The Truth About Day Trading

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  • Опубликовано: 8 май 2024
  • Day trading, the activity of buying and selling the same financial asset on the same day, sounds like one of the smartest approaches to investing in stocks. Why bother holding onto an index fund when you can make daily profits? And to make day trading sound even better, there are lots of people on the internet nice enough to teach you how to trade, and make huge easy profits just like them, for a fee, of course.
    Timestamps:
    0:00 Introduction to what day trading can and can’t do for you
    0:36 Is day trading an effective strategy?
    6:43 Day trading for a living?
    7:52 The paradox of skill
    10:13 Why do day traders still day trade?
    Referenced in this video:
    The Cross-Section of Speculator Skill: Evidence from Day Trading
    www.sciencedirect.com/science...
    Just How Much Do Individual Investors Lose by Trading? faculty.haas.berkeley.edu/ode...
    Trading Is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors faculty.haas.berkeley.edu/ode...
    Day Trading for a Living? papers.ssrn.com/sol3/papers.c...
    Understanding Skill A Paradox Plus Qualitative and Quantitative Approaches research-doc.credit-suisse.co...
    Learning Fast or Slow? papers.ssrn.com/sol3/papers.c...
    All That Glitters: The Effect of Attention and News on the Buying Behavior of Individual and Institutional Investors pdfs.semanticscholar.org/1026...
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    ------------------

Комментарии • 803

  • @BenFelixCSI
    @BenFelixCSI  3 года назад +323

    At 3:14 I say the study sample period was 1995 - 2019. The animation says 1995 - 1999. The animation is correct. Missed that in post.

    • @ngominh7987
      @ngominh7987 3 года назад

      I'm taking cfa myself. basically if you want a career in the industry you must understand how it works

    • @WarwickAvgur
      @WarwickAvgur 3 года назад +1

      @@ngominh7987 , What level are you and who do you want to become?

    • @youtubewatcher1182
      @youtubewatcher1182 3 года назад

      @@WarwickAvgur What's Tesla's income minus green credits, which Tesla believes will start to decline in 2021.

    • @WarwickAvgur
      @WarwickAvgur 3 года назад

      RUclips Watcher
      , net income of 20 billion for the year 2022 given that corporate tax stays at 21%. They will sell 2,500,000 vehicles that year.

    • @BenFelixCSI
      @BenFelixCSI  3 года назад +8

      @@WarwickAvgur if you look at the CFA curriculum you will see that it is not only intended for active managers. Here it is for the 2020 Level III exam:
      Ethical and Professional Standards 10-15%
      Economics 5-10%
      Equity Investments 10-15%
      Fixed Income 15-20%
      Derivatives 5-10%
      Alternative Investments 5-10%
      Portfolio Management and Wealth Planning 35-40%
      All of these topics come up on a daily basis for me, and I am not an active manager.

  • @edwardmauer7442
    @edwardmauer7442 3 года назад +1694

    This is why I recommend night trading instead.

    • @JMise
      @JMise 3 года назад +17

      Just in time before daylight saving time ends! :)

    • @AnonozChong
      @AnonozChong 3 года назад +6

      US daytime, Malaysia night time. Yeap!

    • @stevo4535
      @stevo4535 3 года назад +9

      Lol that's funny

    • @sparcx86channel42
      @sparcx86channel42 3 года назад +6

      its called overnight, and thats the worst time for trade anything

    • @Anlerolo
      @Anlerolo 3 года назад +17

      Fucking legend

  • @FabioMees
    @FabioMees 3 года назад +639

    How to end up with 1 million dollars with day trading, start out with 2 million dollars.

    • @alexc5369
      @alexc5369 3 года назад +4

      But you wouldn't have made 1 million then, you would have lost 1 million.

    • @p.c.h.6721
      @p.c.h.6721 3 года назад +11

      @@alexc5369
      He’s joking, but right on the money 💰 👍

    • @user-ug3rj4ij9j
      @user-ug3rj4ij9j 3 года назад +19

      @@alexc5369 you obviously don’t understand sarcasm

    • @Bozemoto
      @Bozemoto 3 года назад

      @@alexc5369 you 'make' it disappear in this case.

