• 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
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.