PRODUCTS
TRADING GUIDES
Trading 101
Types of Stocks Trading Platforms Explained What is Market Cap? The Dangers Of Holding A Small-Cap Runner Growth Stock Indicators What is an NFT?
Trading Strategies
Penny Stocks Day Trading Reversal Trading Gap and Go Bull Flag Swing Trading
Beginners' Guides
Day Trading Guide Options Trading Guide Small Account Option Trading Stock Order Types Stock Broker Essential Guide Swing Trading Guide Guide to Technical Analysis Day Trading Terminology Margin vs. Cash Account Small-Cap vs. Large-Cap Day Trading Penny Stocks
How To's
How to Day Trade < $25k How to Trade for a Living Pattern Day Trading Rule Technical Analysis Using Multiple Timeframes Day Trading Using Hot Keys How to Use Stock Scanners How to Short Sell Stocks Find Penny Stocks Pre-Spike How to Trade in Premarket How to Trade After Hours How to Trade Penny Stocks How To Use Fundamentals
STOCKS
Trending
Penny Stocks to Watch Hot Stocks to Buy Now Stocks with Breaking News Low Float, Big Gainers Best Value Stocks to Buy Penny Stocks with Dividends Invest in My Top 10 Stocks Day Trading Stocks to Buy
By Sector
Consumer Discretionary Technology Stocks Energy Stocks Healthcare Stocks Financial Stocks Cryptocurrency Stocks
By Platform
Penny Stocks on Robinhood Trending Stocks on Reddit Nasdaq-Listed Penny Stocks TD Ameritrade Watchlist Stocks to Follow on Schwab Webull's Top Penny Stocks Top Penny Stocks on Chase Stocks on Wealthsimple Top NFTs on Crypto.com
Big Percent Gainers
Penny Stocks Under 10 Cents Penny Stocks Under 25 Cents Penny Stocks Under 50 Cents Penny Stocks Under $1 Penny Stocks Under $5 Stocks Under $10 Stocks Under $20 Stocks Under $50 Stocks Under $100 Stocks Under $200
RESOURCES
Stock Market Basics
What is the Stock Market? Types of Stocks Explained Stock Market Sectors Stock Market Indexes S&P 500 Dow Jones NASDAQ Composite
Best Brokers and Apps
Best Brokers and Trading Platforms for Beginners Best Brokers for IRA Accounts Best Roth IRA Accounts Options Trading Platforms Top Stock Trading Apps Best Broker for Day Trading
Terminology
Understanding Trading Terms Circuit Breaker Halts What is Day Trading? Float Margin Account MOMO Pattern Day Trader Pump-and-Dump Relative Volume Short Sale Restriction Short Squeeze VWAP
Additional Resources
Blog
ABOUT
Who Is Timothy Sykes?
About Tim Track Record Reviews The Karmagawa Foundation Contact Us
Social Links
Twitter YouTube Facebook
Millionaire Students
Tim Grittani - My Most Successful Student Ever Mark Croock - Options Trader Jack Kellogg - Former Valet Matt Monaco Kyle Williams Mariana Hincapie Mike "Huddie" Hudson Jack Schwarze Dan Irish

Category: Mentor Updates

Today I want to learn about

The Perfect First Green Day Setup
Learn the 7-Step Pennystocking Framework
TD Ameritrade vs. Robinhood: Complete Review & Comparison
Millionaire Mentor Update: When to Optimize Your Process
Millionaire Mentor Update: Meme Stock Madness Part Deux
Millionaire Mentor Update: Learn Before You Earn
Millionaire Mentor Update: 5 Key Lessons From a Sub-Penny Crash
Millionaire Mentor Update: Why You MUST Learn to Modulate
Millionaire Mentor Update: Student Q&A Is Back!
Millionaire Mentor Update: Fighting Penny Stock Misinformation

About Timothy Sykes

Timothy Sykes

I became a self-made millionaire by the age of 21, trading thousands of Penny Stocks - yep you read that right, penny stocks. You may have heard ... Read more about Timothy Sykes...

Tim's Important Resources

Penny Stocking 101: How to Get Started with Penny Stocks
Which Penny Stocks to Buy
How to Invest in Penny Stocks

Home
About
Affiliates
Chatroom
Contact TIM

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk.See Terms of Service here.

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money.

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (205) 851-0506 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: https://ssrn.com/abstract=219228

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: https://ssrn.com/abstract=2535636

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: https://ssrn.com/abstract=3423101

Terms of Service and User Agreement
Privacy Policy (Statement)
Earnings Disclosure
Member Agreement
Code of Conduct
Sitemap

© 2023 Millionaire Media, LLC. All Rights Reserved.