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Additional musings on trading, money, and life

One of my favorite ways to share my ideas is through writing.

My Turning Point as a Day Trader

Day trading in the financial markets can be a rollercoaster ride, filled with small gains, big losses, and moments of redemption. As a day…

The Problem with Penny Stocks

Welcome back, traders! In today’s blog post, we’ll be diving deeper into the profitability sweet spot of trading stocks between $5 and $10. I want to...

The Penny Stock Cycle

Right now we are in a penny stock cycle. This is a cycle that I’m very familiar with because it tends to happen several times a year. And…

Thinking About Buying A New Range Rover?

One of the first expensive things I bought for myself when I became a millionaire was my first Range Rover. Now, mind you at that time, I already owned two pieces of real estate.

Momentum in Penny Stocks

As we come to the end of the week, my weekly report is that overall this was a fairly slow week. Last week, we had a lot of action and the week...

The Grateful Day Trader

As a day trader, I’ve had the opportunity to delve into the fascinating world of self-employment and financial freedom. This past summer I…

Recovering Losses as a Day Trader

Experiencing a trading slump or drawdown can be a challenging and disheartening time for any trader. It is during these moments that...

7 Habits That Boosted My Trading

In the fast-paced world of trading, success often hinges on adopting the right habits and mindset. In this blog post, we will delve into the seven...

I Broke Up With Mercedes. It’s over.

I’m gonna state an unpopular opinion that I can’t stand Mercedes Benz. Now listen, I don’t want to hate Mercedes, but they’ve given me no choice.

2 Rules for Becoming a Disciplined Trader

Becoming a successful trader requires more than just knowledge of the markets and technical analysis. It demands discipline and the ability to stick...

How Much Money Do You Need To Day Trade

In this episode I’m gonna answer that question that so many of you have been asking. How much money do I need in order to start day…

The Definition of Sympathy Momentum

Today I want to talk about Sympathy Momentum. It’s a phenomenon we’ve seen in the market for ages. Sometimes you’ll hear...

The Definition of Sympathy Momentum

Today I want to talk about Sympathy Momentum. It’s a phenomenon we’ve seen in the market for ages. Sometimes you’ll hear the saying…

SOLD my 1996 Porsche 993

I just sold my 1996 Porsche 993. I owned it for about 3 years. When I bought it during the Pandemic in 2020 it had about 14,000 miles on it.

4 Tips For Day Trading a Small Account

Most day traders often start out with a small account. Then over time, they build not only their skills but their bankroll as well…

Top Rated Marijuana Stocks

Today, the marijuana industry is experiencing tremendous growth thanks to changes in rules and regulations around the world. According to…

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Warrior Trading may publish testimonials or descriptions of past performance but these results are NOT typical, are not indicative of future results or performance, and are not intended to be a representation, warranty or guarantee that similar results will be obtained by you.

Ross Cameron’s experience with trading is not typical, nor is the experience of traders featured in testimonials. They are experienced traders. Becoming an experienced trader takes hard work, dedication and a significant amount of time. Your results may differ materially from those expressed or utilized by Warrior Trading due to a number of factors. We do not track the typical results of our past or current customers. As a provider of educational courses, we do not have access to the personal trading accounts or brokerage statements of our customers. As a result, we have no reason to believe our customers perform better or worse than traders as a whole.

Available research data suggests that most day traders are NOT profitable. In a research paper published in 2014 titled “Do Day Traders Rationally Learn About Their Ability?”, professors from the University of California studied 3.7 billion trades from the Taiwan Stock Exchange between 1992-2006 and found that only 9.81% of day trading volume was generated by predictably profitable traders and that these predictably profitable traders constitute less than 3% of all day traders on an average day.

In a 2005 article published in the Journal of Applied Finance titled “The Profitability of Active Stock Traders” professors at the University of Oxford and the University College Dublin found that out of 1,146 brokerage accounts day trading the U.S. markets between March 8, 2000 and June 13, 2000, only 50% were profitable with an average net profit of $16,619.

In a 2003 article published in the Financial Analysts Journal titled “The Profitability of Day Traders”, professors at the University of Texas found that out of 334 brokerage accounts day trading the U.S. markets between February 1998 and October 1999, only 35% were profitable and only 14% generated profits in excess of $10,000.

The range of results in these three studies exemplify the challenge of determining a definitive success rate for day traders. At a minimum, these studies indicate at least 50% of aspiring day traders will not be profitable. This reiterates that consistently making money trading stocks is not easy. Day Trading is a high risk activity and can result in the loss of your entire investment. Any trade or investment is at your own risk.

Any and all information discussed is for educational and informational purposes only and should not be considered tax, legal or investment advice. A referral to a stock or commodity is not an indication to buy or sell that stock or commodity. This does not represent our full Disclaimer. Please read our complete disclaimer.

Citations for Disclaimer

Barber, Brad & Lee, Yong-Ill & Liu, Yu-Jane & Odean, Terrance. (2014). Do Day Traders Rationally Learn About Their Ability?. SSRN Electronic Journal. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2535636

Garvey, Ryan and Murphy, Anthony, The Profitability of Active Stock Traders. Journal of Applied Finance , Vol. 15, No. 2, Fall/Winter 2005. Available at SSRN: https://ssrn.com/abstract=908615

Douglas J. Jordan & J. David Diltz (2003) The Profitability of Day Traders, Financial Analysts Journal, 59:6, 85-94, DOI: https://www.tandfonline.com/doi/abs/10.2469/faj.v59.n6.2578

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