Retail.... 10% actually win?

Discussion in 'Trading' started by schizo, Apr 4, 2024.

  1. schizo

    schizo

    I should have prefaced it with "the safest way". With the right approach to a combination of dividends and rentals, especially if you have commercial RE, you're generating a steady stream of monthly income. And then you can use that income to invest. That ain't something you can achieve with Roth, ETF, UPRO, let alone bowhunting. :)

    Anyway, to each one's own.
     
    #31     Apr 5, 2024
  2. ironchef

    ironchef

    There's a sucker born every minute
     
    #32     Apr 5, 2024
  3. schizo

    schizo

    So so true.
    [​IMG]
     
    #33     Apr 5, 2024
  4. There are some official statistics in Europe, you know, the land where governments actually care about people:

    It is around 60% of losers on average.

    Everything is coming from the ESMA, now forcing brokers to disclose the way they rip off their customers.
    The answer is tricky because it varies from products to plain scams:

    I couldn't find anything about derivatives and stocks but Forex and CFDs are very well analysed.
    https://www.traderslog.com/what-percentage-of-traders-lose-money
    https://www.linkedin.com/pulse/what-retail-traders-losing-money-2023-comparing-esma-cfds-anya/?trackingId=mOZg97UrT0GOi6ftkXxoYA==

    If you browse brokers' websites that offer CFDs in Europe they must show a banner at the top of the page showing the amount of losers they have:

    https://www.ig.com/en/cfd-trading/what-is-cfd-trading-how-does-it-work

    I'll keep digging for derivates.
     
    #34     Apr 6, 2024
  5. newwurldmn

    newwurldmn

    FCM’s have to post some info. I think last time it was posted here some 3-4percent made money in a given month. But only like 1percent made money for 4 months.
     
    #35     Apr 6, 2024
  6. schizo

    schizo

    Since FCMs must file their monthly financials with the CFTC, it shouldn't be too difficult to gather and publish this data. But then again, this would just become a self-fulfilling prophecy and only scare prospective traders away. Nobody wants to flock to the futures if 90% end up losing.

    Or you can think of it this way. CFTC is not publishing this data because it is true that failure rate verges on 90%. :)
     
    #36     Apr 6, 2024
    NoahA likes this.
  7. Overnight

    Overnight

    I'm sorry, Schitzy, I am not following the point of your thread?

    Don't make me come over there...

    https://www.cftc.gov/sites/default/files/2024-04/01 - FCM Webpage Update - February 2024.pdf
     
    #37     Apr 6, 2024
  8. schizo

    schizo

    Yeah, like I didn't do my due diligence before giving my 2 cents. :rolleyes: So what does it say about traders' failure rate? That's right, it doesn't tell you because there ain't any. Ggrrr...

    Anyway, good to know you're not part of that coveted 90% yet. :thumbsup::sneaky:
     
    #38     Apr 6, 2024
  9. Overnight

    Overnight

    May the eclipse be with you!
     
    #39     Apr 6, 2024
  10. ajacobson

    ajacobson

    The industry allows you to buy the data compiled by RSM. The subscribers do it to get a sense of their competitive posture. If you're on the brokerage side, it is affectionately known as the McGladry reports. Finra does an annual snapshot of their collected data, and that has limited use to non-Finra members. The SSAs do a deep dive of McGladry every 36 months, but it's a year behind. A couple of relevant takeaways and I haven't seen it in a while.
    The more frequently you trade the poorer your performance. The holding period for losing trades is very short-term positions is extremely short term - no real surprise. SSAs also did their own study and this was a common thread. PFOF has hurt performance, but that probably threads back to the frequency issue. The W/L overall is about 50/50. Was told it's done by looking at customer PnLs, account data, and revenue trades. 2024 should show extraordinary growth with 0DTE options.
    Many major college libraries are subscribed.
    When I worked on that side of the industry I got to sit in a couple of SSA focus groups and almost every one of the attendees believed their performance was outstanding. Behavioral finance - that may be a self-selection process of folks who want to earn a few bucks..
    Here. the Gleacher Library is a subscriber.
     
    #40     Apr 6, 2024
    swinging tick and newwurldmn like this.