The pain of retail traders – Why do 90% fail?

In the modern financial world, trading is no longer just an investment activity—it has become a hot topic attracting millions of participants. They enter the market with dreams of financial freedom, aiming for passive income and control over their lives. However, behind the glamorous numbers and viral success stories lies a harsh truth: According to deep surveys and real-world statistics, up to 90% of retail traders fail, with many blowing up their accounts within just the first 3 months.

1. Personal trading: a path full of traps and mental pressure

Most retail traders start with small capital, learning via YouTube, blogs, or basic online courses. But several critical issues arise:

  • Lack of solid foundational knowledge: poor grasp of risk management, trading psychology, and effective strategies.

  • Capital constraints and pressure: small accounts but high expectations lead to overtrading or emotional trading.

  • No support system: no mentors, no AI tools, no professional community.

  • Illusion of quick riches: many are misled by “double your account in days” promises.

As a result, 90% of traders cannot sustain long-term trading and either blow their accounts or quit after 3–6 months.

2. What is Prop Trading? A practical look from the community

Prop trading: Trade with firm capital
Prop trading: Trade with firm capital

Prop Trading (short for Proprietary Trading) allows traders to use the firm’s capital instead of their own. Traders go through a structured challenge to prove their skills. Once passed, they’re funded and earn a share of the profits.

  • No need for large personal capital—just a small challenge fee
  • Access to large funds from the prop firm
  • Attractive profit split: typically 70%–90%

  • Professional support: AI tools, performance dashboards, coaching, trader community

3. In-depth comparison: Prop Trading vs Personal Trading

Criteria Retail Trading Prop Trading
Initial capital Personal funds, usually limited Funded by the firm
Mental pressure Very high, emotional trading likely Reduced, focus on discipline
Support system None Mentors, AI tools, community
Career path Unclear, often discouraging Structured growth, coaching available
Profit share 100% of small capital 70–90% of large capital

4. Why Prop Trading is a “lifesaver” for traders

Confident and focused: A successful trader navigates the market with strategy, discipline, and sharp decision-making skills.
Confident and focused: A successful trader navigates the market with strategy, discipline, and sharp decision-making skills.
  • Professional and transparent structure
  • AI tools and continuous coaching
  • Community-driven growth and learning
  • Clear capital scaling roadmap

5. Choosing the right prop firm – what to watch for

  • Reputation, payout transparency, strong community
  • Understand challenge rules: drawdown, profit targets, consistency
  • Maintain discipline and trading psychology
  • Use available tools: dashboards, AI, mentoring
Act now – don’t be part of the 90% who fail!

The numbers show clearly: retail traders don’t fail from lack of passion—but from lack of systems, knowledge, and support. Prop Trading offers the structure to turn individuals into professionals.

Use this moment to pivot your journey. With the right tools, mentorship, and mindset—you can thrive.

AI Prop – Asia’s pioneer prop firm applying AI and blockchain to help individual traders win transparently and efficiently.

📩 Message us now to get support from the #AIProp expert team!

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