Tuesday, June 7, 2011

The Profitability of day traders

According to Jordan and Diltz (2003) , aspiring and novice day traders should give careful consideration to why they think they will be among the 20% who were marginally profitable.  In their study they found that 60%-70% of day traders lose money and most of them due to transaction cost.  Also advices to tyro traders that in the initial stage of trading (learning stage) take small positions and keep losses small.

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