Question of the Day: A recent research study found that _________ of stock day traders made money over a 12 month period.
- Why is day trading so popular despite the difficulty of making money consistently?
- Why do you think it's so difficult to make money day trading?
- Do you know anyone who has actively traded stocks? Were they successful?
Behind the numbers (CNBC):
A study published in June of almost 1,600 Brazilian day traders that tracked their activity for one year concluded that only 3% made money. The authors avoided claims that day traders can make money over short periods of time (a day or a week), and concentrated on day trading activity over longer periods.
Their conclusion: “We show that it is virtually impossible for individuals to day trade for a living, contrary to what course providers claim.
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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