Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

josephhawkins

Do 90% of Day Traders Lose Money?

Recommended Posts

Hey,

I started "day trading" with $40 000 CAD 3 weeks ago. I am up to $46 500 which represents an increase of a little more than 15% overall. Note that I am limited to 1-2 trades a week (since I have to wait 3 days for my funds to become available). But after reading many specialists say 90% of traders lose money, I am under the impression that this is just the luck of the beginner and that I will eventually lose all my profits in the near future.

So am I doing something right or is this just the luck of the beginner?

PS: I do not make random trades so I am not gambling. I usually hold a few hours but sometimes will keep 1-2 days.

Share this post


Link to post
Share on other sites
Hey,

I started "day trading" with $40 000 CAD 3 weeks ago. I am up to $46 500 which represents an increase of a little more than 15% overall. Note that I am limited to 1-2 trades a week (since I have to wait 3 days for my funds to become available). But after reading many specialists say 90% of traders lose money, I am under the impression that this is just the luck of the beginner and that I will eventually lose all my profits in the near future.

So am I doing something right or is this just the luck of the beginner?

PS: I do not make random trades so I am not gambling. I usually hold a few hours but sometimes will keep 1-2 days.

 

15% is great. No one knows what will happen next and we can all debate what just happened. Expect to have losing days, weeks, months, and years in your trading career.

 

40k is a low amount to trade with. With a 15% gain in a few weeks, I suspect you are taking on a bit too much risk for your account size if that is all the funds you have to commit to trading. If you have a lot more funds than 40k, then that is a different story.

Share this post


Link to post
Share on other sites
Hey,

I started "day trading" with $40 000 CAD 3 weeks ago. I am up to $46 500 which represents an increase of a little more than 15% overall. Note that I am limited to 1-2 trades a week (since I have to wait 3 days for my funds to become available). But after reading many specialists say 90% of traders lose money, I am under the impression that this is just the luck of the beginner and that I will eventually lose all my profits in the near future.

So am I doing something right or is this just the luck of the beginner?

PS: I do not make random trades so I am not gambling. I usually hold a few hours but sometimes will keep 1-2 days.

 

First... what you are doing doesn't fit the definition of "day trading". Second... over such a small sampling size, there is no way to gauge your performance... it may just be dumb luck. I would almost venture that you may have not seen a losing trade... certainly not a series of losing trades. The one thing you have in your favor right now is that you've managed to credit your account with $6500 (good for you). Imagine how it would feel if it were reversed, and you were trying to dig out of that hole.

 

Speaking from personal experience, the most difficult aspect of trading for a living is getting over the hump of being a break-even trader. This can be a slog at times, but that's what you've signed up for... it may take a while.

 

I amuse myself... "digging out of that hole". My bad... stop digging, start filling...

Edited by jpennybags

Share this post


Link to post
Share on other sites
Hey,

I started "day trading" with $40 000 CAD 3 weeks ago. I am up to $46 500 which represents an increase of a little more than 15% overall. Note that I am limited to 1-2 trades a week (since I have to wait 3 days for my funds to become available). But after reading many specialists say 90% of traders lose money, I am under the impression that this is just the luck of the beginner and that I will eventually lose all my profits in the near future.

So am I doing something right or is this just the luck of the beginner?

PS: I do not make random trades so I am not gambling. I usually hold a few hours but sometimes will keep 1-2 days.

 

From what I recall, a Taiwanese (?) study who followed the performance of >1,000 day traders for over a decade, came to the gruelling conclusion, that 99,7% of all day traders lose money in the long run. The remaining 0,3% made 5% p.a. on average, with a tiny subset of these making the high double digit returns almost every other trader on the internet seems to pull before breakfast or hopes to pull in the very near future, lol.

 

On this basis I'd urge you to find a better place for your money. :(

Share this post


Link to post
Share on other sites
From what I recall, a Taiwanese (?) study who followed the performance of >1,000 day traders for over a decade, came to the gruelling conclusion, that 99,7% of all day traders lose money in the long run. The remaining 0,3% made 5% p.a. on average, with a tiny subset of these making the high double digit returns almost every other trader on the internet seems to pull before breakfast or hopes to pull in the very near future, lol.

 

On this basis I'd urge you to find a better place for your money. :(

 

....a Taiwanese (?) study....

 

can you provide that source, pls?

