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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: TraderAlan who wrote (12265)	3/10/2001 2:07:27 PM
From: LPS5	Respond to of 18137

I suspect that figure holds up pretty well. I do, also. As I posted in a previous message, for awhile the media were using a statistic from one daytrading office that made headlines as a proxy for the whole industry, and then the regulators were utilizing numbers that were gathered from the 1999 sweeps. I'm not sure about the statistical soundness of their data gathering in terms of how they qualified their populations, where their thresholds were, etc. But what I've heard, seen, been told - and my gut reaction - lead me to believe that they're well within a +/- 5% neighborhood of the actual failure rate percentages whether they used academia approved, sound data gathering and analysis methods...or simply fell ass-backwards into the numbers. LPS5

To: TraderAlan who wrote (12265)	3/10/2001 2:40:57 PM
From: exdaytrader76	Respond to of 18137

It's at least 80%, probably worse. It is still hard to say, because my sample is so non-statistical. We switched to a cents/share system, and that has made a lot of difference from a $20 flat fee. The new traders can trade 100 shares without getting creamed by commissions. The failure rate is high, but "failure" might include people who tried to day trade for a few weeks, lost a couple grand, and decided that it wasn't for them.