Hi all, as titled, I am curious to know how many people can really make money in financial market.
Any reference link to some research or reports will be much appreciate.
Thank you.
Generally speaking, majority of investors in the market are actually lossing money. If we really need to calculate the exact number, we need to access the internal data from all exchanges and brokers in the world, which is not possible!
However, there are some brokers providing this kind of statistics so we can get a rough idea what portion of investors are profitable in the market. From Interactive Brokers's website,
66.3% of retail investor accounts lose money when trading CFDs with IBKR.
As Interactive brokers is one of the largest brokerage firms in the world, we may take it as a reference to conclude that only 1/3 of retail investors really make money.
Why most traders never succeed is mostly due to the markets: all can't win! To improve your chances, you need to be hard working to do many investment research and backtesting. Personally, I believe quantitative investment like what we are doing here is the best way to get consistent profits in long term.
Original Posted by - b'I can beat Buffett':Generally speaking, majority of investors in the market are actually lossing money. If we really need to calculate the exact number, we need to access the internal data from all exchanges and brokers in the world, which is not possible!
However, there are some brokers providing this kind of statistics so we can get a rough idea what portion of investors are profitable in the market. From Interactive Brokers's website,
66.3% of retail investor accounts lose money when trading CFDs with IBKR.
As Interactive brokers is one of the largest brokerage firms in the world, we may take it as a reference to conclude that only 1/3 of retail investors really make money.
Why most traders never succeed is mostly due to the markets: all can't win! To improve your chances, you need to be hard working to do many investment research and backtesting. Personally, I believe quantitative investment like what we are doing here is the best way to get consistent profits in long term.
Thanks for sharing the link.
If my understanding is correct, the figure from IB is for CFD trading only?
How about stock market?
Do you also have similar statistics from other brokers?
I am thinking to compare this "win rate" for different brokers and decide which broker account I should use for my trading.
Original Posted by - b'Kelvin Yeung': Thanks for sharing the link.If my understanding is correct, the figure from IB is for CFD trading only?How about stock market?Do you also have similar statistics from other brokers?I am thinking to compare this "win rate" for different brokers and decide which broker account I should use for my trading.
You are right. That IB link only count for CFD product only.
As users on Interactive Brokers are mostly professional investors, they are more serious in trading. The actual profitable ratio for general retails could be much lower.
