For me, those 1% are the traders or investors who fully invested in their knowledge where they fully understand the game, they also know that trading is not just quick rich wherein they have a view of a long term success. Many traders are failing because they want their money to double in just days without focusing in risk management that causing them to lose a lot of money. If you want to stay in the game then focus on your risk management like knowing how to use stop loss, knowing the perfect time of entry and exit.
Mastery is also important wherein you should focus on mastering reading prices, trends also the indicators that you are currently using, there are a lot of traders out there who keep losing because they also do not have any trading system and for me it is a matter.
Topic: Who are the 1% of traders who earn with trading? - page 4. (Read 1034 times)
I think this statistic is referring to retail traders and not professionals aka institutional trading.
The secret is discipline and risk management coupled with a reliable strategy that YOU can follow consistently. The emphasis is on the first two components: the ability to stick to your strategy and do not be distracted by the gains nor by the losses while keeping a solid risk management system in place will make you successful at trading.
Remember that emotions are very hard to control and much harder to master.
The secret is discipline and risk management coupled with a reliable strategy that YOU can follow consistently. The emphasis is on the first two components: the ability to stick to your strategy and do not be distracted by the gains nor by the losses while keeping a solid risk management system in place will make you successful at trading.
Remember that emotions are very hard to control and much harder to master.
Is this only for the crypto market? I think 1% is too low, I really don't think that only 1% survives trading that earned a profit in the long run. I think those other than the 6.5% active traders are mostly traders who come and go when they see an opportunity and don't actively trade.
Can you provide us some context of this research results on how is this conducted, where does the resulting base, and what kind of platform does this research base?
This do talks for sure on active traders success rate on a typical market.Check these links to see on what im saying.Can you provide us some context of this research results on how is this conducted, where does the resulting base, and what kind of platform does this research base?
https://www.tradingwithrayner.com/top-one-percent/
https://www.quora.com/What-do-the-1-of-successful-day-traders-do-that-other-99-dont
This might be the reference on why op been talking about 1% success traders which i do believe we do have more
on this crypto field or market.
This is why many says trading is not profitable at all, well I guess based on the numbers its all about the risk and of course the skills of the traders. Looking at the long term time frame, if you still losing big money then trading is not for you or you just need to improve yourself and learn more. Traders must also know delayed gratification and don’t just think that you’ll get rich easily on this market.
The whales are the 1% trader we are talking about, they don't just trade like the normal traders, but trade when they wants to take profit in the market. We'll know that to be a trader need or require some sort of skills but not in all cases, sometimes traders are most lucky than another but adding the skill bring more advantage. In conclusion "knowing when to exit the market make a trader topnotch" and not necessarily their skills per-se. 
In my opinion, the 1% traders that remain profitable are traders who are passionate about trading crypto, who always learn from their previous mistake, control their emotions, never panic sell, have a reasonable stop loss strategy, never follow hype and know how to select good coins.
Isn't that also about skills & experience which can be learned by you, me, or anyone else reading this? Besides, it's not only about crypto trading, but trading overall - equities, FX, crypto, derivatives, just anything.If you chose to be more patient and always control your emotions when trading, then you can be those 1% who remain to trade successfully after long years in trading.
If the invested coin is good the next thing is to be patient. I guess the reason why some traders don't last in this trading activity because of their thought that trading gives you quick profits and make you a millionaire in just a short period of time which is definitely not true.
That's was the first impression i also had when i joined cryptocurrency and i have made a lot of bad investment decision but learn from it. I find this to be true when I think of myself and many people I know.
Only 7% remain after 5 years because trading is exhausting physically and mentally. Most people can't live in stress for years.
People underperform the market because they are impatient. They see it going up and sell when they reach their target but their target often is not the market's target.
Only 7% remain after 5 years because trading is exhausting physically and mentally. Most people can't live in stress for years.
People underperform the market because they are impatient. They see it going up and sell when they reach their target but their target often is not the market's target.
True, - what you refer to are behavioural biases. There's even specific area studying those - behavioural finance, as a part of which you can make trading models / systems / strategies to exploit and from from common traders' biases.