    • @Tony-md7dk
      @Tony-md7dk 3 года назад +8

      How to end up with $1M when day trading....start with $2M.

  • @health_and_finance
    @health_and_finance 2 года назад +66

    "Since there is no evidence of learning among day traders, paying someone to teach you how to day-trade is only making your prospects even worse after costs"! Just brilliant!

  • @Green__one
    @Green__one 3 года назад +283

    I tried day trading for a while. After fees, I made a fair amount of money, and I was able to consistently beat my financial advisor who was managing my RRSP/TFSA accounts. As a result I was pretty pleased with myself. Then I learned that I was only barely matching the aggregate market returns for the same time period, but with a lot more effort. That finding was enough for me to move to passive ETF investing, and fire my financial advisor.

    • @hatter1290
      @hatter1290 3 года назад +71

      Everyone is a genius when the market is going up.

    • @Green__one
      @Green__one 3 года назад +33

      @@hatter1290 I was making money when the market was going down too. But long term I was only matching the aggregate market returns, and with a lot of effort on my part. Passive etf investing is so much easier, and for the same returns.

    • @pran10000
      @pran10000 3 года назад +8

      @@Green__one thats exactly what I always have wondered... all these traders never show their overall CAGR.. why do they still do it though? Some ppl sell courses and shit that’s a convenient source of income for them.
      But why do the others do it? thanks man!

    • @andriyshapovalov8886
      @andriyshapovalov8886 3 года назад +21

      @@pran10000 socially excepted form of gambling.

    • @faisalhusein227
      @faisalhusein227 2 года назад +5

      Used to day trading too. It's kind of stupid when you get the money just by holding.

  • @rubberroast1598
    @rubberroast1598 3 года назад +138

    I used to make a living playing online poker, when it was very new and not mainstream. My edge against the competition was large, as there were many inexperienced beginners to the game. I was making 50% more than my day job, but in half the time. After two years easy (and fun) living, I realized that even though I was still a good player, the skill level of the competition had greatly improved, so I went back to day job when the poker margin got slimmer. This day trading clip reminds me of these wannabe poke pros out there, very few make significant $$$, most over estimate their own skill level, and vast majority do not make $$ but like the thrill of the game.

    • @BenFelixCSI
      @BenFelixCSI  3 года назад +38

      That is a great comparison and an interesting anecdote. Thanks!

    • @MaxxerG
      @MaxxerG 3 года назад +1

      The easiest and fastest way to make money at poker is playing against the drunk fishes at planet Hollywood casino. I started with $100 bankroll and turned it into $3000 in 3 times

    • @exploringwithdave5926
      @exploringwithdave5926 3 года назад

      Not a fair analogy. I was a poker player too. But there is a limit to how much money you can make. There is a limit that is based on your ability to sit in a game, focused and prepared, and a limit of number of players which also spreads to number of hands per hour, etc, total money available at any given time to be won, etc etc.
      There is ZERO leverage in poker. It's dollar for dollar. Not so in trading. But, nice try at an analogy. You get a D grade for the effort, and it shows that you know very little about trading.

    • @PierSilver
      @PierSilver 3 года назад +10

      @@exploringwithdave5926 Are you drunk? Rubber's message was not related to day trading per se, but to the Paradox of Skill (starting from 8.35 in Ben's video).

