Story perspectives
82% of Retail Traders Lose: Secrets of the 1% Revealed
11/15/2025
34 5
1 of 1
Story summary
- A 2023 study analyzed over 25,000 retail traders and found 82% lost money.
- Losses arise from poor risk-reward ratios, with average wins at +1.2% and losses at -2.8%.
- Successful traders, the "1%," manage risk by cutting losses quickly and letting winners run.
- They embrace discomfort and focus on high-quality trades rather than frequent ones.
- Average traders are hindered by loss aversion, while the 1% view discomfort as a signal.
