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When starting out as a trader, you’ll quickly learn that 90 percent of traders fail to make money in the stock market. Typically, 80 percent of traders lose money, 10 percent break even, and only 10 percent consistently make money.
Interestingly, this statistic isn’t influenced by factors like location, age, gender, or intelligence. Everyone wants to be in the top 10 percent of traders who consistently make money, but only a few are willing to put in the necessary time and effort.
In my presentations, I always ask if people want to learn what the successful 10 percent of traders know or what the other 90 percent do. The answer is always the same: they want to learn from the successful 10 percent. The key to understanding what the successful traders know is straightforward—avoid most of what’s taught in books and courses.
To succeed in trading, you need to do things differently from most traders. This might seem simple, but it's challenging because you don’t know what you don’t know. So, how can a beginner figure out what to do amid so much information?
In this article, I'll explain why most traders fail to make money consistently in the stock market and, more importantly, how you can avoid being part of the 90 percent. I’ll also give you an overview of what the top 10 percent of successful traders do.