The numbers of active traders in the stock market on Robinhood and eToro confirm

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Twitter is full of traders who claim to make money by actively investing. They may be lying or it may simply be the winner's bias, but the truth is that all studies indicate that this practice is a bad idea .

Yes, Robinhood and eToro advertising always emphasize that it is possible to get rich simply by trading, but the reality is devastating . If anyone doubted that there is a lot that is "ready" that really isn't that much, just look at the data .


Losses of active investors
The data taken from Robinhood itself is brutal: the users of this online broker are more active and are more aware of the action that is in fashion, they invest in it and lose more than the average . For eToro the data is not better: % of eToro users who day trade lose money .

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But it doesn't end there: % of Brazilian day traders lose money ; most of Taiwan's day traders lose money (equivalent to % of their GDP ); and a long list of studies that indicate in the same direction: activ  Romania Email List  e investors, those who are most attentive to the market and trade every day, are the ones who lose the most money .



Why are there still people trying it?
We are in a time when it is easier to invest. And investing well is possible: there are very cheap indexed investment funds, both standard and listed, that allow you to diversify in a simple and cheap way . But of course, you have to think in the long term.

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Middlemen gain little from this strategy. Where brokers really win is when their users are trading consistently. The advertising of these platforms, added to the desire of some people to stand out, indicates a path for investors, but it is the wrong path .

You have to forget about day trading and invest calmly, thinking about the long term and never choosing individual shares, but groups of them that diversify individual risk. There is no other option. Everything else is just playing the lottery .