Economists analyzed data from brokers and the results of traders. The findings explained why most traders lose money. Here are some interesting statistics:

1.  80% of all day traders leave the market within the first two years.

2.  Among all day traders, almost 40% trade intraday only for one month. Over the course of three years, only 13% continue to day trade. In five years, only 7% will remain.

3.  The average individual investor underperforms the market index by 1.5% per year. Active traders underperform by 6.5% per year. Conclusion - invest in an index.

4.  Day traders who have performed well in the past continue to earn high returns in the future. Although only about 1% of all day traders can predictably make a profit minus commissions.

5.   Profitable day traders make up a small share of all traders - 1.6% on average per year. However, these day traders are very active, accounting for 12% of all day trading activity.

6.  Among all traders, profitable traders increase their trading more than unprofitable day traders.

7.  Investors with large differences between their existing economic conditions and their level of aspiration hold riskier stocks in their portfolios.

8.  Men trade more than women. And unmarried men trade more than married men.

9.  Investors tend to sell profitable investments while holding on to losing ones.

10.  Investors are more likely to repurchase assets that they previously sold at a profit than those that they previously sold at a loss. 9

11.  Increased search frequency predicts higher returns in the next two weeks.

12.  Individual investors trade more actively if their last trades were successful.

13.  The average day trader loses money by a significant margin after adjusting for transaction costs.

14.  Investors overvalue the assets of the industry in which they operate.

15.  High IQ traders tend to own more mutual funds and more assets. Therefore, benefit more from the effects of diversification.

Don't forget that trading is a profession that requires skills that take years to develop. Therefore, be careful about your trading decisions and your outlook on trading. Don't expect to become a millionaire by the end of the year, but be aware of the possibilities of online trading.

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