Myth or reality - 90 percent traders lose money

UberMachine

Well-Known Member
#1
I often hear across the fact that most traders (around 90 percent) , especially retail traders and investors, lose money.
Is this real or its an over-exaggerated figure?
One further extension is that institutional traders win and retail traders lose most of the time.
Again, I am curious to know an estimation of how many traders are actively involved (By active, I mean atleast 5-6 trades a month).
My guess is there would be around a million traders.
Eager to know your comments
 

haruns

Animal Spirits !
#2
I have not seen successful trader so far who earns consistently. still have faith in myself even after 5 year. but believe me that statistic is not far from truth. about this line (By active, I mean atleast 5-6 trades a month). traders who do this are more profitable than intraday traders and they are called swing traders....
 

newtrader101

Well-Known Member
#3
It's the truth. Many jump in without any preparation and are easy fodder for the stop hunters, market makers, and what not. As if their own stupidness was not enough.
It may be more than 90%. How many can resist the temptation to use more funds and leverage when an occasional stroke of luck brings 10% or more returns in a day?
 
#4
The percentage is debateable, fact is that most of us (traders) lose because we are unwilling to take the first step - "understand myself"!

Trading is contrary to what society teaches, understand myself first - then maybe I can dance with the market!
Avoid getting caught up in technical analysis, all indicators are based on price (RESULT) and volume (EFFORT) - master this study,
bar by bar. It is like reading a picture (graph) and writing a story of what the picture is saying ! Most of us write the story of
what is " in my head".

Oh! don't lose sight of the fact that all markets are manipulated by the "big fish" and when the big fish get caught the government
bails them out - all one needs is to study the US markets over, say the last 40 years.
 
#5
I often hear across the fact that most traders (around 90 percent) , especially retail traders and investors, lose money.
Is this real or its an over-exaggerated figure?
One further extension is that institutional traders win and retail traders lose most of the time.
Again, I am curious to know an estimation of how many traders are actively involved (By active, I mean atleast 5-6 trades a month).
My guess is there would be around a million traders.
Eager to know your comments
its a myth for them who loosing money
its a reality for them who making money
so whom u hear from and where u belong,that matters the most
 
#6
If we're talking about the middle-class population, yes. In fact, I'd say the number is between 95-98%. Haven't come across a single person in the middle-class circles(for whom salary is the only source of income) who ended up profiting from intraday trades. I hear stories of how someone lost money day trading every now and then.
The other class of people who do okay for themselves are the ones with disposable income and take hits on initial losses and learn to manage risks and do it on a small scale.
Your guess of million active traders is actually quite optimistic. Majority of the retail traders that enter the market also churn out in a matter of weeks if not months after making losses. And a million Indians definitely aren't profitable at day trading.
 

UberMachine

Well-Known Member
#7
If we're talking about the middle-class population, yes. In fact, I'd say the number is between 95-98%. Haven't come across a single person in the middle-class circles(for whom salary is the only source of income) who ended up profiting from intraday trades. I hear stories of how someone lost money day trading every now and then.
The other class of people who do okay for themselves are the ones with disposable income and take hits on initial losses and learn to manage risks and do it on a small scale.
Your guess of million active traders is actually quite optimistic. Majority of the retail traders that enter the market also churn out in a matter of weeks if not months after making losses. And a million Indians definitely aren't profitable at day trading.
My guess there would be around a million traders at any given time during day trading. Working at out 5% profitable traders, then the number comes to around 5000
 
#8
My guess there would be around a million traders at any given time during day trading. Working at out 5% profitable traders, then the number comes to around 5000
At any given time, Yes. But you're talking about people who trade at least 5-6 times a month - which would be more close to the 5000 figure. But at the same time, 5000 sounds really low. Like, there's got to be more of them.
 

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