I am not sure where you got your statistics from but more than 50% of traders earn with trading. When we mention trading you need to understand that it involves you and me and everyone in the crypto space; Taking profits and earning from trading has nothing to do with passion but determination, good and perfected trading skill as well as an accurate decision making skill too.
when it involves trading, do not involve emotions. Always do your own research.
when it involves trading, do not involve emotions. Always do your own research.
Sorry, not to offend you, but you say the cliche phrase "always do your own research", yet you didn't do yours, because if you would - you would see every single source for the data just few messages above, and before that, as so many people asked same question without really checking the thread. If you believe >50% of traders are successful, then leet's see what that means... You can just google "number of traders" and the first result gives you 9.6 million online traders (doesn't matter how correct or wrong this specific number). Let's assume on average each of them trades with $1,000 (! on average - meaning someone can be with $10, or $1,990 or much more or much less). Let's assume each of them earns 20% annually net of fees, inflation, etc. (actually to achieve even this 20% is not that easy
). So that implies that:9.6 million of traders x 50% of successful ones according to you $1,000 avg. balance x (1 + 20%) ^ N, where "N" stands for the number of years
What you get? - in 1 year, those 50% in total will be trading $5.7 billions - in 2 years, they will trade $6.9 billion, and so on... assuming average trader trades for 15 years (doesn't need to be precise), they will be collectively trading $73,953,703,558 = $74 billion! Oh, and yes we forgot to include newcomers in these 15 years, and funds, and corporates, and banks. You can do the math with 50% success...
Is this only for the crypto market? I think 1% is too low, I really don't think that only 1% survives trading that earned a profit in the long run. I think those other than the 6.5% active traders are mostly traders who come and go when they see an opportunity and don't actively trade.
Can you provide us some context of this research results on how is this conducted, where does the resulting base, and what kind of platform does this research base?
Can you provide us some context of this research results on how is this conducted, where does the resulting base, and what kind of platform does this research base?
Read above...
That highlighted word is really appropriate in terms of traders performance.
Most are impatient thinking that this venue of investment is really easy, they've got a wrong impressions and with negative experienced
they'll be moving away that easy, giving it up and not to bother to continue instead of working more and learn more to established a much better patterns and winning strategy.
Most are impatient thinking that this venue of investment is really easy, they've got a wrong impressions and with negative experienced
they'll be moving away that easy, giving it up and not to bother to continue instead of working more and learn more to established a much better patterns and winning strategy.
There's no "winning strategy" at all, it must always be changing and adapting to different markets, assets, situations, contexts, otherwise your balance will quickly drop to $0
I think Discipline is the key in trading, from many reads i understand that first two years are the learning. Then conclud Trading is the best option or not.
Why wouldn't you then just handle money to someone who passed these 2 years of learning and showed good results? We, as being rational (not always though) human beings aim to maximize ROI from anything we do. And here you make a choice: 1) waste 2 years + money lost in 2 years + not sure if can succeed after 2 years, vs. 2) handle money to proven professionals and let them do their job?
I think Discipline is the key in trading, from many reads i understand that first two years are the learning. Then conclud Trading is the best option or not.
Quote
• Within 3 years, only 13% continue to trade
• After 5 years, only 7% remain trading
• The average individual investor underperforms a market index by 1.5% per year
• Active traders underperform market by 6.5% annually
• After 5 years, only 7% remain trading
• The average individual investor underperforms a market index by 1.5% per year
• Active traders underperform market by 6.5% annually
I find this to be true when I think of myself and many people I know.
Only 7% remain after 5 years because trading is exhausting physically and mentally. Most people can't live in stress for years.
People underperform the market because they are impatient. They see it going up and sell when they reach their target but their target often is not the market's target.
That highlighted word is really appropriate in terms of traders performance.
Most are impatient thinking that this venue of investment is really easy, they've got a wrong impressions and with negative experienced
they'll be moving away that easy, giving it up and not to bother to continue instead of working more and learn more to established a much better patterns and winning strategy.
Is this only for the crypto market? I think 1% is too low, I really don't think that only 1% survives trading that earned a profit in the long run. I think those other than the 6.5% active traders are mostly traders who come and go when they see an opportunity and don't actively trade.
