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Or he has or wants to set up a prop shop. :D

Exactly. The study more specifically said that only 1 in 26 traders followed 'netted' anything, and that 70% would lose everything in short order. So, one could slowly bleed to death, realize it's not working, and salvage the remains of their account by ceasing day trading - hence surviving.

This is a great study showing that the odds of not blowing up day trading are truly stacked against you. http://www.nasaa.org/content/Files/Day_Trading_Analysis.pdf

I'm getting fan mail. Apparently, merely posting this study is pissing some people off. I wonder why? :cool:

My favorite part - "Conclusions (Day Trading) There was only one successful day trading account in the 17 accounts analyzed. Fifteen of the 17 accounts analyzed had a significant risk (probability of ruin over 27.6%) of losing all funds. Eleven of these 17 accounts had a 100% chance of...

"Conclusions (Day Trading) There was only one successful day trading account in the 17 accounts analyzed. Fifteen of the 17 accounts analyzed had a significant risk (probability of ruin over 27.6%) of losing all funds. Eleven of these 17 accounts had a 100% chance of ruin. That is, 65% of...

"Day trading is particularly risky. While the study found that three (3) accounts in twenty-six (26) could successfully conduct short-term trading, there was only one successful day trading account. A Sharpe Ratio analysis of the only account considered successful in both short-term and day...

You must've had a couple big beefy burritos with jalapenos, chief, b/c I'm not seeing anything on BBC or anywhere else. Link it if you see it. Thanks.

I'm not saying I agree with these researchers or their thesis. I'm not saying I disagree with their general conclusions, either, as well. I wanted to put this out there for some who may not have seen a single statistical study on probabilities, yet. That's all. Also, the chart...

-CONTINUED- The next demon our day trader will have to confront is the decision of what to do if the trading account grows on schedule, thereby affirming the validity of the research. If the original capital of $10,000 has grown to $20,000, the chance of being ruined by trading in $1,000...

The Electric Day Trader and Ruin How probability oppposes short-term investors. Charles V. Harlow, DBA, and Michael Kinsman, PhD, CPA http://gbr.pepperdine.edu/994/traders.html Day trading is extraordinarily risky. Mark Twain’s cat, having sat upon a hot stove lid, will never again...

-CONTINUED- The next demon our day trader will have to confront is the decision of what to do if the trading account grows on schedule, thereby affirming the validity of the research. If the original capital of $10,000 has grown to $20,000, the chance of being ruined by trading in $1,000...

The Electric Day Trader and Ruin How probability oppposes short-term investors. Charles V. Harlow, DBA, and Michael Kinsman, PhD, CPA http://gbr.pepperdine.edu/994/traders.html Day trading is extraordinarily risky. Mark Twain’s cat, having sat upon a hot stove lid, will never again...

Did they rob you blind, too? If not, why? If so, how'dya let that happen? We anxiously await your words of wisdom.

I love it. Volatility is finally starting to pick up. It's been a while.

All you need to know: Day Trading is devastating to your wealth and health. "The most interesting finding of Odean's research is that traders underperform as a group even after taking out trading costs. On average, the stocks these traders sold outperformed the market, and those they bought...

Rio Agrees 33% Iron Ore Price Cut With Nippon Steel http://www.bloomberg.com/apps/news?pid=20601081&sid=a1OEBZk17WXM&refer=australia

Hottest Oil Options Show 18% June Drop as OPEC Cheats, Storage Tanks Bulge http://www.bloomberg.com/apps/news?pid=20601087&sid=am1tRsWVbKe4&refer=home

There will be virtually nothing left to fish from the seas by the middle of the century if current trends continue, according to a major scientific study. http://news.bbc.co.uk/2/hi/science/nature/6108414.stm

Time/Date stamp it. May 26, 2009 I think this will be the month where everything spirals out of control. There will be a rush into the dollar and U.S. Treasuries from all over the world. Once this happens, there's no easy way to reel it in, and no amount of jawboning, even eloquent...