Day Trading Statistics and Facts
Barry Elad
Updated · Dec 31, 2024
TABLE OF CONTENTS
Introduction
Day Trading Statistics: Trading on the day is a classic way of trading and buying tradable assets in a single day of trading. The positions that are opened on the same day of trading are shut that day. The day traders select extremely liquid markets such as the stock market and forex; the day trading could occur on any commodity and financial marketplace.
Day traders also have the potential to have a good amount of money and can trade on margins which is possible due to leverage, which allows day traders to make money from very small movements in the market during the day. Successful day traders research the market they intend to trade and create a strategy for trading before dealing with an impressive amount of funds. This article will help you understand day trading statistics.
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- The average daily foreign exchange trading volume has reached USD 7.3 trillion.
- By 2026, the global online trading market is expected to grow to USD 13.3 billion.
- As of 2023, the United States stock market accounts for 60% of global stocks.
- Nearly 44% of Gen Z do not invest in the stock market due to insufficient funds.
- In 2021, over 130 million people traded stocks using online trading applications.
- Approximately 80% of stock market trading is automated.
- In 2022, Robinhood emerged as the leading trading application, facilitating USD 1.8 billion in trades.
- North America represented more than 30% of global stock trading and investment app revenue in 2022.
- The New York Stock Exchange is the largest stock exchange in the world.
- The percentage of American stock traders increased from 15% in 2019 to 25% in 2021.
- A significant portion of online traders are aged 18 to 34, with a growing number of women participating.
- Active day traders contribute about 12% of daily trading activity.
- Only 5% of digital traders reside in major financial hubs, while 50% are based in Asia.
- High attrition rates indicate that 40% of day traders quit within a month, and only 13% remain after three years.
- Only 13% of day traders maintain consistent profitability over six months, and just 1% achieve success over five years.
- Approximately 72% of day traders finish the year with financial losses, according to FINRA.
- Among proprietary traders, only 16% are profitable, with just 3% earning over USD 50,000.
- A study of Brazilian day traders revealed that only 3% were profitable, with just 1.1% earning above the minimum wage.
- The median financial loss for day traders is -36.30%, and 80% lose money within a year.
- Day traders who use margin for leverage face an average return of -4.53%, highlighting the risks associated with leverage.
- Reports of day traders earning millions are rare, with the median profit around USD 13,000, often reflecting survivorship bias.
- There is a significant gender disparity in day trading, with 90.5% of day traders being men. Women, who represent 9.5% of traders, tend to trade more cautiously and effectively.
- Exceptional earnings among day traders are uncommon, with most reporting modest profits or losses.
- A common adage suggests that 90% of day traders lose 90% of their funds within 90 days, underscoring the importance of risk management.
- After achieving a series of wins, traders often increase their engagement and position sizes, which can lead to potential losses.
- Approximately 88% of day traders use stop-loss orders; however, the effectiveness of this risk management tool is debated.
- About 70% of day traders have a trading strategy, with many relying heavily on technical analysis.
- Cryptocurrency trading attracts a substantial number of traders, particularly millennials, although success rates remain unclear.
- Many traders are drawn to day trading because of low entry barriers, leverage opportunities, and the perceived sense of control; 80% cite control as a primary appeal.
- Persistence in the face of losses is common, as day traders often experience financial losses for six months before deciding to quit.
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Day Trading Success and Failure Statistics
(Source: Quantified Strategies)
- 40% of day traders quit within a month.
- 13% of day traders remain after three years.
- Only a small percentage of day traders succeed and make consistent money.
- The day trading environment is highly challenging, with limited opportunities for long-term success.
The Latest State of Day Trading
- In recent times, the expansion in popularity of Internet trading platforms as well as social media has contributed to the growing popularity of trading on the day.
- According to the Financial Industry Regulatory Authority in 2020, around 72% of day traders had financial losses.
- According to Charles Schwab, American stock traders increased from 15% in 2019 and increased to 25% by 2021.
- As per Broker Notes, about 18 to 34 years old is currently estimated to account for 65% of traders on the web in the UK.
- The number of women who trade has grown from 27% to 41%.
- According to Zippia according to Zippia, around 90.5%of all-day trading in the USA are men, while nearly 9.5%are female.
The Reasons Why Day Traders Lose Funds
- Traders with high IQ have more mutual funds and stocks with large amounts.
- Investors buy stocks that are stout within the industries in which they work.
- In Taiwan, the loss to individuals investing is close to 2% of the GDP.
