The $5 Trillion Answer No One Wants to Hear

Unbelievably, the average individual forex trader loses 3% per week.

I found that shocking statistic in The Wall Street Journal yesterday.

Combine that with what I told you last week:

We review...
all the fears and anxiety
...which are so
inherently symptomatic...
...of a losing team.
The mind is a strange thing, men.
We must begin by asking it...
...”What is losing?”

Losing is a disease... contagious as polio.
Losing is a disease... contagious as syphilis.
Losing is a disease... contagious as bubonic plague...
... attacking one...
... but infecting all.
Ah, but curable.
— Two-bit carny hypnotist, The Natural

An observational study of 12 million actual forex trades made in the course of one year showed that traders’ losing trades are 80% larger than their winning trades.

The Wall Street Journal sums up the situation:

“The National Futures Association ... found that 72% of individual forex accounts were unprofitable and that the average life of an account was only four months.”

Four months?

In the words of the late Harry Carey, holy cow!

Despite the unfortunate proportion of losing traders, forex remains a $5 trillion market, all that money changing hands faster than we can imagine. So I have to ask:


The $5 trillion answer ...

No one wants to admit they lose.

“I lost $2,000 on a stupid euro trade last week because I was wrong about their inflation numbers.”

“I got killed on USD/CAD because I guessed wrong on the Canadian employment report.”

“The Bank of Japan added stimulus money to their economy and I got clobbered in JPY because I didn’t have a stop-loss in place.”

You probably don’t hear traders say things like that even though there is no shortage of losers out there.

People don’t want to talk about losing because losing carries a stigma. Losing suggests you’re wrong. And you don’t want to be wrong. In our own minds we equate being wrong with being inferior, inept or just plain dumb.

If you harbor thoughts like that, your trading account will surely be wiped out in four short weeks.

It’s why I told you yesterday to get your mind right. And last week I said you don’t have to know – or even think you know – what’s going to happen in the market in order to make money.

You must accept that losing is an integral part of trading. And managing losses is an integral part of success.

The Wall Street Journal article even acknowledged this.

I share this with you so you acknowledge it too. And so that you might do something about it.

Easier said than done. I get it.

It took me many years to develop a disciplined systematic approach that wins by keeping my personal rationalizations from sabotaging my success.

So I offer you my service, Black Swan Forex.

And I also want to offer you a way to further straighten your path to forex profits.

I’m rounding out a working relationship with a reputable firm. I’ll share the details with you later this week. But consider the arrangement a way for you to get all the success of Black Swan Forex without requiring your constant attention.

It will be like having your own personal money manager at a tiny fraction of the cost.

Until then, trade smart, learn from your losses and stay tuned.