What is the 90% rule in forex?

The 90% rule refers to the statistic that around 90% of retail forex traders lose money over time. This figure comes from regulatory disclosures where brokers must publish performance data showing most clients end in the red. It highlights the challenge of consistent profitability due to leverage, emotions, poor risk management, and market efficiency. Successful trading requires disciplined strategies, small position sizes, and treating forex as a business, not gambling. The rule serves as a reality check for beginners chasing quick riches.