Can you provide us some context of this research results on how is this conducted, where does the resulting base, and what kind of platform does this research base?
Can you provide us some context of this research results on how is this conducted, where does the resulting base, and what kind of platform does this research base?
I am not sure where you got your statistics from but more than 50% of traders earn with trading. When we mention trading you need to understand that it involves you and me and everyone in the crypto space; Taking profits and earning from trading has nothing to do with passion but determination, good and perfected trading skill as well as an accurate decision making skill too.
when it involves trading, do not involve emotions. Always do your own research.
when it involves trading, do not involve emotions. Always do your own research.
Quote
• Within 3 years, only 13% continue to trade
• After 5 years, only 7% remain trading
• The average individual investor underperforms a market index by 1.5% per year
• Active traders underperform market by 6.5% annually
• After 5 years, only 7% remain trading
• The average individual investor underperforms a market index by 1.5% per year
• Active traders underperform market by 6.5% annually
I find this to be true when I think of myself and many people I know.
Only 7% remain after 5 years because trading is exhausting physically and mentally. Most people can't live in stress for years.
People underperform the market because they are impatient. They see it going up and sell when they reach their target but their target often is not the market's target.
Where did you get this analysis? I'll be happy if you put the source to convince me that the analysis is trully happen.
I mean, I never got this information because if I got it then I'll have many times before I decide to be full time trader.
I read a trading book and the author just called that trader is a cursed profession and I just thought that it is true because I've felt it.
A trader prediction only have 70% if he really sure about his prediction. They never have 100% a chance to get profit about his prediction. Also, trading is always hard, just a fool people who admitted that earning money in trading is easy.
I mean, I never got this information because if I got it then I'll have many times before I decide to be full time trader.
I read a trading book and the author just called that trader is a cursed profession and I just thought that it is true because I've felt it.
A trader prediction only have 70% if he really sure about his prediction. They never have 100% a chance to get profit about his prediction. Also, trading is always hard, just a fool people who admitted that earning money in trading is easy.
The sources for the numbers are just above your message.
Would you cite those research papers you've been referring to? Many statistics, especially in trading, often relies only on a small percentage of respondents and never reached a the vast number of whole day traders. Yes, it is accurate that it is only almost 2% whom earns in trading, even I myself still struggles with it despite of being knowledgeable enough in that field. Trading, in overall aspect, is profitable. It really just an intense gambling of risks whether or not you take a point in either buying or selling. And of course, some intermediate knowledge with reading charts as well and searching for news would be a huge aid, yet the most important would be one trader's risk appetite.
Just a little note, there are DAY traders and LONG-TERM traders, whilst there are also STOCK trading, FIAT trading, and CRYPTO trading. Your 'researches' might be accurate on one side, and could be the opposite on the other.
Just a little note, there are DAY traders and LONG-TERM traders, whilst there are also STOCK trading, FIAT trading, and CRYPTO trading. Your 'researches' might be accurate on one side, and could be the opposite on the other.
The sources for the numbers are just two messages above. You also forgot to mention SWING traders, ALGO traders, ARBITRAGE traders, BOND traders, COMMODITY traders, DERIVATIVE traders, OPTIONS traders, SHORT-TERM traders, BOT traders, whom else you wanna include?
Since trading is one of the most difficult professions and very long in terms of formation, the issue of learning in percentage is the same as that of successful traders. You can prepare theoretically, but practically hardly. Here psychology is also important, psychotype, approach and so on. This cannot be taught.
It will not work like that, having studied other people's mistakes you will only understand superficially, but the best understanding for a trader comes through his own series of trial and error. This is best stored in the head. That is, your negative experience will push you to find the right solution faster than someone else's. Until you make a mistake yourself, you will not understand. So it will never be possible to analyze other people's mistakes and completely avoid them. All traders have always lost their money at least once. And so it will continue. You have to go through this.
It will not work like that, having studied other people's mistakes you will only understand superficially, but the best understanding for a trader comes through his own series of trial and error. This is best stored in the head. That is, your negative experience will push you to find the right solution faster than someone else's. Until you make a mistake yourself, you will not understand. So it will never be possible to analyze other people's mistakes and completely avoid them. All traders have always lost their money at least once. And so it will continue. You have to go through this.
