I see your point, but the stats are showing the average income, including the profitable ones (4%), and the losing ones (96%). It's my understanding that it includes the average income of the ones who had left the party (96%). Unless the stats are only showing the ones making money.
Yep. I'm suprised it's 4%. I bet only 1% make a decent living mean at least over $100K/yr. Anything less than go get a fckin' job! Even new grads at top tech companies get close to $200K/yr(base+bonusm, benefits, RSUs, etc.) risk free.
I'm sure they do include the failed traders during the time they are trading. But then they don't. It's like asking how much money the average car company makes. No one answers that question by first researching the 2,500 failed car manufacturers from the last 100 years.
It is also important to realize that this is not a random sample. When you give people money to trade and give them a little education you have limited your study. There are many successful traders, myself included, who laugh at this and would never be part of that crowd. We aren't being counted.
No new grad earns 200k out of the gate other than the top 5% or so that hail from top schools and learned to code at age 7 and are extremely proficient at age 18 or 19. Starting salary for most jobs is still in the 45k-65k range. That pre-tax. Why do you think it is so enticing for many to live the bohemian lifestyle in mom's basement?
I am very sure that those stats do NOT include failed traders. Same with market return. When we speak of market returns we need to define some sort of benchmark, often times the SPX for example. The SPX returns do not account for bankrupt companies. It measures performance of those companies that are included in the SPX, hence operating entities, and weak ones are removed and replaced by those with higher market cap. Equally here, bankrupt traders are most likely not included by the definition of OP.
%% [a] GREAT South American study\ i think they meant made only one[ daytrade] trade per day, in a years time[Quote ='' made only a single day trade all year/LOL] WOW on the much smaller net %; but that is good for the Daytrade Co [z]I cant prove this, but i figure the few millionaire day traders, trade more than once a day or. year Easily proved, the many more millionaire investors in stock market, buy more than than once a year.
This just confirms something that we already know, the success rate is only 5% with trading. This profitability % has been confirmed in trading with all assets, stocks, options, futures, forex... There is not one asset that's "easier" to trade.