Why Do Most Day Traders Fail?

DarkerthanDarc · May 20, 2025 at 1:45 AM

#1 – Most quit early

#2 – Cognitive bias leads them astray

According to Barber, biased trading means “successful traders become overconfident and unsuccessful traders are slow to realize that they have low ability and to curtail their trading.”

Profitable traders stand out because they refine their strategies based on data and market feedback. Most traders, however, persist despite losses due to overconfidence and cognitive biases, contributing to a market largely driven by unprofitable activity.

#3 – Most have limited experience

Time and experience in the markets seems to correlate with better results. Barber et al found that traders with more than 50 days of experience are more likely to show some profitability.

To put this another way: you are very likely to lose as a day trader. But if you have the patience, the persistence, and most importantly, a strategy, you may be able to survive those early losses and succeed in the future.

#4 – It’s too time consuming

One of the biggest misconceptions about day trading is that you can just “squeeze it in” between meetings or after work. You can’t. If you’re serious about it, day trading quickly becomes a full-time job—without a salary, without benefits, and with no guarantee you’ll make anything at all.

The truth is, most people just don’t have the time or bandwidth to compete—and the market punishes those who try to cut corners.

https://www.newtrading.io/is-day-trading-profitable/

Faizanidrishi · May 20, 2025 at 1:53 AM

DarkerthanDarc said:
#1 – Most quit early

#2 – Cognitive bias leads them astray

According to Barber, biased trading means “successful traders become overconfident and unsuccessful traders are slow to realize that they have low ability and to curtail their trading.”

Profitable traders stand out because they refine their strategies based on data and market feedback. Most traders, however, persist despite losses due to overconfidence and cognitive biases, contributing to a market largely driven by unprofitable activity.

#3 – Most have limited experience

Time and experience in the markets seems to correlate with better results. Barber et al found that traders with more than 50 days of experience are more likely to show some profitability.

To put this another way: you are very likely to lose as a day trader. But if you have the patience, the persistence, and most importantly, a strategy, you may be able to survive those early losses and succeed in the future.

#4 – It’s too time consuming

One of the biggest misconceptions about day trading is that you can just “squeeze it in” between meetings or after work. You can’t. If you’re serious about it, day trading quickly becomes a full-time job—without a salary, without benefits, and with no guarantee you’ll make anything at all.

The truth is, most people just don’t have the time or bandwidth to compete—and the market punishes those who try to cut corners.

https://www.newtrading.io/is-day-trading-profitable/
More...

Most fails because they see trading as a get rich quick scheme.

Rest fails because they don't consider trading as business.

More fails because they overlook back testing.

If i am getting kicked out of market majority of the time its not market fault its my fault and if i am not accepting this and blaming market over this i will fail too.

maxinger · May 20, 2025 at 2:33 AM

DarkerthanDarc said:
#1 – Most quit early

#2 – Cognitive bias leads them astray

According to Barber, biased trading means “successful traders become overconfident and unsuccessful traders are slow to realize that they have low ability and to curtail their trading.”

Profitable traders stand out because they refine their strategies based on data and market feedback. Most traders, however, persist despite losses due to overconfidence and cognitive biases, contributing to a market largely driven by unprofitable activity.

#3 – Most have limited experience

Time and experience in the markets seems to correlate with better results. Barber et al found that traders with more than 50 days of experience are more likely to show some profitability.

To put this another way: you are very likely to lose as a day trader. But if you have the patience, the persistence, and most importantly, a strategy, you may be able to survive those early losses and succeed in the future.

#4 – It’s too time consuming

One of the biggest misconceptions about day trading is that you can just “squeeze it in” between meetings or after work. You can’t. If you’re serious about it, day trading quickly becomes a full-time job—without a salary, without benefits, and with no guarantee you’ll make anything at all.

The truth is, most people just don’t have the time or bandwidth to compete—and the market punishes those who try to cut corners.

https://www.newtrading.io/is-day-trading-profitable/
More...

------------- quote ----------

That is why millions and millions and millions of long term investors retire extremely rich.
During their younger days,
they closed their eyes and just buy any stocks.
A few decades later, they opened their eyes and tons of money drop from the sky.
Just look at the US index futures, BTC, gold ..... (and the list goes on and on and on);
it keeps on going higher and higher and higher.

