Odds of Trader Profitability

Odds of Trader Profitability

In 2020-21 during the Covid Pandemic trading popularity surged! An anxious 30 Million new traders opened trading accounts. In 2021 alone trader participation increased 25% in 2021, dwarfing the 15% increase in 2019.

So, what happened to those 30 Million new traders?

Within six months 13 percent of new traders were consistently profitable. Hmm. And 87% quit and many of those within the first three months. For lack of a method, no doubt…

Consensus among brokers says 9 out of 10 day traders lost 90% of their funds within 90 days. Wow! Not very encouraging; however, Hang in there — we do have good news here!

Suffice to say the 13 percent of traders who survived and produced consistent income or profits had some sort of a viable method. However, broker data shows in fact that only 70% of traders who entered the profession in 2020 actually had a strategy or method. And the majority of those relied on technical analysis.

This is good news — Why? Because a bit of deductive reasoning says: 13/70 gives us a 19% were successful, and continue to trading today.

So, we have a 1 in 5 chance that a new Trader using a method will likely be successful in the equity or crypto trading profession.

Again, that is IF the new trader has a viable method.

So, it appears that with a viable method, one can succeed in this profession.

It also begs the question, "What were the other 80% of traders thinking ??" - Those with no method.

My first guess is excitement and impatience. My second guess is that good teaching of viable methods for equity trading, especially swing trading is very tough to find even with the savviest Google query skills. I should know.

Here's another bit a trivia: The odds of you starting a small business and being profitable. Drum roll, please............. It's about 1 in 5. Interesting.

These actually aren't bad odds if you're the 1 most willing to follow your rules, learn the swing trade regimen, and work harder than the other 4.

Regardless, knowing a few of the skills taught in Trading Methods, will change a person's whole thought process and approach to investing in anything.

It's certainly worth the temporal sweat.

And when you succeed, you'll agree Trading is a streamlined, slick home business option!