I came across an
article where researchers found that
3% of traders make money and with less than 1% making more than minimum wage.
A new study of day traders in Brazil 3 academics, 2 from the Sao Paulo School of Economics and another from the University of Sao Paulo, undertook a comprehensive analysis of options and futures day traders in local equity markets and shown that this is almost certain to be a total nonsense.
The academics looked at just under 20,000 new traders and found that, over time, they lost more and more money. Of those that traded for a single day, roughly 30% turned a profit. Conversely, only 3 percent of the people that traded for over 300 days made any money.
In fact, the researchers found that the longer that someone traded, the more money they lost. This pattern can be seen in the casino roulett, said the academics.
>> If day trading is not profitable, then why do people still do day trading?Do bear in mind that this just a study and it hasn't been empirically investigated per say. I believe they conducted the study based on data made available to them. Now, Then to account - - those traders who keep their trading records private, the amount of exchanges. Don't forget that the article is centered around forex/stock trading. Day trading is quite profitable. Don't let anybody tell you otherwise. Since it's not thoroughly investigated, there's a research gap in that area.