Question about 99% of Daytraders failing

6 months is nothing. Usually they say you have to spend 2 years learning. After 3 years only 13% of initial traders are still active. 1-2% of initial count are profitable. So it is 1/13 or 8% or people who was diligent about this whole affair.

Thay say is wrong., Real Firms have Junior Trading Programs most 24 months and you either get a REAL Sheet or shown the DOOR.

What percentage of people become billionaires? Not many, but does that you mean you shouldn’t try to make money as the odds of becoming super rich are so slim? It is a trade, like anything people are good at it and people are bad, but that doesn’t mean if you have a genuine interest and want to learn you can’t. If you come here thinking you are going to be a millionaire in a year because you have seen some people post silly gains on Reddit, then more than likely you will fail.

I'm daytrading for Years and i read thrigu all the trading and especially the prop firm subreddits daily. The amount of stupidy there is astounding. The ability to read and comprehend simple rules like consistency rules is not there. I'd say if you're an educated curious person that is able to read, learn and focus on a subject, your failure rate goes down to less than 50%.

This \^\^ In my opinion people turn it into gambling vs being consistent with base hits. The hype of lambos and yachts vs having control of your time & providing for your family. If people treated it like going to medical school , (step by step scaling vs graduated bachelors and immediately start doing brain surgery) there would be much higher success numbers.

Could not AGREE more. TODAY, everyone thinks they know everything all the time. Risk Management is just a PHRASE for the other FOLK. Traded for 25+yrs on a REAL PROP DESK (Risk Arb) until Volker shut it all down. 2YRS as a Junior Trader Goofer with a $10mm Sheet. BUT, before tarding anything i needed my Mentors approval. She was tough, Brilliant, and willing to teach.

6 months as a trader is crap. In today's society everyone is special , super observant, on top of it all and has read a book or 2 by some ALLEGED pro selling his BS for just a mere $14.99. Or are running candles , bars , micrsecond charts with 5,000 filters on an overlay to get the best execution of something that can't even spell. The following all have written , recently , on success/failure rates: ESMA, SEC, Finra, SEBI, CVM. I traded for 25+ yrs on a Prop desk, when they were REAL PROP DESK, for the #1 Investment Bank in the World and spent the First 2nyrs as a JUNIOR Trader under the wing of a Senior Trader. Had a $10mm Sheet and before execution needed her approval. Also learned the entire trade process , back to front, REPO, Funding, hedging, what and why momentum is and was.

6 months was just an arbitrary number for my question. I just wonder if there is data that breaks down success rate where the baseline is something beyond that of anyone who opens an account.

That I understand but a number of the studies also used it as their reference point. # I Reviewed Every Major Day Trading Study from the Last 25 Years — The Data is Devastating. Study by: Faisal Haroon is the founder of Zehnlabs, providing tactical asset allocation strategies for active investors

ONE other thing: down the pages on this site is an article on why the new 9:30 is 10am. Just for that clarification 10am is not now new, those of us who really traded and not SCALPED always new that MOST economic news hits the wires at 10. EXCEPT , NFP, Treasury Auctions and a few others

It was never a real number. You can prove this by using a VPN, set your country to a place in the EU, and then visit a site like Oanda. There's a big read disclaimer bar that pops up saying 74% of traders lose money (it usually hovers between 71 an 77%).

who is considered a trader in determining this statistic.

Generally it's did you open an account, deposit money, and then lose or win. It's not that complicated.

I would love to know how this number changes when only considering traders who have been at it at least 6 months,

Counterintuitively the number is likely worse than straight up newbie. Trading is a bit "odd" in that you already know how to trade. You've done it all your life. I can tell to you go to Costco and buy and sell gold bars for a profit and you can probably do this. But then a chart gets added and people lose their frigging minds trading XAUUSD. Traders start off with no additional knowledge, often times they're actually profitable but then the greed kicks in, they want more profits, and they think (as it is with most things in life) that more knowledge will help them make more money.

Yeah I talk about this all the time. So, that statistic include everyone. the vast majority of which are unprepared, uneducated, undisciplined. Every You tube bro, every moron that just buys stocks / optyions with out any preperation, research, not a fucking plan in sight. And yet its quoted often as doctrine on this sub, basically saying, 90% of people fail, what makes you different. I started trading when I was Locked up. I had family send me in past data of various stocks. Just OHLC and Volume. I stuck to one book ( Trading for a living by Alex Elder) I calculated every indicator by hand, drew every bar, Hid the future data from my self revealing only the next days price. Reveal price. Draw bar calculate indicators Draw indicators on graph paper. Decide what to do Repeat. I did this for 6 fucking years. When i came out, there was an adjustment period, and I kinda got lost still in the world of all these various indiators, strategies, etc... But ultimately my original lessons were the most successful. I learned, completely divorced from the internet. And its done nothing but help me. If I had been on the internet I'd have been stuck, getting wave and wave of this idea or that idea. Probably believing deeply in some bull shit GURU like ICT. And I'd probably have given up, hearing things like 90% fail. I'd bet a whole lot of money that if you grouped up individual traders by personality traits Like Rationality, High emotional pain tolerance, Risk Adversity, Analytical mind set. You'd see a much higher percentage of successes.

When you realize that 99% of these traders are just dumbass kids, it’ll make you realize it’s actually not that hard to be profitable. Just stick to your rules and don’t be emotional like you’re on your period

Because the bar for entry is so low. Anybody with prop account or brokerage account is considered a trader and skews the results. It’s like including every kid who ever played organized basketball into the statistics of failed nba players. With that said, trading is incredibly hard until it isnt

99% that fail are the ones bitching about it! The successful ones don’t need to post about it.

99% that fail are the ones bitching about it! The successful ones don’t need to post about it.

There are numerous peer reviewed studies on this subject. My favorite study is the Taiwan study because they had the data to look at literally everyone who interacted with the Taiwan market. Only 1% of traders made abnormal returns net of fees. https://www.researchgate.net/publication/238220682\_Do\_Individual\_Day\_Traders\_Make\_Money\_Evidence\_from\_Taiwan But the most commonly cited study, and the one that really put the final nail in the coffin is the Brazilian futures study: https://papers.ssrn.com/sol3/papers.cfm?abstract\_id=3423101 In this study they even looked at traders that had traded 300 days or more. They still found that 97% of them lost money. So even after you filter out the casual people that give up quickly as OP suggests, the statistics are dismal.

99% fail cause of position sizing and bad stop loss

Why look to filter data at all for it? I mean doesn’t really make much sense to filter data I think