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Most traders underperform to a coin flip day trading bot
A trader eventually comes across the statistic that 90% of traders fail to make money when trading the stock market. This statistic deems that over time 80% lose, 10% break even and 10% make money consistently. Still trading attracts millions of people in the attempt to beat the market and make money.

To quantify how bad the fact of 90% losing money is I compared it to a coin flip trading bot which makes a trading decision based on a virtual coin flip random(0,1) 🤖

I setup a strategy in http://breakingequity.com/
  • Trading $QQQ
  • Random enter and exit on 30min intervals
  • No stop loss
  • Always exit EOD (no hold over night)
  • 100 simulations per year to smooth it out


The results
Year over year performance.
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Operate active investments of any sophistication in just a few clicks.

Eric Messenger's avatar
That would not surprise me at all. I have not been exposed to many actual investors because I came from poverty and nobody in my social circle has any type of financial education or background. However, I started a new job last year and dozens of people here are investing. After speaking with all of them, I realized that I am literally the only one who does due diligence. They all get their information from YouTube influencers and similar social media platforms. I have been preaching & teaching for a year, sharing whatever knowledge I can about researching investments and how to learn to get the edge. Now they just say, “hey, I bought some of this (insert random stock/crypto I mentioned in prior 30 days)”. So now, they just follow me instead of a YouTuber, which is flattering, but still ignorant. You shouldn’t follow ANYBODY when investing. Read others for insight or wisdom, another perspective, etc., but don’t blindly follow. Unfortunately, it seems that’s what the average do. Whether it’s a TV show, podcast, or social media platform, people think these “experts” know more than they do. People go their whole life without realizing they can crush the markets with 3-5 $0.50 books from Goodwill🤷‍♂️. I’m reading a contrarian book by David Dreman that might be the most under rated investing book I’ve ever read. Mostly about psychology so far and why humans fall into crowd psychology. Explains a lot that’s gone on in America recently, markets and otherwise. Great book if you want to avoid the heard mentality and massive losses that come with following the crowd. “The New Contrarian Investment Strategy”, by David Dreman.
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