The internet is full of statements by so called experts. In this series called Myth Busting we take a look at a number of commonly held beliefs in the market place and query our database to see whether these statements/beliefs are FACT or FICTION.
PsyQuation is in unique position to provide a definitive voice on this subject with one of the largest retail FX research databases. We have tried to remain as impartial as possible to the outcome and simply let the results speak for themselves. Let’s get started.
|Date Range||20 Oct 2008 — March 2018|
Profitable trader’s last longer than losers
You would certainly be normal to think that winning/profitable traders accounts will last longer in age than losing accounts. But who said trading performance is normal. These results were certainly unexpected.
The median lifespan of profitable accounts is 71.8 days compared to 144.8 days for losers. It may be that winning traders are worried that their funds are at risk with a broker and that is the reason for winning traders to close their account, i.e. to avoid counter party risk.
I personally don’t believe this is the reason, I class this statistic as an unexplained anomoly.