I believe you are correct. But if that's the case that would mean someone could automate all those things and avoid "personal experience" & psychological factors. Yet, algos also don't always produce positive return with consideration to all related expenses.
Yes, it is. The strategy I mentioned can be used to trade in other patterns of online trading or investment you mentioned but you can't compare them all to cryptocurrency because crypto is volatile, only traders that have already learn how to maximize their profit over the loss and also seize every opportunity presented by the market can trade crypto.
Maximizing opportunity to possible loss is fairly easy I think, by just following TP @ 3 and SL @ 1 (3-to-1 ratio) would produce "decent" results and would make sure you don't lose all money too quickly.
In trading, it's good to always seize every opportunity that the crypto market has to offer but expect that not all opportunities will give you profits because sometimes, it's there to give you lessons to learn. If you chose to be more patient and always control your emotions when trading, then you can be those 1% who remain to trade successfully after long years in trading. I guess the reason why some traders don't last in this trading activity because of their thought that trading gives you quick profits and make you a millionaire in just a short period of time which is definitely not true.
In fact if you try to seize every opportunity around you are likely to get distorted and get your capital spread on too many deals which you cannot track well because of natural human limitations. If you try to play statistics by using "law of large numbers" and take every chance with the hope that eventually 51% of opportunities will be profitable and 49% will be not - you will very quickly find out that your capital is not sufficient to try that law in real life.
In my opinion, the 1% traders that remain profitable are traders who are passionate about trading crypto, who always learn from their previous mistake, control their emotions, never panic sell, have a reasonable stop loss strategy, never follow hype and know how to select good coins.
Isn't that also about skills & experience which can be learned by you, me, or anyone else reading this? Besides, it's not only about crypto trading, but trading overall - equities, FX, crypto, derivatives, just anything.In my opinion, the 1% traders that remain profitable are traders who are passionate about trading crypto, who always learn from their previous mistake, control their emotions, never panic sell, have a reasonable stop loss strategy, never follow hype and know how to select good coins.
Isn't that also about skills & experience which can be learned by you, me, or anyone else reading this? Besides, it's not only about crypto trading, but trading overall - equities, FX, crypto, derivatives, just anything.There has been many research papers, and the statistics are mostly pretty sad:
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Who are in your opinion these ∼1% of traders? Why they are able to remain profitable? Are you sure you are one of them, if you include taxes, fees, etc.?
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Who are in your opinion these ∼1% of traders? Why they are able to remain profitable? Are you sure you are one of them, if you include taxes, fees, etc.?
Would you cite those research papers you've been referring to? Many statistics, especially in trading, often relies only on a small percentage of respondents and never reached a the vast number of whole day traders. Yes, it is accurate that it is only almost 2% whom earns in trading, even I myself still struggles with it despite of being knowledgeable enough in that field. Trading, in overall aspect, is profitable. It really just an intense gambling of risks whether or not you take a point in either buying or selling. And of course, some intermediate knowledge with reading charts as well and searching for news would be a huge aid, yet the most important would be one trader's risk appetite.
Just a little note, there are DAY traders and LONG-TERM traders, whilst there are also STOCK trading, FIAT trading, and CRYPTO trading. Your 'researches' might be accurate on one side, and could be the opposite on the other.
Where did you get this analysis? I'll be happy if you put the source to convince me that the analysis is trully happen.
I mean, I never got this information because if I got it then I'll have many times before I decide to be full time trader.
I read a trading book and the author just called that trader is a cursed profession and I just thought that it is true because I've felt it.
A trader prediction only have 70% if he really sure about his prediction. They never have 100% a chance to get profit about his prediction. Also, trading is always hard, just a fool people who admitted that earning money in trading is easy.
I mean, I never got this information because if I got it then I'll have many times before I decide to be full time trader.
I read a trading book and the author just called that trader is a cursed profession and I just thought that it is true because I've felt it.
A trader prediction only have 70% if he really sure about his prediction. They never have 100% a chance to get profit about his prediction. Also, trading is always hard, just a fool people who admitted that earning money in trading is easy.