For day traders, they have to sweat blood every single day.
Yet success is not guaranteed.

------------------------ unquote -----------------

Now that will make you very happy.

But then why all the traders/investors
in the trading hub/houses are day traders?
And they have to pay > $1K / month just for renting a trading desk.

semperfrosty · May 20, 2025 at 4:46 AM

maxinger said:
------------- quote ----------

That is why millions and millions and millions of long term investors retire extremely rich.
During their younger days,
they closed their eyes and just buy any stocks.
A few decades later, they opened their eyes and tons of money drop from the sky.
Just look at the US index futures, BTC, gold ..... (and the list goes on and on and on);
it keeps on going higher and higher and higher.

For day traders, they have to sweat blood every single day.
Yet success is not guaranteed.

------------------------ unquote -----------------

Now that will make you very happy.

But then why all the traders/investors
in the trading hub/houses are day traders?
And they have to pay > $1K / month just for renting a trading desk.
More...

Hands up everyone renting a trading desk.

Laissez Faire · May 20, 2025 at 4:50 AM

DarkerthanDarc said:
#1 – Most quit early
More...

Most quit too late wasting years of their life and $$$.

Snuskpelle · May 20, 2025 at 5:11 AM

High overhead + no edge (except maybe beta, but on pure intraday basis nope).

Wording cited by OP suggests subtle marketing "you only need to work hard and get experienced and everything will work out!" Did not click site link admittedly so I don't know what is on offer.

Sekiyo · May 20, 2025 at 6:35 AM

Risk too much, too often.

tony.m · May 20, 2025 at 6:37 AM

Why did the chicken cross the road ?

MarkBrown · May 20, 2025 at 8:31 AM

i think if you don't have a legitimate experienced mentor it will be near impossible to trade.

unless you are intj

SimpleMeLike · May 20, 2025 at 8:51 AM

DarkerthanDarc said:
#1 – Most quit early

#2 – Cognitive bias leads them astray

According to Barber, biased trading means “successful traders become overconfident and unsuccessful traders are slow to realize that they have low ability and to curtail their trading.”

Profitable traders stand out because they refine their strategies based on data and market feedback. Most traders, however, persist despite losses due to overconfidence and cognitive biases, contributing to a market largely driven by unprofitable activity.

#3 – Most have limited experience

Time and experience in the markets seems to correlate with better results. Barber et al found that traders with more than 50 days of experience are more likely to show some profitability.

To put this another way: you are very likely to lose as a day trader. But if you have the patience, the persistence, and most importantly, a strategy, you may be able to survive those early losses and succeed in the future.

#4 – It’s too time consuming

One of the biggest misconceptions about day trading is that you can just “squeeze it in” between meetings or after work. You can’t. If you’re serious about it, day trading quickly becomes a full-time job—without a salary, without benefits, and with no guarantee you’ll make anything at all.

The truth is, most people just don’t have the time or bandwidth to compete—and the market punishes those who try to cut corners.

https://www.newtrading.io/is-day-trading-profitable/
More...

Good Morning DarkerthanDarc,

I 100% DISAGREE with EVERYTHING you wrote. Your write up is 1000% WRONG and 1000% Bullshit!!!

@MarkBrown beat me to it!! @MarkBrown said it absolutely correctly, 1000% correct.

Traders fail because of 3 REASONs and 3 REASONs only:

1. Traders fail because they do not have the CORRECT trading mentor(s) and an experience trader(s) to show them EXACTLY how to make ALOT money!!!!

2. Traders fail because they do not have the CORRECT trading mentor(s) and an experience trader(s) to hold the trader accountable to make ALOT money!!!!

3. Traders fail because they do not have the CORRECT trading mentor(s) and an experience trader(s) to challenge them and punch 1000 holes through their trading strategy/plan seeking failures points to make ALOT money!!!!

Without the 3 above, just like @MarkBrown stated so wisely, is EXACTLY why traders fail.

It is ALMOST impossible to make money in the ES Futures trading market without the 3 above. Forget about it, unless you have a VERY scientific and engineering back ground.