35+ Day Trading Statistics Every Trader Must Know

Navigating the fast-paced world of day trading can feel overwhelming. Finding the best brokers for day trading that match your needs is the first step. But to really make things work, you need a clear understanding of day trading statistics. 

These numbers can help you make smarter choices, especially if you're using a funded trading account to maximize profit. In this blog, I'll show you how to use these stats to your advantage.

That's where AquaFunded's Funded Trading Program comes in. It offers tools and insights to help you make the most of your trading strategies.

Pros and Cons of Day Trading

Pros of Day Trading

1. Potential for High Returns  

Day trading can offer substantial profits when executed correctly. With leverage, even minor price shifts can lead to significant gains. Skilled traders who can consistently predict market trends and act swiftly can enjoy considerable financial rewards.

2. Independence and Flexibility in Trading  

Day trading offers independence, allowing traders to work from anywhere with an internet connection. You can set your own hours and trading strategies. This autonomy is appealing to those looking to escape the traditional 9-to-5 grind.

3. Rapid Decision-Making Ability  

Day trading sharpens decision-making skills. Quickly analyzing market conditions and executing trades is intellectually stimulating for those who thrive under pressure.

4. Limited Drawdowns in Day Trading  

By closing trades at the end of the trading day, you avoid overnight market changes affecting your positions. This control over your investments can limit potential losses.

5. Liquidity and Accessibility  

Day trading in highly liquid markets ensures you can easily enter and exit trades. Technological advancements and online trading platforms have made day trading more accessible than ever.

6. Immediate Feedback on Trading Performance  

Day trading provides instant feedback on your strategies and decisions. This real-time evaluation allows you to learn from mistakes and refine your approach quickly.

Cons of Day Trading

1. High Risk and Possibility of Significant Losses  

The potential for high returns comes with high risk. Day trading is notoriously risky, and even experienced traders can suffer substantial losses in unfavorable market conditions.

2. Time and Commitment Required for Success  

Day trading is a full-time job requiring immense dedication. Successful traders spend countless hours analyzing markets, developing strategies, and monitoring trades.

3. Emotional and Psychological Strain  

The emotional strain of day trading can be overwhelming. The pressure to make quick decisions and the fear of losses can create a rollercoaster of emotions.

4. Transaction Costs and Associated Fees  

Frequent trading incurs significant costs and fees. These can add up and eat into your profits, so consider them when planning your trading strategy.

5. Potential for Addiction to Trading  

The thrill of day trading can be addictive, leading to unhealthy habits. This can result in reckless decisions and significant financial losses.

6. Necessity for Thorough Research and Analysis  

Successful day trading requires staying informed about market trends, news, and economic indicators. This level of commitment can be time-consuming and demanding.

How Profitable is Day Trading

Revealing the Reality: Is Day Trading Profitable?

Day trading can be a thrilling endeavor, but consistently making money is a different story. Few traders achieve steady profits over time. Most either break even or lose money due to high costs, emotional pressure, and the market’s fast pace. 

Successful traders typically earn between 1% and 4% monthly on their capital, translating to about 0.03% to 0.13% per day when averaged across trading days. For instance, someone with €100,000 might earn between €1,000 and €4,000 monthly if they’re skilled and disciplined. But this level of success demands significant expertise, risk control, and market knowledge.

Costs and Challenges: The Unseen Barriers to Day Trading Success

Transaction fees, taxes, and slippage can eat into profits, making day trading less lucrative. With numerous trades each day, even small costs add up fast. Leverage can boost profits but also increases the risk of significant losses. 

Many traders lose most of their capital by overleveraging or making emotional decisions. Day trading requires full-time commitment and mental discipline. Constantly monitoring charts and market movements can be stressful, leading to impulsive mistakes. It also demands strong emotional control to handle losing streaks without deviating from a strategy.

Long-Term Performance: Why Day Trading Often Falls Short

Compared to long-term investing or diversified portfolio strategies, day trading usually performs worse after accounting for costs and risks. Studies of trading data show that most high-frequency traders underperform market averages over time, and only a tiny group achieves sustainable profits.

