Why Most Day Traders Struggle
Studies of real brokerage records find that only a small fraction of day traders earn consistent profits. Here is what the research shows, why the odds are hard, and what to do if you still want to try.
What the research found
| Study | Market and period | Key finding |
|---|---|---|
| Barber, Lee, Liu and Odean | Taiwan, 1992–2006 | Fewer than 1% of day traders were able to predictably profit after fees |
| Chague, De-Losso and Giovannetti (2019) | Brazil index futures, 2013–2015 | 97% of those who day traded for more than 300 days lost money; only about 1.1% earned more than the minimum wage |
Academic studies of complete trading records. Past results do not predict any individual’s outcome.
Unlock all of Investing School
The rest of this lesson, its chart examples and quiz are part of Investing School. Start free with Stock Market Fundamentals and the first lesson in every category.