There has been many research papers, and the statistics are mostly pretty sad:
• 100% of people start trading with the hope of getting rich
• 80% of all traders quit within the first two years
• Among all traders, nearly 40% trade for only 1 month
• 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
• Only 1.6% of traders remain profitable net of fees in the long-run
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.?
It's not really difficult to know who they are, a portion of those traders are whales, people that can move the market on their own and that can perform moves that the average person cannot do, others are simply lucky and despite their lack of knowledge they have obtained profits simply out of luck, and the remaining group consists of the few traders that actually take the time to understand the markets and think about it and that develop a strategy that gives them profits over the long term and then follow that strategy no matter what.• 100% of people start trading with the hope of getting rich
• 80% of all traders quit within the first two years
• Among all traders, nearly 40% trade for only 1 month
• 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
• Only 1.6% of traders remain profitable net of fees in the long-run
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.?