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Considering day trading, and wondering what the day trading success rate is? Numbers varied slightly, but were inline with the day trading success rates I discuss below. While the article focuses on day trading, because I have the most data on it, I assume the same stats approximately hold true for swing traders or any short-term speculative trading endeavor. This is a long article, but I suggest reading it all. What you need to know is how to be part of the successful traders, and avoid being in the unsuccessful category.

We expect more see How Much a Day Trader Can Make …but read it later. For a five year period that means about people came to the trading firm and took or at least started the training program. Only 14 women and men, including myself moved on to become regular traders, producing consistent profits for at least several years. Approximately another 10 made money, but not enough to keep them trading. But who wants to trade to just break even? None of these traders put up their own money to trade.

They were able to trade firm capital; more firm capital would be allocated to each trader based on performance. In other words, conditions were very favorable—oh, and because we had more capital, we traded bigger positions, providing for greatly reduced commissions compared to what a normal stock day trader would face. Favorable indeed, and yet only 3. We need to consider some things when looking at a 3. Therefore, we have some blind spots in my statistic.

They left it up to the trader to decide how they would trade. Regardless of the reason, very few people who wanted to trade actually become successful. They came to trade, but ultimately left with nothing in their pockets while people sitting next to them continued to make money. To me that is the real statistic. Be careful how statistics are used. Then again, being a good mentor is more than just being a successful trader.

Some of my greatest trading lessons have come from non-traders; they were just good teachers, and understood what I needed. I have developed my own strategies, and often input from others has actually hindered that objective personal strategy development.

Now some mentors are better than others. Some may offer absolutely no benefit, and you have the same 4. If there is one thing I can definitively say, it is that women make much better traders than men. Only 10 women came to trade smaller sample size while I was at the firm. If we just look at males, the successful rate drops to 3.

So we have a 3. So the overall success rate is still useful to men still in the 4. I verified these stats with multiple current or former trading firm managers; their stats were very close to those mentioned above, creating a larger and viable woman-trader sample size. In a male-dominate industry, the women who came to trade typically really wanted to do it, and were serious about it. Not a good start. Be serious and commit to the process—just as if you were starting a brick-and-mortar business—if you want to have good odds of day trading success.

They are more readily able to learn from their mistakes. A man will repeat the same mistake over and over again, unable to admit to himself he is wrong because of his ego. Very few people who were unprofitable for even several months continued to trade. For most of those that became successful, about 6 months of approximate full-time hours about hours seemed to be the magic number where they flipped the switch and began making money.

If a trader continued to put in a lot of hours beyond 6 months, but was still unsuccessful, how did they ultimately fair?

Only 7 traders who were unsuccessful within the first year, continued to trade beyond the 12 month mark. Most of these traders simply continued to make the same mistakes over and over again, failing to learn from their mistakes. Some people do learn from their mistakes, it just may take them a year or more to figure it out. I should note, the one successful trader out of this seven, traded unsuccessfully for slightly more than 2 years before becoming consistently and sizably profitable.

All these people who failed, and who were successful, were putting in 6 to 7 hours a day of practice and learning. So you will definitely need to put in time and practice if you want to become successful.

As we will learn later though, it is up to you to practice the right way you can tell someone what to do, as the firm did, but unless they are willing to do it, no amount of practice will improve their skill. I constantly see this on the golf course. Guys have played for thirty years—lots of practice on the course and on the range—yet are no better than the day they started and they bitch about it. Instead, perfect practice only leads to improvement. It is only later on—often a year or more—when trading becomes a truly part time gig.

Or, if only putting 1 to 3 hours a day during the week, then you will probably need to put in some hours on the weekend as well. You need to put in the work if you expect it to payoff. This will very likely lead you to lose whatever capital you have deposited in your brokerage account. The odds of day trading success are heavily against you. Trading is a job. Day trading is often boring, which surprises many people.

Other days, an hour or two of trading can leave you mentally, and physically, exhausted. There is so much information to process in such a short amount of time…and you need to stay totally focused in such conditions as a mistake could cost you dearly. If you trade, your profits have to come from someone else losing or giving up a profit.

