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Working in a sports gambling field, I know the data shows that less than 1% of total players actually make a consistent profit. I wonder how similar it is for n

Working in a sports gambling field, I know the data shows that less than 1% of total players actually make a consistent profit. I wonder how similar it is for nonpassive traders(not investors) on the market, regardless of the platform. People trading futures or actively trading might not be making much money at all. Investing has been very profitable for a layman, but I do definitely believe that trading has been over glorified as a money investment method.

zie 5y ago
The professional "active investors" generally lose money after fees are taken into account: "When performance is measured using before-fee model alphas and compared across the cross-sectional distribution, any active fund performance advantage is substantially less than one would conclude from benchmarking to average index fund performance. Moreover, any advantage of the top active managers over the top index funds is much less than the advantage of the worst index funds over the worst active funds. When performance accounts for residual risk, active funds no longer outperform index funds. " -https://www.cambridge.org/core/services/aop-cambridge-core/content/view/F025DBD6823F2948F6119050E95DA457/S0022109017000904a.pdf/passive_versus_active_fund_performance_do_index_funds_have_skill.pdf https://www.cambridge.org/core/services/aop-cambridge-core/c... JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS Vol. 53, No. 1, Feb. 2018, pp. 33–64 COPYRIGHT 2018, MICHAEL G. FOSTER SCHOOL OF BUSINESS, UNIVERSITY OF WASHINGTON, SEATTLE, WA 98195doi:10.1017/S0022109017000904 Passive versus Active Fund Performance: Do Index Funds Have Skill? Alan D.Crane and Kevin Crotty I'm sure there are better sources, but I'm lazy today. Day traders get even worse: https://mathinvestor.org/2020/07/day-trading-in-the-age-of-coronavirus/ https://mathinvestor.org/2020/07/day-trading-in-the-age-of-c...

zie 5y ago

The professional "active investors" generally lose money after fees are taken into account: "When performance is measured using before-fee model alphas and compared across the cross-sectional distribution, any active fund performance advantage is substantially less than one would conclude from benchmarking to average index fund performance. Moreover, any advantage of the top active managers over the top index funds is much less than the advantage of the worst index funds over the worst active funds. When performance accounts for residual risk, active funds no longer outperform index funds. " -https://www.cambridge.org/core/services/aop-cambridge-core/content/view/F025DBD6823F2948F6119050E95DA457/S0022109017000904a.pdf/passive_versus_active_fund_performance_do_index_funds_have_skill.pdf https://www.cambridge.org/core/services/aop-cambridge-core/c... JOURNAL OF FINANCIAL AND QUANTITATIVE ANALYSIS Vol. 53, No. 1, Feb. 2018, pp. 33–64 COPYRIGHT 2018, MICHAEL G. FOSTER SCHOOL OF BUSINESS, UNIVERSITY OF WASHINGTON, SEATTLE, WA 98195doi:10.1017/S0022109017000904 Passive versus Active Fund Performance: Do Index Funds Have Skill? Alan D.Crane and Kevin Crotty I'm sure there are better sources, but I'm lazy today. Day traders get even worse: https://mathinvestor.org/2020/07/day-trading-in-the-age-of-coronavirus/ https://mathinvestor.org/2020/07/day-trading-in-the-age-of-c...