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.?
If you ask why then the answer is profits made by a trader comes from the loss of another trader so if someone is in profitable for ling run means many traders helped him to make money with their losses so the one remain long while all other left in the meanwhile condition.• 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.?