Post
Topic
Board Trading Discussion
Re: Who are the 1% of traders who earn with trading?
by
as.exchange
on 16/12/2020, 14:02:25 UTC
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 Grin)

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


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.