Fact or Fiction - Do day traders lose money?

Do most day traders lose money? Can day traders make money trading futures and futures options?

“Day trading” futures has often been frowned upon by “traditional” investors. Literature on day trading indicates that up to 90% of day traders render unsuccessful long-term results.

It is important to study the validity of these claims by asking two critical questions: what is the opening account size for the average day trader and what is the drawn down / profit ratio for these accounts?

A fundamental tenet of technical trading is that technical analysts do not concern themselves with time frames. Analysts admit that some markets are more responsive or profitable within certain time frames, however, the basic components of entry signals, exit signals and risk management prevail across all trading time frames and all markets.

If these components are solid and adhered to with strict discipline, then the “myth” of - “90% of day traders are unsuccessful” can be broken down. Day traders can win … they just need to have quicker reflexes

Day traders out there - any comments on this?

Most trading systems can be automated and back-tested using customized software programs.

Contact us if you would like your trading system to be back-tested using a software program specifically modeled to test your system. I will provide a customized software solution you can use to test your trading system. Always remember that past trading performance does not necessarily reflect future performance.

For more information about using our programming services to develop a program to test your trading system, feel free to contact us. Note - you will be able to speak to a developer directly as you work out the details of defining solutions for your futures trading systems.

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