Studies have already shown that 95% of people who take their time to speculate on the stock exchange, lose it with quality, as they end up losing money and in a way it does not bring them any benefit. Since the press released its study on the well-known day traders, or rather, people who speculate on assets on the stock exchange, they have brought fame to those who, from the beginning, said that this would not work.
At the request of the Securities and Exchange Commission (CVM), where even brokers in this type of business are not registered, researchers took advantage of its data to conduct research related to this type of subject, and the results are surprising.
Then, the researchers followed the performance of all investors who started to operate as traders under some micro contract. These are only papers that are derived from the Ibovespa and the US currency, which are the favorites of the well-known “day trader”, an activity profile that derives from the trader, but that makes investments in a short period of time. As these small contracts do not keep up with this demand for a very short investment, as the losses that happen in the shares, which are not greater than the profit invested, this type of investment, we can say that they are considered to be of very high risk.
Most relevant data
So, of all those who tried something, 92.1% stopped in less than a year, and in this data, all trader investors who followed, made daily trades on the stock exchange for an average of 300 trading sessions, and of these, 97% lost a large amount in money, of the 2.6% that did not do so badly, earn much less than they invested.
Furthermore, they have not learned over time, on the contrary, the more they insist on this type of business, the more it gets lost. And given all this, however much the logic that being a trader seems true, and that your activities depending on time and experience, research has proven that it all depends on the luck of each individual. This research had such a social impact that, since this study was published in a better and broader way, the number of trade and day traders has stalled in Brazil (the country where the research was carried out).
After increasing relatively in an average of three years, 8 thousand people left this idea to invest in something better, and not to start speculating movements in the stock exchange.
Main study conclusion
We saw then, that the people who “work” with this type of negotiation, did not improve their life or even earn an extra money over time. Every business that is dedicated to time and money comes to bring countless benefits over time, we conclude that the trader does not, as is pointed out in a very clear way in the data studied, you can see that he tries several times and goes backwards, it seems that the chance of winning something evolutionary only tends to drop with time, being very similar to the casino, which is a game of luck, or cheating in many times. If this type of investment depended on skill, you would at least have to improve over time, and not be on the same page all the time, and often regress, we see that this function of training and creating experience does not happen in the life of traders.
Among investors who only made a day of day trade, just over half made gains, if we disregard what you spend when investing in a broker.
It is very similar to the casino, in which two colors are present and your chance of winning immediately is less than half. As the person increases the number of moves, those chances of getting it right decrease. The survey that accompanies this research showed basically the same thing, all investors who continue to bet even without success in the life of a trader, between two and fifty days the total number of chances tends to drop to 14%, and obviously this is nothing favorable for all who remain with the idea of betting or “investing” in a trader or more specifically in a day trader.