Why You Need The BIGshift Trader Coaching Right Now
In a nutshell it’s all about winning, and the fact that you best steer a “different course” right now. Here’s the hard facts…
The factual, published, number-crunching research, shows that for the vast majority, trading’s a loser‘s game. Not only day trading and active trading, but market risk-taking in general.
In a minute we’ll review the actual dismal statistics, but the bottom line is that something is very wrong and something new, different, and better is needed to increase the chances of moving to the winner circle.
The conclusion of the research is simple: “traders are losers.” As reported by Forbes, a study by the North American Securities Administrators found that 77% of day traders lost money. And another reported by BusinessWeek showed that 82% of all day traders lose money. That report was based on a recent study by professors at the University of Taipei along with University of California behavioral finance professors Terry Odean and Brad Barber. Odean and Barber also researched 66,400 Wall Street investors a decade ago and concluded, “The more you trade the less you earn.”
Based on all the records of the Taiwan Stock Exchange (TSE) for the 1995-1999 period (all 100 percent of the traders on TSE – a total of 925,000 investors), the new Odean-Barber study results confirm that the current state of market-timing and day-trading are a loser’s game.
The most active traders, about one-percent of all the traders, accounted for about half of the exchanges volume. The group actually made money on their trades, but factoring in transactions costs, they were net losers. The report continues:
– The average winning trader did in fact repeat as a winner, netting $251 a day after transaction costs. But overall, things were so bad that 82% of all the traders lost money, for an average loss of $45 a day.
– That’s right: Out of 925,000 traders in the study, about 750,000 of them were losers. And assuming 250 trading days a year, each trader lost roughly $11,250 a year for a total loss of about $8.4 billion annually.
– On the other hand, the 175,000 repeat winners each made an estimated $62,750 a year after transaction costs, for a total annual gain by the winners of roughly $11 billion. So even the small number of the top-performing traders made only $62,750 a year for all their risk-taking.
Most everyone agrees that something is very wrong here. Even the lucky bull market buy’n’hold investors have been dealt devastating blows.
It’s time to wake up and consider that “tool-centric analysis” is producing an ever increasing number of losers.
