The 5 Most Dangerous Trends Facing Day Traders Today
Don't make another trade until you read this!
Studies from various brokers in and out of the US show an alarming trend towards day trading that you must know about.
- Studies show the majority of day traders are reluctant to close out losing positions. This is known as the disposition effect, a scenario where the trader quickly closes out winning trades, but holds onto losing trades.
- There is a proven negative correlation between long term success and active day trading.
- Two thirds of day traders were unprofitable.
- The average day trader executes 13.5 trades per day and while he may be close to profitability, more often than not he cannot break above the commission structure, because winners are so small.
- <1% of day traders are profitable year after year, these stats are worse than new business startups.
A Day Trader is classified as one who opens a positions and sells that position within the same day. What is very interesting is that there is a negative correlation between long-term success
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