Article Average Rate of Return for Day Traders

[T2W Bot]

It’s the question at the tip of every aspiring day trader’s tongue: how much money can I earn from day trading?
Since most day traders do not disclose their trading results to anyone but the tax authorities, an exact answer to how much money an average day trader makes is impossible to answer. However, there are numerous sources of information, including reliable academic studies, that offer clues on average earnings. The majority of available information does not shed a positive light on day trading. The research typically indicates that, in fact, most day traders lose money.
Day traders make money by buying stock and holding it for a short period of time–anywhere from a few minutes to a few hours–before selling it off again. Day traders usually enter and exit trading positions within the day and rarely hold positions over night. The focus is on profiting from short-term price fluctuations. They often use leverage to give themselves greater power to buy and sell.
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[Quantt]

We've just published a new T2W article called "Average Rate of Return for Day Traders" by Dan Blystone.

Quick Summary: Dan Blystone looks at the evidence to determine how successful day trading is.

PS. Don't forget to rate the article after you've read it and share your comments on this thread.

Actually I do like this article...

 

[paramaniac]

Average rate of return for day traders

Day trading is definitely mug money. Why would you risk so much for so much hard work for so little reward? The appeal is of course that it provides easy answers that people want to hear. Evidence of the pathetic growth rates to be made is simply ignored lest it burst the bubble of lying on the beach with the yacht in the background earned after 2 or 3 years in day trading.
The reason the data for growth rates in day trading is so vague is quite simply because it’s probably non-existent. If someone out there was making Stella growth rates we’d probably hear about it, but we don’t.
On the other hand there is someone who has all the books, accounts, data etc to prove their annual average growth rate and that’s the fourth richest guy in the world, Warren Buffet. Absolutely no vagueness there, this guy has returned an average annual growth rate since 1965 of circa 20%.
Now, if warren buffet is making 20% a year we can safely say that’s a good growth rate. Any trading system or investment system that is beating the stock market return of 8% a year and getting near 20% per year return is doing very well. All you need then is capital and compound interest will do the rest.
If that’s not what you want to hear then stick to day trading.

 

[NVP]

Day trading is definitely mug money. Why would you risk so much for so much hard work for so little reward? The appeal is of course that it provides easy answers that people want to hear. Evidence of the pathetic growth rates to be made is simply ignored lest it burst the bubble of lying on the beach with the yacht in the background earned after 2 or 3 years in day trading.
The reason the data for growth rates in day trading is so vague is quite simply because it’s probably non-existent. If someone out there was making Stella growth rates we’d probably hear about it, but we don’t.
On the other hand there is someone who has all the books, accounts, data etc to prove their annual average growth rate and that’s the fourth richest guy in the world, Warren Buffet. Absolutely no vagueness there, this guy has returned an average annual growth rate since 1965 of circa 20%.
Now, if warren buffet is making 20% a year we can safely say that’s a good growth rate. Any trading system or investment system that is beating the stock market return of 8% a year and getting near 20% per year return is doing very well. All you need then is capital and compound interest will do the rest.
If that’s not what you want to hear then stick to day trading.

If you’re proficient at day trading you will earn money .....if you are bad at it you will lose money

That’s it.......

 

[divyanshisharma]

Average rate of return for day traders

Rate of return for day traders should not be expected more. Because everyday profit is not possible for day traders, it need depth knowledge awareness to gain profit in intraday.

 

[NVP]

Rate of return for day traders should not be expected more. Because everyday profit is not possible for day traders, it need depth knowledge awareness to gain profit in intraday.

a daytrader making say 20-30 trades a day cant beat a longer term trader making say thesame max trades a week or month .....seriously ?

jees i better stop daytrading ...im getting it all wrong

N

 

[NVP]

Rate of return for day traders should not be expected more. Because everyday profit is not possible for day traders, it need depth knowledge awareness to gain profit in intraday.

it takes a lot of experience, skill and knowledge to trade in any timeframe my friend ........no excuses or easy rides in trading :smart:

 

[NVP]

a bit lightweight ?

sorry Dan ...........research and comment is a little on the lightweight side for me ........N

 

[stillkicking]

I guess this is why so many day traders are selling their so-called "systems" on Youtube.

If they were really that good at day trading they would not need to. Same can be said for folks selling real estate systems and other get rich quick schemes.