to this question can be found from the trader "Caramel Kopytych" (YouTube channel Kopatych Trade). If we try to formulate this concept in two words, it would be something like this (my interpretation):
1. The trader works in a highly stressful environment.
2. In order to maintain adequacy in conditions of prolonged stay in a stressful environment, a trader must possess a set of certain psychological qualities, such as risk tolerance, emotional-volitional control, and others.
3. Most of these qualities are innate. They cannot be artificially cultivated. A small number of people possess the necessary psychological qualities for trading.
If we simplify this idea to a simple metaphor, it would be something like this: you will never be able to become a professional basketball player in the NBA if you were born with a height of 150 cm. That is, the principle of "Work and effort will overcome everything" does not work in trading.
And what should a person who has just entered the market with a firm intention to become a successful and wealthy trader do with all this information? Kopytych advises giving oneself 1 year. In his opinion, if within a year after training a person does not show positive dynamics, then it is better not to waste time and money in vain and accept that trading is not for them. I agree with this, but only with the caveat that one year is not enough. There are plenty of examples where people only began to trade positively and started to earn well after 3-4 years. I myself only started trading profitably after two losing years.
Friends, if you have questions about scalping, I will be happy to answer in the comments. Huge respect for likes and subscriptions!)
Wishing everyone profits!
