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Some 82% of traders are still losing money consistently, according to recent intelligence from Chicago-based Jigsaw Trading. Even worse, some traders have been losing consistently for 10 years or more.

The staggering findings were revealed as Jigsaw launched its new daytradr platform this month.

“So far this year, I have met three traders that are still not profitable after 20 years,” says Peter Davies, CEO of Jigsaw Trading. “It is heart breaking when you think about all that time and effort with no reward.”

Jigsaw believe these numbers indicate a problem in the industry. If trading products were ‘fit for purpose,’ more traders would be successful, they argue.

“We see new trading platforms coming to the market every year – but they all do the same thing,” adds Davies. “There’s no real innovation. These platforms do nothing to alleviate the fact that the large majority of retail traders lose money.”

However, traders must also shoulder some of the responsibility for their consistent losses.

For example, Jigsaw found that over 70% of traders do not track their performance at all. Thus, they cannot tell if any changes they make to their strategy has a positive or negative impact.

The daytradr platform

Jigsaw’s new platform, daytradr, is being designed with the loss-making trader in mind, or new traders who are concerned that they will lose money.

Its educational packages are based on proprietary firm techniques and also include a free basic course and an institutional-grade course from a London-based proprietary trading firm. Traders can mix and match the modules on offer to address those areas where they feel their trading needs attention.

Automated forced journaling introduces the discipline of being honest to yourself: trade results are stored online and statistics are available that let you objectively analyse your progress. For those seeking funding, real time trading results can be shared electronically with prop firm recruiters and hedge fund managers.

Accountability comes by way of a leader board, showing traders how they rank against their peers. Ranking is based on consistency before profitability, which is sensible, as it discourages wild risk taking. Social trading is also viewed as important, with a chat room also on offer.

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Stuart Fieldhouse

Stuart Fieldhouse has spent over 20 years in journalism and financial communications, including six years as a wealth management correspondent for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong.

Stuart has worked as head of content at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Stuart continues to work with hedge funds, private banks, stock exchanges and other financial institutions on their communications, data and marketing requirements.

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