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Why does it have to be at the billions level for them to be considered successful?
In general, how many successful people are successful at the billionaire level? Millions, maybe, but billions? Get real.
You are just setting an unrealistically high level to prove your point. Billionaires are total outliers and should not even factor in a conversation about rates of success for the majority of people.
Because, according to Forbes, there are 1645 billionaires. You would think at least one would be a day-trader. The World's Billionaires - Forbes
Day trading is, by most measures, harder to do than position trading or longer-term trading. That is because stock prices can fluctuate widely intra-day and it's therefore harder to predict their direction over such short time frames. Plus, it's easier for powerful traders and institutions to manipulate stock prices during the course of a day.
A position trader (who holds a position for weeks at a time) can be right 80% of the time. But even the best day traders with many years of experience are probably right no more than 55% of the time. They will get stopped out rather frequently. So, it is something of a gamble.
Because, according to Forbes, there are 1645 billionaires. You would think at least one would be a day-trader.
I never thought a day trader would be on the list...................lol.
Im not surprised a few lost billions...................lol. Ask those rogue trades at big investment banks how ez trading is.
If you made 1% a day from day trading with absolutely no losses, it'll still take you over 4 years to turn $10,000 into 1 billion.
It would take WELL over 4 years. I just ran the numbers and I came up with 14,400,000.00 in four years.
1) You can only trade roughly 220 days a year.
2) I cheated and just figured paying your short term capital gains tax at the end of the year. In reality you would have to pay quarterly.
I also suspect most people would need to use some of the income for living expenses.
It would actually take even longer than that. You can't just compound returns like you would with long-term investments because, when day trading, you can only trade so much capital per trade (and therefore per day) before there is a point of diminishing (or even NEGATIVE) returns. E.g. if you tried to buy $1 million of XYZ, depending on the liquidity of the stock, you'd likely get multiple partial fills at higher and higher prices, raising your average price to a point where it would be much more difficult to make a profit. (You'll have similar problems when you sell too.) So to get relatively quick fills at the current ask price (or close to it), you may need to limit your buys on XYZ to, say, $100,000. The limit will be more or less for different stocks, but there will always be a limit. And that means compounding will be greatly limited as well.
It would actually take even longer than that. You can't just compound returns like you would with long-term investments because, when day trading, you can only trade so much capital per trade (and therefore per day) before there is a point of diminishing (or even NEGATIVE) returns. E.g. if you tried to buy $1 million of XYZ, depending on the liquidity of the stock, you'd likely get multiple partial fills at higher and higher prices, raising your average price to a point where it would be much more difficult to make a profit. (You'll have similar problems when you sell too.) So to get relatively quick fills at the current ask price (or close to it), you may need to limit your buys on XYZ to, say, $100,000. The limit will be more or less for different stocks, but there will always be a limit. And that means compounding will be greatly limited as well.
It would actually be impossible to make a billion dollars from trading stocks when you think about it. You have a great point that there is a limit to the amount you could trade in any one stock. How well could anyone trade when they have to manage 100 different trades at a time?
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