As we approach the spookiest season of the year, let’s discuss the spookiest statistic in the industry. If you attended trading courses via YouTube academy you’ve probably heard these statistics various times. “95% of traders fail.” This doesn’t mean that they lost a trade or two, nor does it mean they lost more than they’ve won. Instead, this statistic is calculated by determining how many traders lost their entire investment account within the first year. Being a day trader requires discipline, consistency, and most importantly patience.
- 80% of all day traders quit within the first two years.
This stems from the lack of preparations and expectations on the market. You’re most likely sold success within the industry, which likely looks similar to a highlight reel of Wolf On Wall Street. Day Trading is now seen as an influencing occupation that lets you get “rich from your phone,” with a rise of trading platforms in the tech industry. These companies net more than Wall Street firms and decline to provide user success percentages to prove investors are achieving success on their platform.
- Within each income group, gamblers underperform non-gamblers.
A direct result of a lack of discipline. The reason why trading accounts with less than a $10k balance aren’t prohibited to multiple trades a day is a clear reflection of this stat. This was put in place as a way not only to make sure the income gap disallowed those less fortunate from participating but also to lessen the possibility of the stock market becoming an international casino for the greedy.
- Investors tend to sell winning investments while holding on to their losing investments.
“What goes up, must come down” does not in any way relate to the stock market unless you are on the cast of The Big Short. Investors tend to let their stubbornness plague their trading rules. A stop-loss has to be the most essential tool to traders, but often you see investors remove it or lower it in hopes his prediction on the market transpires.
- Individual investors trade more actively when their most recent trades were successful.
As mentioned earlier, most investors are sold a destination of wealth and fame in the stock market and that requires a tremendous amount of reoccurring success. A higher percentage of winning day traders make consistent winning with a monthly or weekly withdraw from their trading account to fund their lifestyle. You must know when to re-invest and when to walk away and enjoy.
- Among all day traders, nearly 40% day trade for only one month. Within three years, only 13% continue to day trade. After five years, only 7% remain.
The reality about day trading proves how complex, and unreliable it is. The mentality sold can prove detrimental. People are looking for a way to increase their wealth outside of their 9-5 with little access to investment opportunities, and knowledge on the stock market. Our platform focuses on all five statistics mentioned above to better educate our audience on why AI is the more successful reliable form of trading. If you review the 5 stats again you will notice they come from flaws we possess from the expectation we’ve been sold. These algorithm accounts aren’t focused on your lifestyle, rather focused on winning more than losing. At the end of the day that is the key metric to the concept of investing. Taking a certain dollar amount, setting a realistic goal behind that dollar amount, and watching it grow over time to your desired amount. You still have full control with our algorithmic pairing and portfolio tracker that allows you to choose which AI to invest in and track how it progresses.