Indeed. Long-term traders who are very patient contribute to a small percentage of all the traders. Most traders are short-term traders, their being short-terms traders has become the difficulty for them to win in the market. Day-trading can be highly profitable, but it is not sustainable for most of us.
Day trading is very profitable for Ken Griffin and Stevie Cohen, who have definite information edges. For whom else, I don't know.
Opening up a trading account is NOTHING like opening up a store. It's nothing like a business; yet clowns think it's a fair comparison. day trading is usually just lazy gambling for single guys who are delusional that they have an edge. 10,000 dollars, or less, that goes to zero while they yell, "I got robbed." it's like spending 1,000 for a tryout with a professional team (like minor leagues that actually do this). they have 0% to make it, spend 1,000, then they have their excuses. here are some facts: you can lose money you have no idea where prices will go, no matter your research you are never 100% sure you have an edge, or got lucky you might have underestimated the bank roll you need....remember, you are up against people with billions. billions. hundreds of billions, and they went to a better school, have better execution, better information, and get a salary of millions if wrong. good luck
when I opened my bait shop, I bid on a liscensing fee to the State of Indiana. It gave me the right to rent their boats at the lake. I just guessed on the fee (something like 14k) (wouldn't have made any difference, since I was the only one that bid) and made a cool 1k on a Saturday, and a few hundered on a Fri or Sun. And I was very lazy at the time. I bought a lot of items for the store that never sold. It was just like trading. Except I got Mon thru Thursday off, and there were a lot of girls in bikinis.
now there was a learning curve on this one, so that's 14k to make 1k a Saturday for the five or six months during the spring, summer and fall. (and fall is a really big deal around here, especially Labor Day. 2k possible.) next year and the year after, I bid $900. Since nobody else wanted it just like trading hey man, I told you, I am really small time, that's the way I have always been, that's the way I like it, and if I don't screw up, that's the way it will always be. I already have a car, I don't need a a new one.
I mostly agree-- trading and running a business are radically different-- anyone who says differently hasn't a clue. surf
yes, when you run a business, you have to buy low and sell high radically different than trading in trading, you need clues
Personally, I think trading and running a small business are different. Let's say the convenience stores or grocery stores, must of the grocery stores can survive and make money(although probably not much, but they can make money) and keep going. Conservatively speaking, more than half of the grocery stores can make it. But as you already said, 95% are losers, which means only 5% can make it. That has shown that trading and running a small business are radically different.