I mean it is NOT half of traders, BUT half contract (money). Absolutely zero-sum game with respect to index. (before fee+tax) For example, suppose there is 1000 (trillion or billion) in the market and fee+tax is 50 every year (in average). Then after 20 years, 20*50=1000 is all gone to broker+IRS. Although someone exists as a (after fee+tax) winner, he is NOT so rich since he ALREADY paid much of fee+tax for 20 years too. With the TR=TaxRatio=(fee+tax)/profitBeforeFeeAndTax, 95% of all traders shows TR>100% and ONLY 5% of traders shows TR<100%, in my guess. Even for the consistent winner, his TR may be >=50%.
Recall that there has been 400 years since stock market was open in Holland. How much they paid for the commission and tax FOR THE 400 years? IMHO, traders paid more than the current prize pool (1000 in above example). For short summary, I like to say "Please find a strategy with as little fee+tax as possible, in order to be a winner with 50% < TR < 100%". If not, you cannot come back here in ET, many years later.
For example, after 30 or 50 years later, please never say "I won 1000K but after paying fee+tax of 800K there is only 200K left, which is less than the index performance." Suppose there has been annual 6% compounded in THE INDEX, then initial seed should be 1.06^50 = 18.42015 times. Therefore, with seed of 10K, you should have 180K following the INDEX only.
Unless you primarily trade your 401k, 98% of my trading has always been in my 401k and past few years Roth IRA and not old enough yet to start taking it out. I have? till 70.5 yo to start taking out I think. But you are right, the brokerage fees especially in day trading especially if you are retail, you have to make 100-200% each year to breakeven, of course I am going with low profits per trade and I do know of a few great day traders on the forum who consistently make really nice bigger profits staying in for hours unlike me staying few minutes. If one is doing size, huge difference leasing seats than retail. I can't imagine how much less I have if I had to pay taxes on 401k. The Roth IRA one of better deals around, and if traders got to be good at trading, am sure government would shut it down.
401k and Roth IRA deal with retirement accounts, you don't pay taxes on the monies you make in 401k, you pay taxes when you take it out and Roth you pay taxes on money you initially put in but not when you take out. What else do you not understand?
How long did it take you to become a **consistently** profitable trader??? The last trade I put on today The first trade I put on tomorrow And the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that..., and the one after that Becoming / being / remaining a consistently profitable trader ain't a one and done deal It begins..., is reinforced (or not)..., and ends - with each and every trade Till one walks away from this gig There is no relenting..., there is no do over (there is possibly picking up the pieces and moving on) But each slip up takes a toll - not only in money..., but also in emotional capital (the most precious capital one possesses) With enough..., or even one great enough slip up - recovery is not an option (monetarily or emotionally) Never under any circumstances allow it to go there..., you'll be fine Allow it..., even once - you're fucked Plain and simple ================ btw - volatility makes us all think we're competent traders - don't kid yourself Food for thought..., or naught RN
You are very correct, so many that started when high volatility collapse when markets return to normal and then many bust out cause they never learned to chart read.