I'm not quite sure where did you get those number but I don't think your statistics were right may I ask where did you get those information but if those were right i think those 1% are probably full time traders or probably whales.
The numbers are from the collection of research papers which I noted above (see below also for your reference) - you can google them (because when I posted links to them my message was removed by moderators
)The North American Securities Administration Association (1999): Report of the Day Trading Group
Barber, Lee, Odean (2010): Do Day Traders Rationally Learn About Their Ability?
Odean (1998): Volume, volatility, price, and profit when all traders are above average
Barber, & Odean (2000): Trading is hazardous to your wealth: The common stock investment performance of individual investors
Kumar: Who Gambles In The Stock Market?
Barber, Odean (2001): Boys will be boys: Gender, overconfidence, and common stock investment
Calvet, L. E., Campbell, J., & Sodini P. (2009). Fight or flight? Portfolio rebalancing by individual investors.
Barber, B. M., Lee, Y., Liu, Y., & Odean, T. (2009). Just how much do individual investors lose by trading?
Gao, X., & Lin, T. (2011). Do individual investors trade stocks as gambling? Evidence from repeated natural experiments
Barber, Lee, Odean (2010): Do Day Traders Rationally Learn About Their Ability?
Odean (1998): Volume, volatility, price, and profit when all traders are above average
Barber, & Odean (2000): Trading is hazardous to your wealth: The common stock investment performance of individual investors
Kumar: Who Gambles In The Stock Market?
Barber, Odean (2001): Boys will be boys: Gender, overconfidence, and common stock investment
Calvet, L. E., Campbell, J., & Sodini P. (2009). Fight or flight? Portfolio rebalancing by individual investors.
Barber, B. M., Lee, Y., Liu, Y., & Odean, T. (2009). Just how much do individual investors lose by trading?
Gao, X., & Lin, T. (2011). Do individual investors trade stocks as gambling? Evidence from repeated natural experiments
As for full-time traders and whales you can check the earlier discussion where I explained that it's very weak reason - those people are also humans like both of us, and lose as much as regular people. It's just happens to be that we hear only about success stories, not about failures so much - survivorship bias.
Yeah this is what I know. Retail traders gradually became whale traders at one time. Because the retail traders who can make a profit from market, they make a profit by using their knowledge in the right way. So it is conceivable that these traders can guess at a much deeper market move, so they can take advantage and they express themselves as successful traders.
Yes, but not all, right? Again, I believe knowledge and skills can be learned by anyone any time with the current internet penetration, google, etc. I saw even some people learning trading from TikTok
but having those skills, knowledge, experience, etc. Never guarantees that you will be in top 1%.
I'm not quite sure where did you get those number but I don't think your statistics were right may I ask where did you get those information but if those were right i think those 1% are probably full time traders or probably whales.
I don't know who the 1% successful traders mean...
everyone ever profits and losses in trading but there is a hidden group *maybe whales which are compact selling when it must to selling and buying when it must to buying. *maybe the whale's group which is 1% successful in the trade
everyone ever profits and losses in trading but there is a hidden group *maybe whales which are compact selling when it must to selling and buying when it must to buying. *maybe the whale's group which is 1% successful in the trade
Maybe. However, there are many traders who are experienced enough to get an idea of the next movement in the market. And I think they are also the 1% traders who can earn by trading. Whale traders dominate the market and make a profit through their huge funds. And the retailer who makes a profit from the market earns by trading using his knowledge.
So according to those small experienced traders are also among these 1% successful traders.
Also possible, but if that is the case - knowledge can be learned. So the retail trader would accumulate enough knowledge and become a whale him/her/self. Thus others seeing that would repeat that many times and in large enough sample data, there will be too many whales who are continually earning good profits systematically (!) and persistently (!). But that's not the case at all... One among many other examples is LTCM (https://en.wikipedia.org/wiki/Long-Term_Capital_Management) - they got most money at a time, most talented people, they were definitely the whales but...
Yeah this is what I know. Retail traders gradually became whale traders at one time. Because the retail traders who can make a profit from market, they make a profit by using their knowledge in the right way. So it is conceivable that these traders can guess at a much deeper market move, so they can take advantage and they express themselves as successful traders.
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