Why you generally suck
- Thread starter longandshort
- Start date
Bombay Stock Exchange, huh? Was Padu part of the study?
I don't think there's nothing new in this study. Most would-be traders fail and I'm sure the low barrier of entry is part of the explanation.
I'd say that simply opening a trading account doesn't give you the right to call yourself a trader. A more appropriate description would be idle dreamers with no hope of ever making it and zero understanding of what they're even attempting to do.
Haven't similar studies suggested that there's a select few who actually make money?
I don't think there's nothing new in this study. Most would-be traders fail and I'm sure the low barrier of entry is part of the explanation.
I'd say that simply opening a trading account doesn't give you the right to call yourself a trader. A more appropriate description would be idle dreamers with no hope of ever making it and zero understanding of what they're even attempting to do.
Haven't similar studies suggested that there's a select few who actually make money?
The Bombay stock exchange is actually a pretty deep liquid market.
I know some guys who run quant funds dedicated to it.
yeah. Lots of studies show day trading is a losing proposition. There’s too many hurdles.
I know some guys who run quant funds dedicated to it.
yeah. Lots of studies show day trading is a losing proposition. There’s too many hurdles.
Well according to statistics, only 5 - 10% of the traders are profitable. So out of 1 million traders, assuming 5% is profitable, that's still 50,000. That's not a select few. LOL That's a population of a small town. Imagine an entire town of people, every single one of them is making money trading...
50000 sounds like a lot but you have to put it in persective. If you are trying to cross a busy freeway on foot and only 5 people out of 100 make it are you going to try? 1 in 20 are the odds any worse? How about if 50,000 people make it. Sounds like a lot until you realize it's still only one in 20.
And what are the chances of the one who made it spent some time training and studying traffic patterns?
One study looked at 324 prop firm traders from Feb 1998 through October 1999, in other words a group likely above average in resources, training, dedication, experience, etc. during the heyday of daytrading, before HFTs and in the midst of the dotcom boom. 35% made money, but only 4% made over $50k (over 18 months) and the single highest-earner made $197k. The biggest loser incinerated $750k.
Stretch across the entire market cycle and you'd cull maybe 80% of the winners. In 2023 with more efficient markets and lower barriers to entry, the figures are probably even worse. Even most of those "making money" would be better off flipping burgers.
Your example reminds me of this game (I think is Call of Duty) that Conan O'Brien reviewed in his show. You have to watch it till the end. It's hilarious! Love the guy.