Data gathered by Forex School Online reveals that in 2020 72% of forex traders had no prior experience before trading. According to the data, 15% of the traders had profitable outcomes.
Profitable traders have more experience
Most of the traders had an average age of between 35-44 at 28% followed by individuals in the range of 18-34 years old at 27%. The third highest average age group was above 55 years old at 24% followed by the age group of 45-54 years old at 21%.
In terms of experience, the surveyed traders involved in trading forex between one and three years stood at 39%. The second-highest lot had traded forex for less than a year at 31% while 23% of the traders had been trading forex between four to nine years. On the other hand, only 7% of the traders were actively involved in forex for at least a decade.
Consequently, the forex trading experience had an impact on whether a trader is profitable or not. Most profitable traders had an average experience of 5.4 years compared to 2.5 years for unprofitable traders. On self-improvement, a whopping 65% of the profitable traders wanted to work on their mindset and have a good trading plan in place. On the other hand, about 49% of unprofitable traders have their focus on better entries. In terms of time spent on trading, both classes of traders spent an equal time of three hours daily.
The data also overviewed the traders’ aspirations where 64% are focused on getting a higher win rate as opposed to high rewards. Notably, the traders also wish to increase their chances of a high win rate or reward therefore 43% of traders plan on improving their trade rules and plan. On the other hand, 30% are looking to find better trade entries.
Notably, more than half of the traders at 53% have invested in materials to help them in their trading. Such materials entail courses, books, or strategy testers. The remaining 47% have not purchased any material to boost their forex trading. Additionally, during trading, 50% of responders spend their time online reading lessons and watching videos, whilst 8% are part of a group or tribe. 7% of the traders spend their time on social media and forums during a trading week.
Besides 97% of the traders focusing on forex, about 43% trade-in Gold, 24% stock indices, and 9% cryptocurrencies.