Successful traders have been doing this a long time, and have wiped out many small and new traders. Know how you will handle every single situation which may arise, and have a plan for it. How to Day Trade the Forex Market In Hours or Less a Day. While it uses examples from the forex market, the concepts apply to day trading stocks or futures as well.

Strategies are important to, but so is learning how and when to implement them. The overall figures indicate that if you are male, you have about a 3. If you are serious about trading, and commit six months to a year of really self-evaluating your performance and practicing , I believe your odds of success are high. In my experience, and opinion, women have a much higher chance of becoming successful traders than men.

Are these stats perfect, absolutely not. They are averages and cannot be used to ascertain whether a particular individual will be a successful trader.

Yet there are successful traders who obviously have overcome the odds. That said, not everyone who practices really hard at basketball gets to play in the NBA. The nice thing about trading is that you decide how much you are comfortable with making.

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While there are guys making millions a year, if you can make a comfortable living, doing what you love, that is what matters. Check out the Forex Strategies Guide for Day and Swing Traders eBook. All firms from which these stats were derived will remain anonymous. Using a sample size of 10 to make bold claims that go against common grain statistics?

Since I orginally wrote this article, I have about 10 more data points for women. While this is still a small sample size, the statistics are holding true.

The numbers for women continue to be WAY higher. Also, remember that while I only had 10 data points now 20 I continually talk with other trading firm managers and educators to confirm the statistics. They continue to indicate a much higher success rate for women. Combined, these inputs provide more than data points…still not ideal, but definitely noteworthy.

I was a successful day trader for almost 8 years. The greatest causes of successful tradersk vs. Wake up early, read IBJ, WSJ, or whatever publication you like the best, and settle in to watch CNBC before the morning bail.

Tomorrow is another day. That is a recipe for disaster. In all my years I never touched Forex, small cap stocks, etc. Also, perfect your technique as best you can by doing false paper trades along the way and measure your success rate along the way. Do not, EVER, and I mean EVER, be afraid to admit that you were wrong. When I first started I did what most people do, or what we thought was, swing trading.

At the time I was consistently losing with a small account. Looking back, I had no business trading. I took a break, studied, read a few books, watched some videos, watched more price action, and came back a little less consistent in the loses.

I knew I was on to something. I still traded with a SMALL account with stocks. Read even more books, videos, watched more price acction, and this time I started to really focus on building a strategy. I took my small account to Suretrader to avoid the day trading rule for small accounts. At first, I made every mistake in the book since this was my first unrestricted trading. I knew what I was likely to do and still made those decisions.

When I was trading this time, I spent the entire day watching the screen. I made lots of money and would have had a nice profit over this time frame, however the commissions and fees kept me from profit reaching potential. I also followed a paid guru since I figured I could mimic some of the other traders moves and find out how they are actually trading by back-testing.

The service sent out alerts to buy said stock. The issue was that they were basically nano stocks and with over subscribers made the stock jump consistently by the time you looked at the alert. He was also very unprofitable IMO, taking losses upward of 25k on a trade and blaming it on a technical issue. They pushed a millionaire program that cost like 30k promising great returns and giving a few of the star examples.

Just say no to this crap. Though I followed a few trades from this, taught me more about myself and that it was up to me to learn my own and navigate my own ship. I was more determined than ever.

You couldnt stop me from reading and watching price action, testing strategies, looking for clues, predicting small price fluctuations live, back-testing my trading, etc. I planned on returning to the stock trading, and used this time as a prelude to the next trial of daytrading on Suretrader. I attended a forex meetup and decided to fund one later with a nano account since it appeared that the commission was soo low. This is where I found my expertise.

I found my strategy in the process of this period. I still made a few mistakes the first few weeks testing forex, its boundries, what to expect, etc. The most important part was that I had developed discipline to follow all the money management rules. I found my niche and it fits my style.

It is aggressive short term to reduce market risk holding thoughout the day like others do. I originally was trading on the 1 minute, moved to the 5 minute, and found the 15 minute time the most profitable for me. I am still using a nano account so I am already at a disadvantage with commissions. Now I am still holding the nano account to prove the profit potential for me.

