1% defeating index

@nithin

I read your post on 1% of active traders beating bank FD.

How many of that 1% defeated index returns (say a an index fund or NIFTYBEES)?

Can you put which post you are referring here?

is this really true? @siva ??

Of course if it is by Nithin. He said in the long run succeeding as a trader has the same odds of running a successful business, which is very less.

ok, then only upto 40,000 zerodha traders are beating bank FDs…interesting :slightly_smiling_face:

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@siva I was referring to this link. What does it take to win at trading? – Z-Connect by Zerodha Z-Connect by Zerodha. When I mentioned about 1% of traders beating FDs.

I wanted to know how many of that 1% defeated index returns?

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Countless people have been lured to the markets by mis-sold dreams of getting rich quickly and achieving financial freedom. The ease of getting started adds to this allure. Here is the thing though: less than 1% of active traders earn more money than a bank fixed deposit over a 3-year period. While this percentage seems abysmally small, it is, in fact, similar to the success ratio of ordinary businesses; just that the ease of entry entices a large number of people to give it a shot.

In that post, I was referring to active traders, those who do intraday trading, F&O, use leverage, etc. In this crowd, only a small% manage to generate positive returns. If you were to assume that the last 3 years index returned 12 to 15%, active traders who generated more than that across 3 years will be a small portion of the 1%.

These are all approximate numbers, the idea was to drive home a point that it isn’t easy to make money in the markets.

Of those active traders who managed to beat the index.

What are their returns like? Is it somewhere between 30-40%?

We haven’t really look at this type of data. We just have broad data on profitability and mainly for risk management purpose.

What is the reputation of one who beats market consistently in the industry? What can he achieve.
Also if we eliminate everyone having less then 50 lakh in his trading account ,will there be difference in the ratio of profitable traders .

This is so generic, not sure how one can answer that.

As mentioned above by Nithin we don’t track in depth.

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I understand, I didn’t put it properly.

It was not specific, what I meant was if someone brings substantial amount we may call him accredited or informed investor unlike someone bringing lesser amount and losing. Odds of the former are maybe better then later to succeed.

How many traders on average are profitable (whatever is the net positive returns)…The data from Fyers seem to suggest that 15% of their active traders are profitable on regular basis…

Profitability depends on time period selected. Like I had mentioned above, over a 3 year period it is quite less. If you look at it over a 30 day period, it will of course be much higher.

Pls don’t fall for these claims made by brokers.

Their profits come from ur trades. They want u to trade more and more. So they publish all such crap claims. Only those win who wait and hold for several years with minimum trades. And that is against the profit of all broker likee Zerodha

Stop reading their crap . igonre them totaly.

Clearly, you didn’t read what I had written. The advice was to trade less and not more.

Don’t just blether anything without knowing the facts.