The odds of day trading yourself to a profit are lower than you expect"

[lawrence-lugar]

The odds of day trading yourself to a profit are lower than you expect", Aug 19, 2016
An analysis of trading-platform data shows that 80% of day traders are unprofitable over the course of a year"

http://www.marketwatch.com/story/th...a-profit-are-lower-than-you-expect-2016-08-19

This shouldn't really surprise anyone -- like anything in life...only a select small few will really succeed at their endeavors.

 

[JesseJamesFinn1]

The odds of day trading yourself to a profit are lower than you expect", Aug 19, 2016
An analysis of trading-platform data shows that 80% of day traders are unprofitable over the course of a year"

http://www.marketwatch.com/story/th...a-profit-are-lower-than-you-expect-2016-08-19

This shouldn't really surprise anyone -- like anything in life...only a select small few will really succeed at their endeavors.

Robert Green CPA has stated in his writings most profitable traders were making $30,000 per year. Notice I said "Most profitable traders" which leaves a small margin for people making above the amount of $30k. You know why people lose money day trading, they get arrogant and refuse to accept what the Market is offering after periods of great feeding at the troughs.


I heard from a friend at one of the biggest brokerages that Option Traders are blowing up faster now than in the past, why do you think that is? He's head of the Options Trading Team for one of the biggest companies. I know the answer, anyone want to give it a try why Option Traders are blowing up faster now than three years ago?

 

[hoffmanw]

Trading is alot like running a business. Over the years, I have observed probably 95% of business startups failed within five years. The ones who is thriving making millions of dollars each year is having some sort of secret formula or recipes. Most likely they have spent years and years of research and study developing their products. One guy told me that when he developed a product for the market, he wrote down his thoughts and study in a book. He is quite successful. He owns couple condos in UWS Manhattan NYC and Europe. He said if someone stole his book and used it to create products, most likely he will be a mult-millionaire in couple years.

He wanted to show my his book, but he said he forgot where he put it.

 

[AbbotAle]

Even if the odds are 95% against that still leaves probably a million+ profitable traders around the world so NEVER think it's impossible. Impossible means there would only be a few, but there are many.

 

[lovethetrade]

Robert Green CPA has stated in his writings most profitable traders were making $30,000 per year. Notice I said "Most profitable traders" which leaves a small margin for people making above the amount of $30k. You know why people lose money day trading, they get arrogant and refuse to accept what the Market is offering after periods of great feeding at the troughs.

Yeah, you need a similar score to GPA of 3.7-3.8 at University to be successful at day trading. If all you needed was a GPA of 3 then everyone would be doing it and making money.

I think traders in the top 20% would be making between $500-$1,000 per day on average but this would be largely influenced by account size.

Traders in the top 20-30% have inconsistent earnings but are still profitable and would be making $100-200 per day on average.

A large number of traders (top 30-50%) would break even on average and give up.

The rest (top 50-100%) would blow up and keep trying until they fall into a more successful group or find another job.

 

[DallasCowboysFan]

That just reconfirms what I have always heard......

90 percent of traders lose 90 percent of their money within 90 days.

and

80 percent of people lose their initial investment, 10 percent break even and the remaining 10 percent make the money the 80 percent lost.

 

[Mtrader]

Yeah, you need a similar score to GPA of 3.7-3.8 at University to be successful at day trading.

Then there is a problem: I never went to university and am nevertheless (very) successful in trading.
Before I became fulltime trader I was treasury manager in a billion dollar company and a few of the people working under me had university degrees. But I got the job, not they. The company was not happy when I left to start trading fulltime.

One of my children, who has no university degree but a degree just below that in biochemicals, has a very high position at Johnson&Johnson (medical division), responsible for people all over the world. She reached this level when she was in her early 30's. When she started she was the only one in the department without a university degree. They took her because of other important qualifications (that had nothing to do with being female, so no vaginal promotion) .

I still meet people from my last job. They have university degrees in economics, one even has a doctors title. I help them with trading. None of them is, after several years, able to make any money. They even tried to work together as a group and share all their "knowledge". Even with a few valuable hints from me they still are nowhere.
Trading has nothing to do with a university degree. If you think that you made it because you have a university degree, you are wrong. Life will teach you that there is no one on one link between this degree and your salary.

In trading probabilities are important because they can help you making money. In deciding wether to become a trader or not, probabilties are useless. So don't care if 90% never make money. In every area where there are succes stories, the majority will never have succes. That's the "defintion" of succes: achieve something most cannot achieve. If not it would be called mediocre.

 

[lovethetrade]

Then there is a problem: I never went to university and am nevertheless (very) successful in trading.
Before I became fulltime trader I was treasury manager in a billion dollar company and a few of the people working under me had university degrees. But I got the job, not they. The company was not happy when I left to start trading fulltime.

Yeah, I was simply using GPAs as a comparison for the level that's required to be good at this specific skill. Sorry, if I confused this with "you had to be able to achieve that GPA score at university to be good at trading".

Just because you didnt go to university and are good at trading doesnt mean you wouldn't have been good at post-graduate studies also and of course, there'll be people that have degrees that are terrible at trading and vice versa for people with no no degrees. People with degrees have a tendency to over-complicate things and I don't think that's an advantage when it comes to trading.

I see your point re no correlation between success and academic qualifications.

 

[TKOSTA74]

The odds of day trading yourself to a profit are lower than you expect", Aug 19, 2016
An analysis of trading-platform data shows that 80% of day traders are unprofitable over the course of a year"

http://www.marketwatch.com/story/th...a-profit-are-lower-than-you-expect-2016-08-19

This shouldn't really surprise anyone -- like anything in life...only a select small few will really succeed at their endeavors.

Your article is misleading

the stats come from a broker called etoro
etoro is a bucket shop, market maker that provide cfds to its customers.(note ,cfd's are illegal in america as it is considered gambling) they are not direct exchange.its also called spread betting and is not taxed in the uk because they also consider it gambling.
so what is my point. a good trader will not consider to join etoro rather, they attract the plebs with a minimum of a hundred dollars deposit to trade.so only 1st timers,amateurs and wannabes are their.
case closed

 

[Mtrader]

You're missing the point which you might not have had you been to university

I was simply using GPAs as a comparison for the level that's required to be good at this specific skill. Sorry, if I confused this with "you had to be able to achieve that GPA score at university to be good at trading".

I did not miss the point, you did not specify correctly. Did not learn that at the university?

Just because you didnt go to university and are good at trading doesnt mean you wouldn't have been good at post-graduate studies also and of course, there'll be people that have degrees that are terrible at trading and vice versa for people with no no degrees.

So basically you say that there is no absolute link between university and profitable trading. Which is the opposite of your first posting?

There are four different combinations possible:

• university degree and have skills for trading
• no university degree and have skills for trading
• university degree and have no skills for trading
• no university degree and have no skills for trading

Only the combinations with "have skills for trading" will be profitable,with or without university degree.

You will NEVER learn the skills you need at the university. Some of these skills also have to do with you personality, caracter, control of emotions and stress... So not really part of a university education.