I am studying how to code in-order to back-test any strategy and perhaps automate this one. I will be upgrading the account once I prove to myself that I can handle bigger losses without making rash decisions in a draw-down.

I am also improving my own strategy to make it more efficient, REDUCING NOISE. I wrote all this to speak to that one person trying to make it out there, you may be at one of these stages struggling on finding out what to do.

You may be looking to spend that k on a mentorship. You may be looking to pay tons of money for guru videos. You may just be on the verge of a breakthrough. You cant follow a strategy without testing the limitations. This path, IMO, is all about self development. I put what I was looking at and my mentality at the time. If you cant fill up a page journal with your narrowed research and thoughts, you might not be there yet. Great read, I hope to learn a lot from reading the links you posted along the article.

If I tried to be a lackey for these fat cats, I certainly would not accept any training since that would not result in future success for me. They want to think they understand when such a thing is a waste of time. Great returns are available, no question about that. But it is not typical. It is important to show what is possible so thanks for your comments but it also important to show the risk. Then, not that long ago, I was on an investing sub-Reddit and was shocked at how many of the people there who claimed to be active traders knew virtually nothing about trading.

In a similar fashion, I previously read horrible online reviews about a popular options training video course, but when I read the reviews closer, it was evident that many if not most of the disgruntle purchasers who had posted were people who had no business attending an options seminar where they purchased the video series in the first place.

So I decided to get to the bottom of things and dabble a bit myself just in search of the truth.

Using simple MA, MACD, Bollinger band, RSI, and Stochastic indicators I have for the most part consistently been able to determine market direction with some anomalous exceptions.

Any advice, insights, or suggestions would be appreciated. I agree with most of what you say. Sure, I had a lot of ideas and things that worked in theory, but when I actually started trading I was given a real reality check. So pretty much everyone is an idiot when they start out…just like when someone starts out in any field. So I definitely think that any self-regulating and self-evaluating person that seems to be somewhat of a rarity?

Increase position size only with profitable consistency. Without these steps, most want-to-be-traders will be out of capital before they even really learn anything. Most people when they start trading find out that trading is mostly psychological.

Great strategies are everywhere. What people struggle with is following them. When real money is on the line, and the price is darting all over the place, people start to make mistakes. That is why practice is required.

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So it takes time and self-evaluation, but lots of people are successful at it. As always, i learn a lot from reading you and i have been trading stocks for close to 3 years and thought i knew a lot……now i know i have been making lots of mistakes and not taking the time to learn. The Thorough Answer Posted on June 16, by Cory Mitchell, CMT.

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Of those that become profitable, how many are consistently profitable enough to make an income. Problems with my numbers, factors we need to consider and some revisions which may be more accurate. How a mentor may increase or not increase the odds of success.

Is time a factor? Of those who were unprofitable in their first full year , how many of those who kept at it practicing for more than a year ultimately became successful.

Why I think these numbers are applicable to anyone who wants to start trading at home, with a mentor, or for a firm. Analyzing the Day Trading Success Rate: Day Trading Success Rate…only 4. Things to Consider We need to consider some things when looking at a 3.

Day Trading Success Rate: Women If there is one thing I can definitively say, it is that women make much better traders than men. Is Time a Factor?

The Odds of Day Trading Success: What it Takes Want be in the 4. Final Word The overall figures indicate that if you are male, you have about a 3. Best wishes on your journey. June 5, at Cory Mitchell, CMT says: Yes, very small sample size. That is noted and dicussed in the article. Use at your discretion.

January 22, at A few of us survive, but not many. January 7, at I notice that traders follow a series of steps that seem to mimic mine.

Good luck out there. September 27, at September 16, at October 26, at July 24, at Hi Cory, Excellent article. June 19, at Leave a Reply Cancel reply document. Sign Up for Our Free Trading Newsletter. How to Day Trade Stocks In Two Hours or Less Extensive Guide How Much Money Do I Need to Trade Forex?

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