January 27, 2023

Some statistics that we managed to get

  1. 80% of daily traders leave within the first two years.
  2. Among all-day traders, about 40% day trading lasts only one month. Within three years, only 13% continue day trading. Five years later, only 7% remained.
  3. Traders sell winners at a rate 50% higher than losers. 60% of sales are winners and 40% of sales are losers. 2
  4. The average individual investor is inferior to the market index by 1.5% per year. Active traders are 6.5% behind annually. 3
  5. Good day traderscontinue to make good profits in the future. Although only about 1% of traders all day can predictably make a profit minus commissions.
  6. Traders with a negative track record of up to 10years continue to trade. This suggests that day traders even continue to trade when they receive a negative signal regarding their abilities.
  7. Profitable day traders make up a smallthe share of all traders is 1.6% on average per year. However, these daily traders are very active - they account for 12% of all daily trading activity.
  8. Among all traders, profitable traders increase their trading more than unprofitable daily traders.
  9. Poor people tend to spend most of their income on lottery purchases, and their demand for the lottery increases as their income decreases.
  10. Investors with a wide difference between their current economic conditions and their levels of aspiration hold riskier stocks in their portfolios.
  11. Men trade more than women. And unmarried men trade more than married men.
  12. Poor young people who live in urban areas and belong to certain minority groups invest more in stocks with elements of the lottery.
  13. In each income group, players are inferior to non-players.
  14. Investors, as a rule, sell winning investments, holding their unprofitable investments.
  15. Trade in Taiwan fell by about 25% when a lottery was introduced in April 2002.
  16. In periods with an unusually large lottery jackpot, trading by individual investors is reduced.
  17. Investors are more likely to buy back the shares they previously sold for profit than shares previously sold at a loss.
  18. An increase in search frequency [in a particular instrument] predicts higher returns in the next two weeks.
  19. Individual investors trade more actively when their latest trades have been successful.
  20. Traders do not learn to trade. "Trading for training" is no more rational or profitable than playing roulette for an individual investor.
  21. The average daily trader loses money with a significant margin after adjusting for transaction costs.
  22. [In Taiwan], individual investor losses account for about 2% of GDP.
  23. Investors are overweight in the industry in which they are employed.
  24. High IQ traders tend to hold more mutual funds and more stocks. Consequently, diversification effects are more beneficial.