Re:Almost 80% of Private Day Traders Lose Money
by notahacker on Monday August 22, 2016 @12:42PM
(#12337540)
Blackjack, a casino game with unusually good odds, has a house edge of 0.43%
You can certainly get brokers that'll accept a lower commission than that per trade, and if you're not hugely overleveraged the variance of your expected returns is going to be lower[1]. As with poker, the difficulty isn't so much the house edge as the fact there will be people or bots who are much better at it than you and/or have much bigger bankrolls to force you out of the market even if your suspicion they're holding a weak hand is justified
[1]Your expected returns are also on average positive in the long term if you buy and hold rather than trading
You can certainly get brokers that'll accept a lower commission than that per trade, and if you're not hugely overleveraged the variance of your expected returns is going to be lower[1]. As with poker, the difficulty isn't so much the house edge as the fact there will be people or bots who are much better at it than you and/or have much bigger bankrolls to force you out of the market even if your suspicion they're holding a weak hand is justified
[1]Your expected returns are also on average positive in the long term if you buy and hold rather than trading