The myth of high trading costs shatterred!
You’ve heard us bust the popular myth that “only 5% of traders succeed.” The truth? Research shows that up to 20% of traders are profitable annually—much higher than the scare stories suggest.
But here’s another twist: the study that debunks this myth analyzed day traders in Taiwan during the 1990s, when trading conditions were far less favorable than they are today.
How much worse?
Back then, traders were fighting an uphill battle against massive transaction costs: commissions, taxes, and spreads added up to 104 basis points (1.04%) per trade. That’s like starting each trade with one foot stuck in quicksand. Fast forward to today, and those costs have plummeted—modern traders pay a fraction of that amount.
If 20% succeeded in Taiwan’s high-cost markets, imagine the odds now. Today’s trading is like switching from dial-up internet to 5G—faster, cheaper, and way more efficient.
The bottom line: trading myths can cloud judgment, but the data clears the air. With modern markets drastically cutting costs and boosting efficiency, traders today have a much smoother path than ever before.
