We have heard this very often that 95% of people in stock market make loss specifically traders. but nobody has any data to share or maybe they have (brokerage firms) but they don’t want to share it and keeping this myth.
Can anyone share this with data, may be Zerodha can share it because they are the no. 1.
@nithin, you share a lot about Zerodha, would you like to share some details with the community.
I know @nithin said this: “Less than 1% of active traders earn more money than a bank fixed deposit over a 3-year period”
I suppose that also translated to, A ‘passive trader’ aka LT investor has a much better chance of beating FD returns. Which then means MF is better for most.
Fyers has been confirming that 15% of their clients are regularly on profitable side…
It has to be seen if 15% remain profitable after 3 years or not.
There have also been many research papers written about. Some of these research papers have analyzed entire trade data at the exchange level (from places like Brazil, Taiwan, etc). I had shared some of them in a different thread -
Other than those, these research papers might also be interesting -
Attention Induced Trading and Returns: Evidence from Robinhood Users
Resolving a Paradox: Retail Trades Positively Predict Returns but are Not Profitable
Also, this doesn’t mean there aren’t any exceptions. The most recent example of this can be found in the latest Jack D. Schwager book called Unknown Market Wizards that features interviews from many individual traders who have earned outsized returns -
Not really, it also depends what kind of an investor you really are.
Short-term: Panics over dips and sells at a loss.
Long-term: Uses dips as a buying opportunity and holds long-term.
It also depends on how much you trust the stock that you invested in, I’m big in crypto so I’m also supporting public companies that are blockchain-focused, similar to $BTCS. They were up by $14m in digital assets in Q1 and this is the way that $TSLA is doing too. (They sold some of their BTC to test liquidity)