Myth: Trading is extremely challenging, and most people do lose money—some research suggests as high as 97%. While this is true for many, success in trading is more about making informed choices than raw intelligence.

By educating yourself with the right resources and developing a solid, strategic plan, you can significantly increase your chances of success.

Fact: Trading is extremely risky.

A 2019 study revealed that out of 19,646 individuals, 97% of day traders lost money within their first 300 days of trading. Since trading is a zero-sum game, this means also suggests that most traders fail because they make the same critical mistakes.

Myth: You can begin trading with as little as $1000.

The general rule in trading is never risking more than 1% of your capital on a single position.

For instance: the tick size of a Micro E-mini Futures contract is $1.25. If you set your stop loss 8 ticks below your entry point (1.25 × 8 = $10), you’re risking $10. This matches the 1% rule if your total capital is $1,000.

Pattern Day Trader Limitation (US): FINRA requires anyone who executes 4 or more day trades within a 5-business-day period using a margin account for equities or stock options to maintain a minimum balance of $25,000.