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Why 95% of day traders fail in the stock market

The dream of quick riches lures many into day trading—but the data is brutal. Fewer than one in twenty beat the odds over time.

In the right side there are people in the market, it's a sunny sky in the market.
In the right side there are people in the market, it's a sunny sky in the market.

Why 95% of day traders fail in the stock market

Day trading is often sold as a quick route to wealth, promising fast profits through short-term stock market today moves. But research from markets like Taiwan and Brazil paints a far bleaker picture. Studies show that the overwhelming majority of traders lose money—even before accounting for fees and taxes. In Taiwan, over 80% of day traders ended up in the red after costs during a typical six-month stretch. Only 18% turned a profit in the following half-year, despite high trading volumes. When looking at long-term performance, fewer than 5% showed consistent, statistically significant gains—suggesting genuine skill is rare in the stock market. The evidence shows day trading is a high-risk activity with a near-certain downside for most participants. Even in active markets, consistent profitability remains elusive for all but a handful. Without significant skill or discipline, the odds of success are slim—leaving many traders worse off than when they started.

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