If a trader truly has compounding and survival and trading skills.. they can easily surpass 100% a year. Averaging a healthy compound trade after trade is possible and powerful. There's nothing wrong with the phrase 'Get rich quick' even though it's associated with alot of scams. In the trading world, it's quite possibly the one exception if a trader can anticipate the future. Expectation refinement. Vagueness removed.
Unfortunately for your topic, the reality is that only a small minority of traders are consistently profitable — and of those, few if any are earning more than minimum wage from trading alone. The most effective way to build real wealth in this game isn’t through constant trading — it’s by investing in growth stocks and dividend-yielding assets, and letting time, compounding, and income work in your favor. AI Overview It is accurate that less than 1% of day traders earn more than minimum wage. Studies consistently show that the vast majority of day traders lose money, with only a small fraction achieving profitability. Specifically, research from Brazil indicated that only 1.1% of retail traders earned more than the minimum wage over a year-long period.
That's a pretty sad brag considering that you can make 130% just putting the money in a high yield dividend lol.
Thanks for your reply – really interesting perspective! I find it very insightful that, in your view, profitability depends more on experience and understanding the market than on any specific strategy. That's a new idea for me. Appreciate you sharing your story!
I'd like to swing trade, position trading feels too similar to casual investing, which I'm already doing in some way. That quote you mentioned is a good one – very true.
If they understood cycles, they’d be forecasting these future events well before they materialize — instead of reacting to them as they unfold or trying to capitalize on them based on macro noise. The whole point of market analysis is to anticipate, not interpret.
I guess you'd call what I do position trading. I will hold a position for as long as it keeps performing. The let your winners run part of the equasion.