- The trader with the minimum-day loss of the money through a margin following altering the costs of the transaction.
- According to the survey, 50% of traders make more money trading when they have had a good day.
- A quarter of investors purchase a share they sold before the stock was sold for an amount that was lost in the previous.
(Source: tradeciety.com)
- Nearly 30%of the individual investor’s trading fell during the period. This was accompanied by an enormous lottery prize.
- The investors sell their winning investments while keeping their losses.
- Around 40%of the unemployed, young men living in urban areas, and that are from minorities invest in lottery stocks.
- A whopping 30% of men who are not married trade more than married ones.
- Most poor people invest a larger portion of their earnings on lottery purchases. the demand for lottery tickets is higher with the decline of their income.
- Profitable traders boost their trading more than non-profitable day traders.
- Traders with more than 10 years of negative records are likely to continue trading.
- Day traders who have the best past performance make substantial profits in the future years. However, just 1%of all-day traders are sure of a profit, free of fees.
- The minimum amount of an individual investor adjusts an index of market value by 1.5% every year. The active traders are underachieving by 6.5% per year.
- The traders offer winners at a 50% greater rate than losers. 60% of sales are winning, while approximately 40%are losers.
Proprietary Traders Profit Gaining Statistics
- Out of 206 active traders, only 33 gained profit, representing only 16%.
- The majority of 173 traders, or 84%, were not profitable.
- Just eight traders have managed to gain profits that exceed USD 50,000, accounting for 3%.
- About 57% of traders sustain losses that surpass USD 10,000.
- Approximately 15% managed to secure profits that exceeded commission and associated costs.
- In 2020, a day trader pocketed about USD 100 million in profits from Tesla Stock only.
- In 2021, Robinhood, a famous trading platform, reported that one of its users made over USD 30 million in a single trading day.
- As per FINRA in 2020, the medium profit for the day traders was nearly USD 31,000.
- Day traders are believed to be more likely to experience a 50% loss than a 50% gain.
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Day Trading Demographics
- As per Broker Notes, 18 to 34-year-olds account for 65% of all online traders in the UK. The proportion of traders over 45 has dropped and shifted towards a younger demographic.
- As per Zippa, 90.5% of day traders in the USA are male, and 9.5% are female.
- As per BrokerNotes, worldwide online trading found that of the projected 9.6 million online traders, 33% are Asian.
- In 2021, the US Hispanic day trading increased from 10.5% to 11.49%, respectively. A more significant percentage of Asians and Hispanics have recently joined the day trading space.
Day Trading Profit Statistics
- As per FINRA, in 2020, the medium-day trading profit among individual investors was USD 13,000.
- The traders who used a long-term trend followed a path with an average annual profit of 16.8%, whereas those who used a trading strategy had a yearly profit of 12.5%.
Additional Day Trading Statistics
- A majority of trading day traders who were active failed their first year’s effort because of inadequate risk management.
- Day traders who use leverage Day traders who make use of margin to leverage have an average loss of 4.53%.
1.1% of the day traders are expected to make money after expenses. - Around 90% of the day traders lose money.
- Stocks traded on day trading have a 1% chance of success.
- Day traders who are females have more success than male day traders and earn a 43% average return.
- A mere 3% of a day of instruction can yield consistent earnings.
- The day traders can experience a 50% loss than gains.
- Around 18% of day traders earn minimum wages through day trading.
- 40% of daytime traders quit in less than a month and 87% resigned within three years.
- 96% of individual day traders are losing money.
- The minimum day trader personal has to pay back money after six months.
Conclusion
The day trading statistics narrate a fascinating tale in the labile world of day trading. It is believed that a vast public needs to catch up on financial targets, and a minimal percentage gains profits from the odds. This inconsistency stems from the succeeded traders’ in-depth knowledge, discipline, strategic planning, adaptive mindset, and commitment.
As day trading has a financial risk factor, it is essential to invest carefully. Day trading is not everyone’s cup of tea, and understanding this fact is almost as crucial as understanding the statistics. Well-judged decision-making in day trading starts with acknowledging the data we have unpacked in the present day.
Sources
Barry Elad
Barry Elad is a tech enthusiast passionate about exploring various technology topics. He collects key statistics and facts to make tech easier to understand. Barry focuses on software and its benefits for everyday life. In his free time, he enjoys creating healthy recipes, practicing yoga, meditating, and walking in nature with his child. Barry's mission is to simplify complex tech information for everyone.
