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>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?
Some newer info indicates the stats haven't changed much from the older
studies quoted in another post. I assume the results at other
brokerages are no different; these 3 are either the only ones contacted
or the only ones honest enough to answer.
>From 4/94 Worth magazine's online site:
'.... “Our own numbers show that 90 percent of individual futures
traders eventually lose money,” says John Frawley Jr., president of ML
Futures Investment Partners, a
subsidiary of Merrill Lynch, the nation’s largest brokerage firm.
“It’s not a pretty picture.”
Discount brokers who earn much of their income from individual
commodities speculators, and therefore have an interest in getting
individuals to speculate, share this bleak view. “Nine out of ten
discount
customers in the industry lose money,” says Steven Greenberg,
president of Alaron Trading Corp. “It’s very unfortunate.” William
Mallers Jr., president of the Chicago futures-trading firm First
American
Discount Corp., says 80 percent to 90 percent of his firm’s 9,400
customers have lost money trading futures, and they keep losing it. “Our
customers are mostly hobbyists,” says Mallers. “They almost ask for
these odds.” '
BTW, the messages (in the "who makes money" thread) from those who are
successful is encouraging to those of us who are not, yet.
Conrad Bowers
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