How many traders are actually making a living?

O

orbit23

According to broker reports, around 80% of retail trading CFD are STRAIGHT UP LOSING. And even this seems like an optimistic number.

I would say:
if 80% are losing
----another 10% are just getting by and not losing(breakeven)
--------5% are making some money
------------4% are making a living
-----------------1% are ballers


What do you think? Or is there any sophisticated data on the topic with more details?
 
orbit23 said:
According to broker reports, around 80% of retail trading CFD are STRAIGHT UP LOSING. And even this seems like an optimistic number.

I would say:
if 80% are losing
----another 10% are just getting by and not losing(breakeven)
--------5% are making some money
------------4% are making a living
-----------------1% are ballers


What do you think? Or is there any sophisticated data on the topic with more details?
More...

Less than 4% are actually making a living...
 
As i was checking through the other thread, someone said 1% is the number of people making a living. Seems kinda realistic to be honest.

dozu888 said:
brokerage industry stats - 1% of retail accounts make enough to live on...
More...
 
orbit23 said:
As i was checking through the other thread, someone said 1% is the number of people making a living. Seems kinda realistic to be honest.
More...

And how many of them do that consistently year after year? Some are just playing a temporary bull market (cryptos in 2017, dot-com stocks in late 90s, dip buyers and option sellers in stock bull markets...until there's a 20%+ crash that wipes them out, etc.)
 
It doesn’t matter if the number is 1percent or 5percent. It’s very small.

It’s obvious why the number should be small.

Trading to earn is already difficult. But trading as a retail trader trying to make it their primary source of income is fraught with lots of headwinds.
 
1%? I like those odds - sign me up!

If you are well capitalized, with a few years of living expenses, and about 5-10 years of experience than the success rate rises. The stat's count every noob that put $100-$500 into a Fx or penny stock acct and made a 1-3 month run at it with no experience & unrealistic expectations.

The typical background of an independent trader making a living is they first put together some decent operating capital from investing & trading over the long term while working full time. Their trading business is funded from profits they already made - a positive feedback loop.

The bull market is attracting many trying to make a living upside down - they hope to make a lot of profits with a little bit of capital & experiencing, they think they will be the exception in not having a long & expensive learning curve. This is your 99% crowd, no wonder.
 
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focus.jpg


https://www.investopedia.com/articles/active-trading/053115/average-rate-return-day-traders.asp
Since most day traders do not disclose their trading results to anyone but the IRS, an exact answer to how much money an average day trader makes is impossible to answer. The results vary widely given the trading strategies, risk management practices and the amount of capital individual traders are working with.

STARTUP FAILURE RATE STATISTICS

Of all small businesses started in 2014:
80 percent made it to the second year (2015);
70 percent made it to the third year (2016);
62 percent made it to the fourth year (2017);
56 percent made it to the fifth year (2018).
https://smallbiztrends.com/2019/03/startup-statistics-small-business.html

3 requirements for success

You must believe the reward (the ‘WHY’) of a particular goal is important, meaningful, and compelling.
You must believe that you know how (clear strategies/plans/people) to achieve your goal.
You must believe that you can execute the plans, strategies, and pivoting involved in achieving the goal.
https://www.theladders.com/career-a...success-according-to-science-and-billionaires

What Are Success Factors?
By: Bplans Glossary

Primary success factors include considerations regarding:

The choice of business based on the status of the market
Education and experience
People and collaboration
Creativity and innovation versus business skills and networks
Incubation potential
Leveraging available resources
Management practices
https://articles.bplans.com/what-are-success-requirements/

trading is less risky than music business, or family farming imho.

.
 
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