Don't Steal Money from Day Traders Before They Lose It

Re:Don't Steal Money from Day Traders Before They Lose It by lend000 on Thursday September 06, 2018 @11:50PM (#17931749)

Allegedly 90% lose money on trades, but 50% of the capital makes/loses money in a given market window (however most of the winning capital is owned by a smaller number of players than the losing capital, mostly banks, quant funds, and creative/smart/disciplined/lucky indie traders).

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Re:Don't Steal Money from Day Traders Before They Lose It by omgtehlion on Friday September 07, 2018 @01:19AM (#17932046)

It is not 50%, even if you are allowed to post passive orders (quotes) and pocket the spread (instead of loaing it) commissions will eat a lot.

Effectively, brokers and exchanges have almost infinite ROI: with small and fixed investments in infrastructure and marketing they take _percentage_ of your traded volume.

And shady trading rooms will screw you on commissions, spread, high margins on volatile instruments, and in very unlikely event if you manage to cash out more money than deposited, they will hold your account for "review of illicit trades".

But even on real and legal exchanges far less than 50% of capital wins, I assure you.

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Re:Don't Steal Money from Day Traders Before They Lose It by noddy1w on Friday September 07, 2018 @12:44AM (#17931935)

Not if the exchange has spreads and leverage. Even small spreads can screw your odds completely if you trade at margin, and gamblers bust means if you turn over your money a few times at high leverage you'll probably lose it all.

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