From Rags to Riches: A Day Trader's Tale of Fortunes and Foresight (2024)

FAQs

Who is the most profitable day trader ever? ›

Steve Cohen is arguably the most profitable hedge fund trader ever. His SAC Capital returned 30% annually for more than 20 years since its inception in 1992, making Cohen a billionaire.

Key Takeaway: Day Trading Statistics

Low Success Rate: Only 13% of day traders maintain consistent profitability over six months, and a mere 1% succeed over five years. Financial Losses Predominate: 72% of day traders ended the year with financial losses, according to FINRA.

Day trading describes buying and selling common stock within the same day to profit from short-term price movements. Since they are prone to rapid price swings and high volatility, penny stocks are particularly attractive to day traders as opportunities for quick profits.

Jesse Livermore (1877-1940) was an American trader who over his long and renowned career traded both bull and bear markets including the panic of 1907 and crash of 1929. He is most famous today for being the object of the best-selling Reminiscences of a Stock Operator written by Edwin Lefevre in 1923.

In summary, if you want to make a living from day trading, your odds are probably around 4% with adequate capital and investing multiple hours every day honing your method over six months or more (once you have a method to even work on).

With a $10,000 account, a good day might bring in a five percent gain, which is $500. However, day traders also need to consider fixed costs such as commissions charged by brokers. These commissions can eat into profits, and day traders need to earn enough to overcome these fees [2].

The reality is that consistently making money as a day trader is a rare accomplishment. It's not entirely impossible, but it's certainly an imprudent way to invest your hard-earned cash. For people considering day trading for a living, it's important to understand some of the pitfalls.

Day trading can be profitable, but it's far from guaranteed. Many day traders end up losing money before calling it quits. Success in day trading requires a deep understanding of market dynamics, the ability to analyze and act on market data quickly, and strict discipline in risk management.

Can you make money with penny stocks? Yes, you can make money with penny stocks, but you can also make money playing the lottery, though you probably won't. To make money in penny stocks, you have to be able to separate the good companies from the bad, and that means you have to be able to analyze companies.

Have penny stocks ever made it big? ›

Monster Beverages NASDAQ: MNST

In 2003, savvy investors could have scored Monster shares for as low as $0.25. Instead, this former penny stock has seen massive gains for investors that have continued to hold for the past decade, hence why they're a part of our famous penny stocks list.

Day trading is often compared to gambling due to the similarities in risk and uncertainty involved. Both activities involve making speculative bets on the outcome of certain events, whether it's the movement of stock market prices or the roll of a dice.

Jesse Lauriston Livermore (July 26, 1877 – November 28, 1940) was an American stock trader. He is considered a pioneer of day trading and was the basis for the main character of Reminiscences of a Stock Operator, a best-selling book by Edwin Lefèvre.

George Soros

He is one of the most popular and famous traders worldwide. In England, Soros worked as a waiter or railway porter before he graduated from the London School of Economics. This finally led him to the banking world when he became a merchant banker at Singer and Friedlander.

Adam Smith is widely regarded as the father of modern trade and the free market. His avant-garde ideas are presented in An Inquiry into the Nature and Causes of the Wealth of Nations, a masterwork of political and economic analysis published in 1776.

George Soros - earned $1 billion in 1 day. Of course, George Soros is one of the top Forex traders. Perhaps, he is the best Forex trader in the world, and, for sure, he is the best day trader in the world.

Legend has it Takashi Kotegawa started with the equivalent of $13,600. He benefited from some luck and a lot of skill to rack up $153 million in about eight years. Sometimes he made millions per trade.