Day Trading for a Living? (papers.ssrn.com)

Article summary

A study observed 19,646 individuals who began day trading in the Brazilian equity futures market between 2013 and 2015, finding that 97% lost money and only 0.4% earned more than a bank teller. The study concludes that it is virtually impossible for an individual to day trade for a living. The results suggest that day trading is highly unlikely to be a sustainably profitable undertaking. The study's findings are based on a specific market and time period, which may limit their generalizability.

Main themes

• day trading
• market efficiency
• risk and reward
• trading strategies
• financial markets

What commenters say

• Day trading is not a reliable way to make a living, as evidenced by the study's findings that most traders lose money.
• The study's results are not surprising, given the efficient market hypothesis and the difficulty of beating the market through day trading.
• The study's sample size and market focus may not be representative of all day traders, and therefore the results should be interpreted with caution.
• Some commenters argue that day trading can be profitable for those with the right skills and knowledge, but this is rare and requires a significant amount of luck.
• Others suggest that the study's findings are consistent with the idea that day trading is a game of luck, rather than skill.
• The concept of learning by day trading is also called into question, with some arguing that there is no evidence that traders can improve their performance over time.
• The discussion highlights the importance of considering risk, expected value, and opportunity cost when evaluating the potential for day trading to be a viable career path.
• The study's results are seen as a warning to potential day traders, emphasizing the need for caution and realistic expectations when entering the market.