Discover AquaFunded: Your Day Trading Partner

Turn your trading skills into substantial profits without risking your own capital. AquaFunded offers a funded trading program, giving you access to accounts up to $400K with flexible conditions—no time limits, easy profit targets, and up to 100% profit split. Join over 42,000 traders worldwide who’ve already collected more than $2.9 million in rewards, all backed by our 48-hour payment guarantee. Start trading today with instant funding options or prove your skills through our customizable challenge paths.

Related Reading

• Is Day Trading Illegal
• How Risky Is Day Trading
• Can You Make Money Day Trading
• Is Day Trading A Good Side Hustle
• How To Find Stocks For Day Trading‍
• What Type Of Trading Is Most Profitable
• How To Trade And Make Money
• Do You Pay Taxes On Day Trading
• How Long Does It Take To Become A Profitable Day Trader
• Can Day Trading Be A Career

35+ Day Trading Statistics Every Trader Must Know

1. Only about 1% to 20% of day traders consistently make money.

2. Between 70% and 90% of traders lose money over time

3. Around 95% of day traders never reach sustainable profitability.

4. In professional trading groups, fewer than 20% of traders are profitable.

5. The vast majority of retail traders stop trading after a few months of losses.

6. Only about 3% of traders remain profitable after a full year of trading daily.

7. Less than 1% of day traders consistently outperform the market over several years.

8. The small group that succeeds typically earns modest daily returns of 0.03% to 0.13%.

9. Many traders underestimate the long-term impact of small daily losses, which compound quickly.

10. Frequent trading often leads to worse performance than holding positions for more extended periods.

11. Attrition and Longevity

12. Around 40% of beginners quit day trading within the first month.

13. Nearly 75% of traders give up within two years of starting.

14. Around 85% quit within three years due to continuous losses.

15. Only about 13% of traders remain active after three years.

16. Most traders who persist for longer than five years have experienced at least one significant account loss.

17. A tiny percentage of long-term traders maintain consistent performance beyond five years.

18. Earnings and Capital

19. Successful traders typically earn 1% to 4% monthly on their trading capital.

20. Those with smaller accounts find it challenging to make meaningful profits after fees and taxes.

21. Large accounts, often over €100,000 or similar in value, are required for a stable monthly income.

22. A small number of traders earn over $50,000 annually from day trading.

23. Many traders overestimate potential profits and underestimate risk exposure.

24. Losses tend to increase during high-volatility periods due to emotional trading.

25. Behavior and Habits

26. About half of traders consider finding a solid strategy their biggest challenge.

27. One in four traders says coping with losses is the hardest part of trading.

28. Around a third of traders revise or update their trading strategies every few months.

29. Over 70% of traders agree that backtesting is essential to developing profitable strategies.

30. About a third of traders struggle to apply backtested strategies to real-time markets.

31. Another third cites difficulty in accessing accurate historical data for backtesting.

32. Roughly 40% of traders treat trading as a full-time profession, while about 45% do it as a hobby.

33. Trading Styles and Tools

34. Nearly half of traders prefer stock trading, followed by futures and forex.

35. Swing trading is more common than pure day trading.

36. The majority of day traders rely on digital charting platforms and algorithmic tools.

37. Around 60% use risk management techniques like position sizing and capital allocation rules.

38. Nearly 90% use stop-loss orders to control risk per trade.

39. Short-term strategies like breakout trading succeed roughly 30% of the time.

40. Trend-following day strategies show success rates closer to 20%, depending on market conditions.

Related Reading

• Can Day Trading Make You Rich
• Best Moving Average For Day Trading
• How Much Can You Make Day Trading With $1,000
• Day Trading Technical Analysis
• Day Trading Momentum Strategy
• Day Trading With AI
• Day Trading Futures For A Living
• Day Trading Setup
• Day Trading Goals
• Automated Day Trading
• Day Trading Success Rate

11 Tips for Day Trading Successfully

1. Leverage Aqua Funded for Risk-Free Trading

Equipping your trading expertise without putting your own money on the line sounds appealing. AquaFunded offers you that opportunity. You can tap into accounts up to $400K and enjoy some of the most flexible trading conditions out there. Forget about time constraints and daunting profit targets. With up to 100% profit split, you can join over 42,000 traders who have already earned more than $2.9 million in rewards. The best part? You’ll get paid within 48 hours. Choose between instant funding or challenges that let you keep every penny you earn.

