New Study Shows How Unprofitable Day Trading Is?

[Julian ogan]

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?

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[Quidat]

>> If day trading is not profitable, then why do people still do day trading?

I highly believe this would talk out about forex and stocks trading and i had read up about these percentages too.I dont know if that
one is accurate or not but they do really have the points to this very volatile market even we do talk about traditional markets like forex
where profitability would really depend on how you do play with the market.For crypto space i do believe that it is much higher
rate when it comes on making money.If it werent profitable then we cant see those multi-millions of daily volume on exchangers.

[akram143]

It is not possible to have accuracy on crypto trading statistics,so the article might be wrong.

Another reason could be past year is not very good for the crypto traders due to long recover phase.

[asyakashi]

I suspect the contents in the article are about forex trading.
The article does not provide a full explanation so that it raises other guesses.
That article cannot be a clue to conclude anything.

[Darooghe]

Day trading can be profitable but only if you're better than the average trader and good at managing risk. It's stressful though and hard to predict which direction the market is going short term, i wouldn't recommend it.

In my opinion it is better to trade the more longer term swings in the market which are easier to predict and don't cause as much stress. It requires a lot more patience though, sometimes you have to wait many months for your trade to work out. Easiest and probably most profitable for most people long term is to just accumulate Bitcoin now as long as there is an 50 percent discount from its high and wait for the next bull cycle to begin. This requires the most patience though, but is also the least stressful if you didn't invest too much.

[Willitivity]

I would want to get a fuller details as regards to this assertion. In crypto trading, one can make good returns with day trading though it may be very small returns per day. And in some days no return at all. If you enter a trade with a fixed average % increase, once the target is reached, you sell it up and move in to another one.

[TravelMug]

Never bother to click, anyways here is my take on crypto trading,

[1] I think there are people who making tons of money, but it could be the whales. But as far as average traders, yes it's possible that they can make good profits in days or months, but those have a lot of experience under their belt

[2] Is crypto traders are going to spill out their earnings though? I mean we love to be anonymous that's why we are here, so how can we gauge how much someone is taking home when traders are quite and doesn't want to spill the beans?

[3] We are in a bear market, so the difficulty of making money is manifested.

[Renampun]

I came across an article where researchers found that 3% of traders make money and with less than 1% making more than minimum wage.

>> If day trading is not profitable, then why do people still do day trading?

I will say once again that daily trading is very risky,
Daily trading is not much different from betting, we are not given the opportunity to analyze more thoroughly,
Weekly or Monthly trading is much better,
in addition to refreshing your mind and mentality, you can manage your financial strength more freely when trading.

[jazmuzika217]

I think we can consider trading as non profitable activity if we don't have enough knowledge to do this. Doing that study is not measurable if trading is profitable or only waste of time because all we know that they are only based their study on few participants not in all participant all over the world so it is not accurate.

[Vispilio]

Gross inefficiencies where really high probability trading setups can be found happen occasionally in most markets.

Therefore unless you have a constant edge that holds true for every day, which is the case for some HFT strategies, it doesn't make sense to force yourself to trade every day, and the commissions would  typically destroy your equity as your win rate decreases with excessive day trading...

[adroitful_one]

Who took the study? It says 3 academics? Does that mean students? I don't care if they're 3 economics students. They still may not have any idea of what they're doing. Plus, 3 people is a very, very small sample size to get an idea of what is really going on. They could have picked 3 students that were barely even passing the economics class for all I know.

[target]

Crypto Trading is just dumping and holding. It may just be in my experience, I trade in the bitmex with all the leverage I have, I can't earn much since the price movement isn't just that substantial. I can't find a real trading system that works for me, none of those gurus can't create a detailed trading strategy for day trading.

Only for long term trading is all I see which somehow works though.

[MURONDI]

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?

maybe the article mentioned about forex trading, forex trading and altcoin trading have striking differences, especially on leverage, Leverage makes a trader quickly produce profits and losses, In altcoin trading, in my opinion a lot of newbie traders are tempted by big profits, so they trade without knowing the market situation.

[rijaljun]

Crypto Trading is just dumping and holding. It may just be in my experience, I trade in the bitmex with all the leverage I have, I can't earn much since the price movement isn't just that substantial. I can't find a real trading system that works for me, none of those gurus can't create a detailed trading strategy for day trading.

Only for long term trading is all I see which somehow works though.

Yeah, day trading is also hard to do and your profit is bade on daily price volatility. If the price on that day isn't really volatile, even if you take profit, it won't big enough and it means your effort to analyze the trade isn't paid off.

Long-term trading is and will always be easier to take profit because it puts both technical and fundamental things inside.

[djsugar]

Day trading is done with tighter stop losses. If you compare it with short or medium term trading, the chances if success is less in day trading. You play with small margins and tighter stop losses. There is big chance that you opt out of the trade with a small price movement taking little loss. Cryptos are pretty volatile and there are many noob traders here. Added to that lack of regulations leads to more trades ending in loss. A single professional trader can eat up many new traders in day trading.

[Shasha80]

I disagree with the article that says trading is not profitable. Really inaccurate, research in the article it must be questioned
about the truth. Basically, people who fail in trading I'm sure of ability trading is very low, because for people who master
the knowledge of trading. Not likely to be profitable. I also believe that people who fail one of their trading characteristics
can not control emotions and too greedy.Because the key to trading is patience and when it take profits don't delay it. It is your right
if want to believe the article. I personally do not believe in the article, because I have felt profits several times when trading crypto.

[ChrisPop]

Well, those statistics are true in big part. Depending on who they have questioned they will usually get results that around 1-10% of the traders are profitable in the long term. Trading is one of the hardest things in the world, because it takes a special dedication and mental work that not everyone are capable of doing. Day trading is profitable if you know a little bit of technical analysis, how to manage risk & control your emotions.

Most people take on the trading challenge because they aspire the lifestyle of a trader, but soon they'll find themselves failing and get frustrated and quit. Remember that many big profitable traders have lost their whole account at least once 

[exstasie]

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 roulette, said the academics.

>> If day trading is not profitable, then why do people still do day trading?

Trading is a high turnover occupation. Losing traders are constantly exiting the market but new blood is always taking their place, drawn in by dreams of big gains. That's one of the reasons day traders are sizeable in number: because so many of them are new and haven't lost their shirts.....yet.

Some losing traders are addicted to it like gambling, which probably explains the loss distribution resembling that of casino roulette. I've seen lots of people like this over the years. They come in guns blazing, overconfident, taking way too much risk, and then they blow up account after account after account. Then they disappear when all their money is gone.

[whyrqa]

I think the main reason is that each trader think that he is unique and he can become top 1% of traders. But reality is completely different and this research shows reality.
I think that most of traders want to become rich and trading is a chance for them. They use high leverage to get a chance, but a result all of them lose deposits

It seems to me that not only daily trading today is very difficult.  Only real professionals today can make good money on the cryptocurrency market, and all those who are used to earning big profits in past years, today they begin to resent and talk about the futility of day trading.  In which case you need to work harder, analyze and practice, gaining experience and, accordingly, getting good results.

[pixie85]

Crypto Trading is just dumping and holding. It may just be in my experience, I trade in the bitmex with all the leverage I have, I can't earn much since the price movement isn't just that substantial. I can't find a real trading system that works for me, none of those gurus can't create a detailed trading strategy for day trading.

Only for long term trading is all I see which somehow works though.

If it is as you are saying when does one buy coins to dump them? Believe me crypto trading is much more than just holding and dumping.

There's a strategy for day trading and I've seen people do it. You can even find videos on youtube where people day trade in real time.