1. 80% of day traders give up within the first 2 years.

2. Out of all day traders, nearly 40% of them will be trading in just one month. Within 3 years, only 13% had continued to day trading. After 5 years, only about 7% remained.

3. Trader often closes winning trades at a rate of 50% higher than losing trades. 60% of closed command are winning trades, while the other 40% are losers.

4. Mid-range individual investors have poor performance in a market index of 1.5% per year. Active traders operate under a 6.5% annual performance.

5. Day traders with good performance in the past continue to make high profits in the future. Although only about 1% of day traders are likely to make the expected net profit.

6. Traders with a negative track record for up to 10 years will continue to trade. This shows that day traders even continue to trade when they receive negative signals about their abilities.

7. Profitable day traders profit only a small percentage of the total number of traders - 1.6% of the annual average. However, these day traders are very active, accounting for 12% of all day trading activity.

8. Among all traders, profitable traders often increase their trades by much of the unprofitable day traders.

9. Individuals with low incomes tend to spend the majority of their income on lottery purchases and the demand for their lottery increases as their income decreases.

10. Investors have a big difference between their existing economic conditions and the degree of their aspirations to hold more risky stocks in their portfolios.

11. Men trade more than women. And unmarried men trade more than married men.

12. Young men, low-income men, people living in urban areas, and in specific minority groups will invest more in stocks with lottery-like characteristics.

13. Within each income group, gamblers typically perform worse than non-gamblers.

14. Investors trend to sell winning investments while holding their losing investments.

15. Trading in Taiwan is down about 25% when lottery was introduced in April 2002.

16. During periods of unusually large lottery jackpots, trading of individual investors often plummeted.

17. Investors are more likely to buy back a stock they sold before for a profit than a stock sold previously because of a loss.

18. An increase in search frequency [for a particular tool] will predict higher returns over the next two weeks.

19. Individual investors trade more actively when their most recent transactions are successful.

20. Traders do not learn to trade. For individual investors, learning to trade is more irrational and profitable than learning how to play roulette.

21. Mid-range traders will lose a substantial amount of money after adjusting for the transaction costs.

22. [In Taiwan] individual investors' losses are about 2% of GDP.

23. Investors often appreciate value stocks in which they are working.

24. Traders with a high IQ trend to hold more mutual funds and a larger number of stocks. Therefore, they benefit more from diversification effects.


The reason why traders lose money is not surprising anymore!