...90% of Stock Market Traders are in Loss...
How much sustainable, repeated profits are available for the 10 to 20% of traders who are successful? Savvy, winning traders are rare but they do exist, and - unlike gambling - you have a real chance to win long-term since you are competing against other traders.
Don't day trade, you're going to lose your money = Good advice for you and many others, but a horrible thing to say to a young person with potential to enjoy a great career as a successful trader and investor.
Topic: Don't day trade, you're going to lose your money (Read 29 times)
This is not new on this trading discussion. We all the time warn people to trade with the amount of money that they can afford to lose. I have posted many times before on the trading discussion on this forum about how 85% or more of traders that are losing. There is nothing new about this.
Hope your money is not going to gambling also because I think you lost huge amount of money while trading recently.
This image also shows that you were never an active poster on trading discussion board on this forum. I noticed that I did not noticed anything relevant about trading about you before on trading discussion. I know the good trading discussion posters and they are not many.
Hope your money is not going to gambling also because I think you lost huge amount of money while trading recently.
This image also shows that you were never an active poster on trading discussion board on this forum. I noticed that I did not noticed anything relevant about trading about you before on trading discussion. I know the good trading discussion posters and they are not many.
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I am opening this thread as opposed to all the publicity you have received about day trading. It is a very falsely marketed activity, on a par with MLM businesses, with the difference that the latter tend to advertise in smaller niches.
So let's see why if you're thinking of day trading you'd better not do it because you're likely to lose your money, everything and more. The longer you trade the more likely you are to lose, and if you use leverage you will lose it quickly.
The following article is from a reliable source and refers in general to traders, not specifically day traders:
Why 90% of Stock Market Traders are in Loss?
But I would like to highlight one paragraph that reinforces the idea that frequent trading is counterproductive:
Here we have two ideas:
1. Transaction costs. Every time you make a trade you pay a fee, which works against your profitability. There are brokers that claim to charge no or very small fees, but then they tend to have a wider spread.
2. The psychological aspect, which is more difficult to master the higher the frequency of trades.
Let's see more reasons:
3. Time and Experience. Although advertisements and trading houses sell you the idea that with a little training you will be able to start earning money comfortably from home, the truth is that being a successful trader requires a lot of time, study and practice.
4. Mathematical impossibility if you start with a small capital. The idea that you are going to start with $100 and be able to reinvest it until you make it a large capital or that you are going to be able to get a monthly income from it clashes with the mathematics. The smaller the capital and the bigger your aspirations, the more likely you are to lose it all and the faster. Just ask someone who knows real finance, not someone trying to sell you a course or shitposting on bitcointalk.
5. There is no guarantee of success, even with training and practice time. Those who sell you trading courses earn more by selling courses than by trading themselves.
6. Survival bias distorts perception. Success stories are often seen because those who fail simply disappear and do not tell about their experience.
In another thread I commented that Warren Buffet, who is known as the world's greatest living trader, has earned an average annual return of just over 20%, over a sample of decades. He says that if he worked with small capital he could make a return of 50% per year. That's something like 0.136% daily return, but also ask yourself: why is no one as famous as Buffett a day trader? The answer is very simple.
So let's see why if you're thinking of day trading you'd better not do it because you're likely to lose your money, everything and more. The longer you trade the more likely you are to lose, and if you use leverage you will lose it quickly.
The following article is from a reliable source and refers in general to traders, not specifically day traders:
Why 90% of Stock Market Traders are in Loss?
But I would like to highlight one paragraph that reinforces the idea that frequent trading is counterproductive:
Quote
Overtrading: Buying and selling too much might raise transaction costs and lower total returns. Impatience or the desire for rapid profits frequently lead to overtrading, which negatively impacts portfolio performance.
Here we have two ideas:
1. Transaction costs. Every time you make a trade you pay a fee, which works against your profitability. There are brokers that claim to charge no or very small fees, but then they tend to have a wider spread.
2. The psychological aspect, which is more difficult to master the higher the frequency of trades.
Let's see more reasons:
3. Time and Experience. Although advertisements and trading houses sell you the idea that with a little training you will be able to start earning money comfortably from home, the truth is that being a successful trader requires a lot of time, study and practice.
4. Mathematical impossibility if you start with a small capital. The idea that you are going to start with $100 and be able to reinvest it until you make it a large capital or that you are going to be able to get a monthly income from it clashes with the mathematics. The smaller the capital and the bigger your aspirations, the more likely you are to lose it all and the faster. Just ask someone who knows real finance, not someone trying to sell you a course or shitposting on bitcointalk.
5. There is no guarantee of success, even with training and practice time. Those who sell you trading courses earn more by selling courses than by trading themselves.
6. Survival bias distorts perception. Success stories are often seen because those who fail simply disappear and do not tell about their experience.
In another thread I commented that Warren Buffet, who is known as the world's greatest living trader, has earned an average annual return of just over 20%, over a sample of decades. He says that if he worked with small capital he could make a return of 50% per year. That's something like 0.136% daily return, but also ask yourself: why is no one as famous as Buffett a day trader? The answer is very simple.
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