What percent of active traders earn money?

Question

I have heard all kinds of figures, and there must be some reputable number out there somewhere. I'm looking for a link to these kinds of statistics. I'm just curious.

Thanks for your help!

Answer 1

Depends on what your trading. you never specified.

Answer 2

There's a major difference between active traders and professional traders.

There are various types of traders, and each product has its own definition of a trader.



There are no real records maintained that indicate how much money professional traders make let alone "active" traders.

In the brokerage industry the only thing that provides some indications are periodic surveys that publications put out but none of the are accruate.

There's no way your going to get any reliable statistics especially since there are many types of traders and traders in various markets and products.

You can't link statistics, because there aren't any, and what types of traders would you link, what markets would links, what products would link.   There are too many variables, with no reliable source of data of any of them

I will say this about professional traders, they all make money in both good markets and bad markets.  When there's volume in the market, more than 90% of them are profitable.

Answer 3

10% of traders make consistant money over the long term.

90% either break even or lose money in the long term.

Trading is just like starting a business where 95% of bussiness fail in the first 5 years 90% of traders do too.  It is only those who take the time to constantly manage their risk and develop their systems will ever have any lasting success.

Answer 4

I don't think you'll find any solid information on that. Also depends upon how you define an "active trader." No one really keeps track of that info. I doubt if any brokerage would be willing to tell you how many of their clients are losing money.

By definition, half of all stock investors (as a whole) do worse that a total stock market index fund (discounting fees, which are minimal for an index fund).