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According to Teweles and Jones in "The Futures Game, 2nd Ed.", pg 319. Ross
studied 2637customers chosen at random from a large brokerage house during
1970-71. "The total losses after commissions of the sample group exceeded
the total profits of the winners by more than double. The losing group
actually showed net profits of $2.6M before commisions but was overwhelmed
by total commissions approximating $8M."
>From the same book, Hieronymus reports "Except for a few big losers and
fewer big winners, the clients of the commission house tended to pass money
back and forth, paying commissions in the shuffle...Regular (frequent)
traders paid...90 percent (of the commissions) which strongly suggests that
the regular traders relieved the one-time traders of their money and then
deposited it with the firm in the form of commissions."
Stewart, in 1949, found that "The overwhelming conclusion from the general
summary is that the vast majority (75%) of the speculators lost
money...Speculators were not discriminating--they lost in every commodity,
consistantly and impressively."
->Somewhere there is a statistic which says 9 out of 10 futures traders blow
>out in the first year and quit. Anybody know the source of this stat?
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