Think only 5% of traders succeed? Think again!
You might remember our recent myth-busting spree about affiliate programs. Well, it’s time to tackle another big one: “Only 5% of traders succeed.” Sometimes, this figure is even reduced to a grim 1%. It’s the stuff of trading lore—whispered in forums, and designed to scare off anyone with ambition.
But according to Morningstar, this is nothing more than a myth. A landmark study—The Cross-Section of Speculator Skill: Evidence from Day Trading—analyzed nearly half a million traders and revealed this: 20% earn profits net of fees annually.
So, where do the pessimists get their stats? Here’s the twist: the researchers discarded 19 out of 20 observations of profitable traders because they couldn’t “prove” whether those profits came from skill or luck. Imagine crushing it on your trades, only to have someone shrug and say, “Eh, probably just lucky.”
The reality is, profitable traders are showing up, strategizing, and putting in the work. As the data proves, success is far more attainable than the myth suggests. Trading isn’t some exclusive club for the “chosen few.” It’s a skill—and like any skill, it rewards consistency, discipline, and a willingness to learn. That gives a 20% shot at becoming a profitable trader—about the same odds as finally sticking to your New Year’s resolution! 🎯