 

thx

 

nakachalet@gmail.com

Share this post


Link to post
Share on other sites

Hello, I want to share my personal experience in trading since I started last year with a very little knowledge, I trade mainly on crypto trading platforms as I am very interested in the philosophy behind btc and open source blockchain. With time I got interested to try to trade and started to try to, I bought, waited a little bit sold for little gain, bought again BUT i didn't know about simple instruments and advanced order types. So basically my first trades were at a loss. 

After I gained a little bit more knowledge I learned about leverage when I started trading on Bitmex and later on Primexbt, boy it was more exiting but this was the time when emotions during trading took over me and made a loss, got liquidated few times because I didn't know how to properly use my stop loss or completely forgot about it. Lately I am much better but this comes after making mistakes for almost one year. Have in mind that i didn't had much time to focus on this because I was working other job all day. 

So in conclusion my first trades in the first few months were utterly failures. I can say that this happens because of lack of education or prior experience, but at the moment I am happy as thanks to this I learned about market cycles/trends, leverage trading, stop-loss, advance order types like OCO etc..., learned what correlates and what does not. Learned about rising and falling wedges etc... All comes down to one thing: education and experience.

But yes first comes loses and knowledge, later some profits :D

Share this post


Link to post
Share on other sites

I am coming across this question for the second time. The first time, I had thought of passing it. But the subject of trading, especially profitable trading being dear to my heart, I had to come back to answer it.

First things first. You have done well to get 30% profit as you have stated. I hope you are still maintaining profitability though would not be surprised if the profit is gone.

Now coming to your question— The answer is YES.

One or two percentage points more or less do not matter. It is a fact that winning traders are far fewer than losing traders.

And this has been emphasized in most of the answers.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • $ADD Color Star Technology stock bottom breakout watch above 1.66 , see https://stockconsultant.com/?ADD
    • Date : 8th February 2023. Market Update – February 8 – Markets Mixed Following Powell. Trading Leveraged Products is risky Chair Powell’s comments – cancelled each other out – talked more “disinflation” with “significant declines in inflation.” in 2023 but the surprise 517k NFP he could not explain – adding to the 5-5.25% range argument. Fed Fund futures are now pricing the terminal rate at 5.15% in July. (up from 4.9% ahead of NFP). So “As we were.” USD slipped and then reversed, Stocks (NASDAQ +1.90%) & Yields (US10yr 3.6745) closed higher. Biden’s SOU speech has high ambitions but has little chance of success with a divided Congress.   The USD Index continued to rally from 8-mth lows last week at 100.65. Third day higher touched 103.80 before reversing under 103.00 and is back to 103.20 currently. EUR – sank to new 21-day lows at 1.0675 yesterday, rallied to 1.0760 and back to 1.0735 now. JPY – Declined over 1.3% yesterday to 130.40 lows, over 131.00 now at 131.20. GBP – Sterling rallied to 1.2080 then weakened again to breach the psychological 1.2000 yesterday to touch 23-day lows at 1.1960. The pair is back to 1.2050 now. Stocks – The US markets rallied on the disinflation side of the story (0.78% to 1.90%) US500 1.29%, (52.94) 4164, holding the key 4100. US500 FUTS trade at next key resistance 4175. MSFT +4.2%, GOOG +4.42% & Bidu +12.18%. All rallied on AI news, Oil majors rallied on back of BP Earnings. ATVI +5.62% on back of MSFT, their own Earnings and takeover rumours.   USOil – Futures rallied again to trade at $77.55 today from $72.20 lows on Monday. Gold – Advanced from $1865 lows yesterday to $1880 resistance now. BTC – Tested $22.7k lows yesterday, before lifting over $23k, to 23.2k now. Today – BoC Minutes, Speeches from Fed’s Williams, Cook, Barr, Bostic, Kashkari & Waller, ECB’s Knot & Elderson, Earnings from ABN AMRO, Credit Agricole, Equinor, Societe Generale, (Beat) AP Moeller-Maersk, CVS, Disney and Uber. Biggest FX Mover @ (07:30 GMT) AUDJPY (+0.20%). Sank from a test of 91.95 yesterday to 90.70, before rallying again to 91.50 today. MAs aligned higher, MACD histogram & signal line rising & testing 0 line. RSI 55.00 & rising, H1 ATR 0.190, Daily ATR 1.105. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Stuart Cowell Head Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • $IMVT Immunovant stock breakout watch above 19.97 , see https://stockconsultant.com/?IMVT  
    • $ZYME Zymeworks stock bull flag breakout watch above 10.37 , see https://stockconsultant.com/?ZYME
    • $VKTX Viking Therapeutics stock breakout , see https://stockconsultant.com/?VKTX
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.