The 90% rule in forex is an informal saying that highlights how difficult trading can be for most participants. It suggests that around 90% of retail traders lose about 90% of their capital within 90 days. While the exact numbers are not scientifically fixed, the rule captures a real pattern seen across many retail trading accounts.

The main reason behind this outcome is not market manipulation or bad luck, but poor preparation. Many traders enter the market without a tested strategy, realistic expectations, or proper risk management. Overleveraging, emotional decisions, revenge trading, and ignoring stop losses quickly drain accounts. New traders also tend to focus on profits first instead of learning how to protect capital.

The 90% rule is often misunderstood as a warning to avoid forex altogether. In reality, it is a reminder that trading is a skill, not a shortcut to easy money. The remaining 10% are usually traders who treat forex like a business. They manage risk carefully, accept losses, stay patient, and focus on consistency rather than quick gains.

Understanding this rule early can be an advantage. It encourages discipline, education, and realistic goals. Traders who respect risk, control emotions, and commit to continuous learning give themselves a real chance to avoid becoming part of the 90%.