A lot of people are curious about the average success rate of trading in the financial markets, and if it’s even worth investing time and energy into learning how to trade. Most aspiring traders love the thrill of trading or the idea of making money quickly and don't take it that seriously. A lot of traders who are first starting out don’t understand the time and energy involved to become consistently profitable in various market conditions. Especially these days, with all the media attention surrounding Gamestop, Bitcoin, and High-Frequency Trading- lots of new people are entering the markets hoping to multiply their funds and get rich quickly. Factor in the global pandemic, anticipated stimulus packages from the Biden administration, low-interest rates, and r/Wallstreetbets, and we’re in for a wild ride. Click below to learn more about some interesting trading success facts we've gathered: Trading Success Rates and Comparisons with Other Professions In summary, of the studies done in 2018, only about 5% of all traders remain consistently profitable in the long term. These are traders who put in significant time, energy, and effort into trading careers under the right structured learning environment. These profitable traders dedicate themselves to master the craft and make consistent profits for many years. This is higher than the rates of being a high school senior and drafted into the NFL, which is 0.09%. With the guidance of a good coach or mentor, the day trading success rate can be an average of 9%. This, of course, depends on the coach, and the attitude and efforts of the trader. Some coaches may offer no extra benefit in trading success rates, while others can increase your rate to over 20%. What do you think of these trading success rates? With all of the events that have been going on recently, what do you think the rate is right now?
There are numerous studies and they say 95% of traders lose monies. So, that leaves just 5% who actually, make monies in the stockmarket. I think that is accurate. The hype and mania over GME and AMC with traders fighting to buy shares even at the highest price levels shows you the utter ignorance of a lot of traders. Everyone believes the hype they can be millionaires overnight. When the dust settles, most of these traders will have lost most of their monies and still wondering what happened.
95% make money. Of the 5%, 4% make peanuts. 1% make decent coin. 1% of the 1% make seriously decent coin. And i mean over the long run, many more traders make fortunes in the short term only to lose it all soon after.
The CFD-brokers are require to post the statistics for their customers. At least in Europe. Oanda says 28% of their cloents make money. A few precent of those 28 probably makes most of it thought
It depends upon the markets. Changing markets flush out the one-two trick ponies. Right now there are a lot of them. The directional bias has been strong for over a decade. The "crowd" trade is in vogue now. So as you allude to, the key is a variety of market conditions is required to make an accurate assessment. Risk management, money management, psychological management will all come more into play. If you don't have these, it will be a tough road. These are the things that need to be learned, IN ALL MARKET CONDITIONS. Sometimes they are only learned by getting chopped up or black swan roasted. Heck even a gray swan will "cook your goose" for a lot. Perhaps OP can give some example of how people blow up, or just get ground up and how they teach not to do it. E.g how a medium strong, martingale strategy ends.
My first job was working at a pizza place. It was opened for a decade but the two owners both worked 16 hour days to keep the place going and make any money. They were profitable but after a decade finally had enough and did something else with their lives. Was that a successful business? There is no point in talking about statistics for events that we don't even have strong definitions for. IMO we seem to have this bias that we just want to hear statistics and numbers and we don't really seem to care if the numbers tell us anything or mean anything.
The main rule that I learned in Trading Drills Academy is, "All your losses in charts come from your losses in life. Change your life to become profitable." I believe that any traders who come to 5% must use this law everywhere and every time. Best Regards, Rez Mir
That is a true fact and a good point. We have seen some traders that became consistent after taking the PAAT (Price Action Algo Trading) coaching system but have a hard time increasing their position and account size. They are consistent when trading small accounts but the amount of profit is not significantly meaningful to transition to a full-time trader.