2. Stay Informed with Market News

In trading, information is your ally. Staying on top of the latest stock market news and events that impact stocks is crucial. This includes understanding Federal Reserve System interest rate plans and other economic indicators that can cause market swings. Create a wish list of stocks you want to trade. Be knowledgeable about the companies, their stocks, and the general market conditions. Bookmark reliable online news sources and immerse yourself in business news. This will keep you ahead in the game.

3. Allocate Funds Wisely

Figure out how much capital you’re willing to risk per trade. Successful traders often risk no more than 1% to 2% of their accounts on each trade. For instance, if you have a $40,000 account and risk 0.5% per trade, your maximum loss is $200. Trade only with funds you can afford to lose. Choosing suitable online brokers and trading platforms is also essential for smooth trading.

4. Dedicate Time to Day Trading

Day trading demands your full attention. You’ll need to be glued to your screen for most of the day to track markets and spot opportunities. If you can’t commit to the time, consider other trading styles that align with your schedule. Being ready to act swiftly when opportunities arise is key to success.

5. Start Small and Keep It Simple

As a beginner, it’s best to focus on one or two stocks per session. This makes it easier to track and spot trading opportunities. With the rise of fractional shares, you can now invest smaller amounts. So, if Amazon shares are trading at $170, you can buy a fractional share for as little as $5. This approach keeps things manageable and reduces potential losses.

6. Steer Clear of Penny Stocks

While the low prices of penny stocks may be tempting, they’re often illiquid and carry high risks. Stocks trading under $5 can get delisted from major exchanges, making them harder to trade. Unless you’re certain of an opportunity and have done thorough research, avoid these risky bets. It’s challenging to find genuinely undervalued stocks among them.

7. Master the Art of Timing

The first and last hours of trading are usually the most volatile, with lots of price movement. Experienced traders can exploit this, but beginners should tread carefully. Instead, observe the market for the first 15 to 20 minutes without making moves. The middle hours are generally calmer, making them a safer time for newbies to trade.

8. Use Limit Orders to Manage Risk

Choosing the correct order type is crucial for entering and exiting trades. Market orders execute at the best available price, while limit orders let you set a specific price. A limit order can help you lock in profits or cut losses, although it may not get filled if the market doesn’t reach your price. As you gain experience, you can explore more advanced order types and strategies.

9. Set Realistic Profit Expectations

Your strategy doesn’t need to win every time to be profitable. Successful traders often win only 50% to 60% of their trades. The key is ensuring your wins outweigh your losses. Limit the financial risk on each trade to a specific percentage of your account. Clearly define your entry and exit methods to maintain consistency and control.

10. Reflect on Your Trading Behavior

Regular reflection on your trading behavior helps you identify patterns and learn from past mistakes. This fosters continuous improvement and ensures you adapt to ever-changing market conditions. It also encourages discipline and emotional control, both of which are vital for long-term success.

11. Stick to Your Trading Plan

Successful traders have a plan and stick to it. They develop their strategy in advance and follow it diligently, rather than chasing profits impulsively. Don’t let emotions drive your decisions. Remember the mantra: plan your trade and trade your plan. This discipline will help you stay on track and achieve your trading goals.

Join Our Funded Trading Program Today - Trade with our Capital and Keep up to 100% of the Profit

Ever wish you could trade without the stress of losing your own money? AquaFunded might be the answer. They offer traders access to accounts up to $400,000. Plus, they've got some of the most flexible conditions around: no time limits, reasonable profit targets, and even the chance for a full profit split. More than 42,000 traders are already on board, with over $2.9 million in rewards collected—and they promise payments within 48 hours. You can start trading right away with instant funding or take a customizable challenge to prove your skills. Either way, you get to keep up to 100% of what you earn.

Related Reading

• Day Trading Checklist
• Best Markets For Day Trading
• Best Day Trading Strategies That Work
• Day Trading vs Dropshipping
• Day Trading vs Long-Term Investing
• Best Day Trading Indicators
• Best Software For Day Trading

‍

‍

‍