You can lose more in the stock market than you would lose more in a casino. Why ? A casino doesnt give 4-1 margin. Serioulsly, ive seen more guys lose their life savings playing the stock market opposed to gambling. The stock market can convince you its not gambling but it is. Particularly day trading. They always say 95% of daytraders fail. I think its higher but lets assume 95% is true. What other occupation offers odds such as that? Engineering, chemist, sales, IT, consuging, mechanics, contractors, software engineers, banker?? None !!!! How many times does a daytrader say “ i should of stuck to my discipline, i need to refine my strategy”? They are always thinking they are so close to being successful, its right around the corner but it never is. The thought that daytrading is some kind of legitimate occupation is what keeps people constantly getting loans in order to stay in the market. Bad move, the money will go quick! The only other occupation that comes close to the failure rate of day trading is maybe a hollywood actor or becoming a famous rock star.
1. Hundreds of times it has been said - it is more between 70%-80% who fail 2. On this board alone there are many succesful futures and stock traders that act on low timeframes 3. Most traders fail not because the market is unbeatable but because they are uneducated in trading or hardly experienced when they begin trading real money. 4. Those who prevail tend to stick this knowledge to themselves as bragging attracts the wrong people.
I think anyone who trades with margin is asking to have their funds taken away. Day trading requires more discipline and a different set of rules, and anyone who jumps in it without learning the market is a thrill seeker.
I think the failure rate is more than 80%. I traded at a daytrade firm years ago when they were all over. Almost every single guy is now a former trader.
A fool, is a fool in any place, be it casino or the market, so it's not about the game, it's about how one approaches that. Dedication, problem solving, patience, tenacity, belief that one day will be your day, based not on hope, but on the effort. Those are some rare qualities in general population ; meanwhile, one would find plenty of : i want to be rich & i want it now. No, no, no... Doesn't work like that. Put this on, dream about it (cast yourself a vision) and get back to serious work (learning), to achieve those goals :
90% of roulette players fail. Lmao there literally are guides on the internet to become a better casino player. Brazilian study where day trading the indice is super popular: The day traders that traded only 1 day: 29.8% made money The day traders that traded 2 to 50 days: 15.5% made money The day traders that traded 51-100 days: 8.9% made money The day traders that traded 101-200 days: 6.8% made money The day traders that traded 201-300 days: 5.4% made money The day traders that traded > 300 days: 3.0% made money There is no learning, the longer they trade, the more likely they are to lose. Over a long enough period the percentage goes to 0%
The failure rate for daytraders is much higher than any other occupation except maybe a rock star or hollywood actor.
Of course you're correct about a high trader failure rate. However... the REAL problem is that players risk too much (leverage?) before they "know what they are doing". In gambling/casino, you're SUPPOSED TO LOSE.... the odds are fixed, against you, and there is nothing you can do to put the odds in your favor (card counting excepted). In trading, YOU'RE SUPPOSED TO WIN... if you're smart, experienced, and disciplined enough. It's illogical and wrong to equate "trading the markets" with "gambling".
to place your data in perspective: This is a big fat dirty secret: of the 2108 of “trade rooms” sites, 2080 do not trade - at all - not a peck. So 98.7% of all "trade rooms" are really sales rooms!!!!!!!!!!
This is all HOGWASH... for properly experienced traders. And of course "90% of roulette players fail". The real odds are that 100% fail if they play long enough. The odds of winning are against you and there is nothing the player can do to put the odds in his favor. None of that is true in trading. Traders lose in the markets because they're in a hurry to get rich... risk too much, too soon... and "don't know what they're doing". PERIOD!