PsyQuation

[Nick]

A friend of mine is launching a new service to help retail traders identify their mistakes and correct their errors.

The service is known as PsyQuation. The guy behind it, Michael Berman often gives insight into the workings of retail traders and on his most recent update he posted some interesting statistics that I thought I'd share with you.

There is a much quoted statistic that 95% of retail FX traders fail, we thought is was time to provide some real stats according to a database of a few thousand traders.

• Only 22% of traders had profits greater than $0
• The average performance of all traders -22%
• The average number of trades per account 375
• The average account survival 192 days (6 months)
• The average profit per trade $36
• The average loss per trade -$63
• The average trade length for winning trades 60 minutes
• The average trade length for losing trades 120 minutes
• Accounts larger than $10k (blue) do much better than smaller accounts, you can see how many more blue bars you see on the right of the 0% performance along the x-axis.

[mickson]

Hi Nick thanks for the post. Please ask us any statistical question you would like to know about retail FX traders, you can pass this offer to your entire forum. If we don't know the answer from our existing studies we will research it and report back. Regards Mike