Why is the day trading success rate so low?
In: Economics
Stocks are generally looked at long term. Day traders don’t do this.
On a day-to-day basis, during the day, each stock is generally highly volatile. Its near impossible to predict the ups and downs of an individual stock during a single day. We can look long term, and generally the market goes up 8%-10% per year on average… but each day can be anything, and we don’t know what it is, so day trading simply has higher risk.
Now, there is a version of day trading that is successful, its called high frequency trading, which is a specialized method of investing thats better for its own question.
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