Brazil study: 99.4% of daytraders suffer losses and give up
The vast majority of investors who day trade in the financial market fail to do this type of operation, which consists of obtaining profit from the purchase and sale of shares according to the fluctuations in asset prices throughout the day. While the minority achieve an average daily gross profit above R$100.
The data comes from a study conducted by FGV, with individuals who started day trading in stocks in Brazil between 2013 and 2016, totaling 98,378 respondents. All participants' operations between 2013 and 2018 were also analyzed.
The result suggests that, of this total, only 554 carried out the operation in more than 300 trading sessions. All other individuals (99.43%) did not persist in the activity, that is, they had less than 300 trading sessions.
Regarding the performance obtained by those surveyed in the operation, the average “average daily gross profit” among the 554 individuals was negative R$49. In addition, only 127 individuals, or 0.12%, had a profit above R$100. Above R$300 per day, there were only 76 individuals, according to the study.
The research also considered a possible scenario of a “learning period” (first 200 trading sessions) for each of the interviewees who did not give up trading. However, the results were not significantly altered.
The average of the 554 individuals' average daily gross profits went to negative R$91 (i.e., a worsening was observed); 130 individuals, instead of 127, now had an average daily gross profit above R$100.
The vast majority of investors who day trade in the financial market fail to do this type of operation, which consists of obtaining profit from the purchase and sale of shares according to the fluctuations in asset prices throughout the day. While the minority achieve an average daily gross profit above R$100.
The data comes from a study conducted by FGV, with individuals who started day trading in stocks in Brazil between 2013 and 2016, totaling 98,378 respondents. All participants' operations between 2013 and 2018 were also analyzed.
The result suggests that, of this total, only 554 carried out the operation in more than 300 trading sessions. All other individuals (99.43%) did not persist in the activity, that is, they had less than 300 trading sessions.
Regarding the performance obtained by those surveyed in the operation, the average “average daily gross profit” among the 554 individuals was negative R$49. In addition, only 127 individuals, or 0.12%, had a profit above R$100. Above R$300 per day, there were only 76 individuals, according to the study.
The research also considered a possible scenario of a “learning period” (first 200 trading sessions) for each of the interviewees who did not give up trading. However, the results were not significantly altered.
The average of the 554 individuals' average daily gross profits went to negative R$91 (i.e., a worsening was observed); 130 individuals, instead of 127, now had an average daily gross profit above R$100.