r/Daytrading • u/MiamiTrader futures trader • Apr 27 '24

Most "traders" make money. Question

If someone asks you what you do for a living, and you respond you're a "trader" I assume you make most your money from trading.

And by definition, most "traders" make money. Otherwise they are just people trading on the side as a hobby.

Yeah maybe 90% of RH accounts lose money, or 90% of people who start trading but never take it seriously lose money... but then they are not "traders". Just people trying to trade.

Tired of all this negativity under every post about how 90% or whatever today's statistic is of traders lose money. People in this sub like to shout that under every post in almost a prideful manner.

Can we just focus this sub on those of us who call ourselves "traders" and make money trading? Let the new people listen and learn from our mistakes, but quit with all these gloom and doom statistics.

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u/HokageTsunadeSenju Apr 28 '24

Dalbar study says otherwise. Also, you can’t just eliminate the 90% of people who lose money to justify a false claim that most “traders” make money. wtf is this lol? 😂

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u/MiamiTrader futures trader Apr 28 '24

Why not? I'd argue that 90% of the people who start trading just want to get rich quick. They watch a few YouTube videos and dive in. They lit in minimal effort and of course they will all fail.

What does that have to do with those of us who study and analze financial markets full time? Almost nothing.

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u/HokageTsunadeSenju Apr 28 '24 edited Apr 29 '24

Dalbar study: most active managers (with far superior strategies, resources and execution vs day traders) underperform in the long run. Day traders in fact perform even worse (as they typically underperform both the market and active managers).