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?How profitable day trading depends on many different factors, one such important factor is that it depends on how much capital a trader has. A 2% gain for a trader with $10k vs $100k USD makes a big difference and can spell the difference between becoming a successful full-time job or not.
But if we talk of Bitcoin alone, it does seem like long term investors have gained more than day traders.
Day trading is more profitable when it comes to volatile market. If you are really good at day trading then you can make a lot of profit if you will choose to trade bitcoin. It really depends on the capital but even with a few thousand dollars as a capital in bitcoin day trading, you can still make a lot of good profit. So you better master the basics of technical analysis if you are really into day trading.
Day trading is more effective on the volatile market indeed, however, not for crypto because as we can see there's no big movement happening in the market now hence day trading is out of option probably, it is better if you do the long term trading. Besides, OP is more likely pertaining to foreign exchanges, not crypto that is why people choose daily trading but for crypto traders based on what market we have now daily trade seems a bad option.
