"80% of traders lose money."
- Thread starter prototrance
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Quote from BadCo:
A friend who owned a B/D during the daytrading craze of the 90s, also gave me the 95% stat.
I'm sure some make money, but, there's too much working against the Joe Schmo day trader for the percentage to be much higher.
Of course, on the internet, everyone cleans up.
Ask any broker and they will come up with that +95 % stat
I didn't read this thread just the title.
Whether or not the 80% figure of traders losing money is accurate or not I don't know. I don't really care. I expect it is much higher than 80%.
The reason is trading/investing online attracts any and every loser that has failed every where else in life. I saw the beginnings of this with the advent of online trading going several decades back even prior to the internet.
They couldn't succeed in other disciplines and they gravitate to trading.
If the people who become traders had a high level of intelligence and outstanding analytical skills .....why aren't they working on Wallstreet? Why aren't they Doctor's, Lawyers? Accountants? Engineer? Nasa Scientists?
The ease of Online Trading attracts all sorts. Fact is many traders that come to this profession do not have the analytical skills and intellectual abilities to succeed at a higher professional level.
Many have not been able to complete a community college education. They won't succeed as traders.
Whether or not the 80% figure of traders losing money is accurate or not I don't know. I don't really care. I expect it is much higher than 80%.
The reason is trading/investing online attracts any and every loser that has failed every where else in life. I saw the beginnings of this with the advent of online trading going several decades back even prior to the internet.
They couldn't succeed in other disciplines and they gravitate to trading.
If the people who become traders had a high level of intelligence and outstanding analytical skills .....why aren't they working on Wallstreet? Why aren't they Doctor's, Lawyers? Accountants? Engineer? Nasa Scientists?
The ease of Online Trading attracts all sorts. Fact is many traders that come to this profession do not have the analytical skills and intellectual abilities to succeed at a higher professional level.
Many have not been able to complete a community college education. They won't succeed as traders.
You really don't know what you are talking about.
This board has some very intelligent and accomplished people (less so now than in the past, but there are still some over-achievers) here on the board.
But their intelligence most definitely does not translate to trading ability. In fact, it really isn't a requirement for exceptional trading.
Discipline, basic gaming theory along with some gambling expereience, common sense, aggressive shark competitiveness and a never-say-die attitude are what's required to win at this game.
Day trading is a zero sum game.
Any zero sum game with no barrier of entry has similar result (90:10)
trading succcess is related to your intellectual and emotional IQ which is a bell curve.
The way you can come to the 90:10 ratio is by looking at the general IQ curve.
In the absense of any entry to barrier,the game attracts people from all the IQ levels. .
BTW, I consider discipline part of emotional IQ.
Any zero sum game with no barrier of entry has similar result (90:10)
trading succcess is related to your intellectual and emotional IQ which is a bell curve.
The way you can come to the 90:10 ratio is by looking at the general IQ curve.
In the absense of any entry to barrier,the game attracts people from all the IQ levels. .
BTW, I consider discipline part of emotional IQ.
I know exactly what I am talking about and the reasons I cited as to why so many wannabe day traders fail is accurate. You didn't grasp what I was saying in my post. Try reading it again.
I never said anything about this board.
This board does have many accomplished individuals.
Sorry but Analytical skills and intelligence is a requirement to becoming a successful trader. The ability to grasp economic and market concepts is also necessary.
I disagree with your last paragraph,"Discipline, basic gaming theory along with some gambling expereience, common sense, aggressive shark competitiveness and a never-say-die attitude are what's required to win at this game."
I never said anything about this board.
This board does have many accomplished individuals.
Sorry but Analytical skills and intelligence is a requirement to becoming a successful trader. The ability to grasp economic and market concepts is also necessary.
I disagree with your last paragraph,"Discipline, basic gaming theory along with some gambling expereience, common sense, aggressive shark competitiveness and a never-say-die attitude are what's required to win at this game."
Not far off the mark chanakya, the other important common ingredient would have to be gold fever!
Also, it's "absence of any barriers to entry!" Although for many would be traders it truly is just like horse racing, only the horses don't even get into the barriers, let alone win.
Best Regards
Johno
What a fool! How about you go into trading because you realize that working for someone is a very bad plan long term because of
a)globalization
b)health care costs
c)possibility of living paycheck to paycheck or with very limited disposable income EVEN if you get an engineering or law or M.D degree
Even with professional degrees there is a very high possibility you are going to be paying off your student loans well into your 40s and maybe later. So if you realize you want to try to preclude existence with a very limited disposable income trading is a natural avenue because it requires certain ability as opposed to blind luck as in gambling.
Not necessarily so. Actually some, myself included, accomplished what I wanted in my prior career and moved to trading for freedom, unlimited income potential, flexibility and a lot more.
And I think I had some intelligence, obtaining 3 degrees and doing fairly well in my prior corporate life.
Sure there are some unfit to pursue trading but each individual is entitled to pursue this endeavor if they have the resources to give it a shot. As with many pursuits in life, some succeed and some fail. Failure was never an option for me.