It seems like the 99% fail isn’t an accurate representation of the trading community. If you randomly open a demat and place one/two trades, loose and exit the market. I wouldn’t call this person a ‘trader’.
It would be helpful if zerodha did an accurate analysis of their account holders to filter out people who placed at least few trades a month for a period of 1 year or more. This would yield a better result of % of profitable traders.
Only a brave few will reveal if they lost money. So, a voting system may not be accurate data. But brokers who have access to account information should do better job of reporting this data. That might be more helpful.
What difference does it make if other people are making profit or not? They are them and we are us.
If 99% are losing and we are losing too, should we take solace in knowing this?
We should understand our trading, how the market is, what we are doing, how did the trades go, the reasons for them, what we should have done, if we made mistakes or we did our best but still market behaved unexpectedly etc etc.
well, it speaks to the credibility of trading as a career. New entrants might just think, if probability of me winning is less than 1% then i might as well gamble and try to make as much money as soon as possible and exit the market.
This type of mindset might be the real cause of new entrants being non-profitable.
This is where a better analysis of trader data may help.
If you are frequently chauffeuring you friend, then you know how to drive. As far as i know, that is the only qualification that uber asks for. So, you can drive uber if that was you wish.
It is not about what Uber asks. It is about if I can do it nonstop, for hours. If I will feel sleep depraved or if I feel energetic even after driving for hours, and if this is yield me the return I expected.
I don’t think that’s always true. Market makers(HFT?) for example will take a large cut of my profits for the service they provide. But i am still profitable and wont be able to trade if i did not get liquidity in orderbook when i need it.
Similarly whatever little i might make could be out of someone making money in higher timeframe etc. Different people do different things in the market and not everyone is playing the same game.
No I am not an active trader, just began my journey both in equity and options. Although I have some experience with investing, so to some extent I know how to play the game.
Of course options being as what they are, I am getting kicked out of the ground frequently, as I have started this just now
You are right in the specific example you mentioned. I am not speaking in reference to particular trade. Overall, there has to be someone in the opposite end if you go to the root of the trade. Everyone cannot come back making money.
I am not as experienced as you. That’s what i thought.
I thought there cannot be two net positives in market. Well there can be two net negatives in a way, as there are charges to factor into.
Overall consistent winners are government and broker.
If I am looking at a longer time frame, say 1 hour, and if I am right in my direction, in a 5 minute time frame someone comes and makes money in my opposite direction, I can still make money in my direction and the direction which has changed in 5 minutes will change again in 1 hour.
In fact, I did this, took a bet in opposite direction in intraday against my original bet which is positional, and made some profit
In investing it is different, even if someone buys at a high price, a mistake, but someone can come in the future and buy at a higher price, greater fool theory