📊 Key Day Trading Insights

1. 📉 Trader Survival & Profitability

  • Around 40% of day traders quit within the first month.

  • Only 13% remain active after three years.

  • Just 1% of traders consistently profit over five years.

“Persistence seems to be a rare commodity… failure is the norm, mainly due to the nature of the game: day trading is mostly a zero-sum game.”

2. 💸 Earnings vs. Losses

  • According to FINRA, 72% of day traders ended the year in financial loss.

  • Median profit: approximately $13,000, though likely inflated due to survivorship bias.

  • Common industry phrase: “90% of traders lose 90% of their capital in 90 days.”

3. 🏦 Proprietary Trading Firms

  • In the case of Tuco Trading:

    • Only 16% of traders were profitable.

    • Merely 3% earned more than $50,000 annually.

    • 28% experienced losses over $10,000.

4. 🌍 Global & Academic Research

  • Brazilian study of 1,600 day traders:

    • Only 3% were profitable.

    • Merely 1.1% earned more than minimum wage.

  • Taiwanese research (1992–2006):

    • Fewer than 1% showed consistent long-term profitability.

5. 📈 Behavioral Patterns & Demographics

  • 90.5% of day traders are men; women (9.5%) often perform better due to cautious strategies.

  • Trader population in the U.S. grew from 15% in 2019 to 25% by 2021.

  • Millennials and the 18–34 age group dominate online trading platforms.

  • Traders often increase risk after a win streak, which can lead to sharper losses.

6. ⚙️ Strategy & Risk Management

  • 88% of traders use stop-loss orders, though their effectiveness is debated.

  • 70% follow a defined strategy, most relying on technical analysis.

  • Traders who use margin average a −4.53% return, highlighting leverage dangers.

7. 🪙 Crypto Enthusiasm

  • A significant number of young traders are drawn to cryptocurrency markets, although success rates remain unclear.

  • Original article( https://www.quantifiedstrategies.com/day-trading-statistics/ )