    • @exploringwithdave5926
      @exploringwithdave5926 3 года назад

      @@PierSilver I am not drunk. It is very interesting, all of this information. All of these very fine well prepared and neatly typed and graphed reports. I suppose if "Day Trading" is narrowly defined to only include those person's who trade only in the market during trading hours and pull all trades by market close, so as not to carry a trade overnight, then I would likely agree with that data. And no, I am not drunk.
      However, I consider myself a "Trader". I exclude the notion of time. Why? Because every trade is unique, and all trades must be viewed in that context, which would dictate the timing, entry price, exit strategy, safety net, etc.
      But, the paradox of skill... Does not apply here. I would venture to say, like baseball, the skill level has risen and so has the competition. Except, not all of the competition is competent. This adds a level of variance which serves all sides. Call them the fish. Rational market algorithyms aren't so adept at understanding irrational behaviors. That gap creates opportunity. Nonetheless, I will agree that day trading is a challenging and In my opinion, less interesting method of trading that is more akin to and likely satisfying for, a gambler. I have watched some of them online and they are glued to 1 minute charts like addicts, calling out for green, and chiding the red... It's ridiculous and silly. Truly that is like watching KENO numbers or Slot Machines. Gambling at its best.
      I am a trader. Period. There are times when I'll trade something for a few minutes. If the opportunity presents itself, and there is bandwidth to catch some momentum, I'm in. But those are few and far between. I am a swing trader I suppose, with various trades in play at any one time, and a lot of energy researching them, watching them over the course of their lifetime, and making executive decisions to add or subtract from the positions as I see the trade develop. It is very different, and in many ways more like tournament poker.
      My point about Poker, regardless, is that the analogy he was making with Poker is not truly a good one. Even the idea that when you make money someone loses money is a fallacy in trading. In poker that is true. And when you wipe out all your players you hold all their money. Poker is not scalable. It relies on individualistic behavior. Trading is far different. And, I should know, because I am, or have played the part of both. I see zero corellation. In fact, I don't look at the market as a bunch of competitors. I see it very different. They are not necessarily competitors in the same manner. I view trading very differently. But then, I am different. I am successful. There is an idiom that applies to almost all forms of trading: 90% of traders lose 90% of thier stake, in the first 90 days. This is a likely outcome. It is true, like poker, that people approach it as if it were simply easy, and they act wreckless in it. That wreckless behavior often provides initial good fortune... But it wears itself out and the other side of luck catches the player off guard just as they were begining to believe they were experts! All of a sudden, broke. There is truly a parallel with that for sure. And, I suppose in that way alone, a good poker player is like a good trader. Know when to hold em, know when to fold em, and know when to walk away.
      But the activities themselves have extreme differences. By the way, poker is not gambling. That is a misnomer. Poker is a game, this is true, and like most games, skill is a predominant factor of winning. The same is true for "Trading Markets". This is evidenced by the number of very successful traders. I don't speak to Day Trading... That seems to. Me to be very casino like. I have that experience too, and approach it very differently.
      Let's have a drink sometime. Take care

  • @brandonmorin1179
    @brandonmorin1179 3 года назад +170

    Eyyyy, sound investment education delivered in crisp 4k.
    I actually had an instructor in a trading class while I was at uni that emphasized the need to avoid trading guru courses. Market efficiency being what it is, sustainable trading profits can only exist if you or a very small group of traders are aware of an established relationship in the market that you can exploit for profit. The more people know about it, the higher the odds are it'll be priced out by others flocking to take advantage of it. So chances are if someone's selling you a strategy it's probably because it no longer works lol.

    • @drsgme69
      @drsgme69 2 года назад

      Sounds good in theory, doesn't work in reality. You can't get rid of certain edges

    • @SKITTLELA
      @SKITTLELA Год назад

      @@drsgme69 Maybe risk factors as a whole, and for the long term. That's about it.

    • @wikiorg379
      @wikiorg379 Год назад

      @@drsgme69 Certain edges like what?

    • @fsdds1488
      @fsdds1488 Месяц назад

      My financial engineer professor told me that we are not learning to become a trader, no, we learn to become the casino staff, and casino never take risk itself, and that's when I realised what day trading actually means, fat profit for banks and agencies who actually manage their risk and earns premiums and commissions, not some gamblers who thinks they can outsmart everyone.

  • @whitedog0000
    @whitedog0000 3 года назад +9

    I like this formula when a topic is addressed in a podcast episode in a sort of "causal" way and then in a video in a more structured way. This helps understanding the subject especially for folks like me (not english native speaker) - also the videos are more understandable thanks of presence of titles and graphics. Love the new lighting, image quality is way better now. The content is always great 👍🏻

  • @abberantgeck0
    @abberantgeck0 3 года назад +83

    Technical trading is the astrology of economics.

  • @vpv-pp
    @vpv-pp 3 года назад +4

    Thank you Ben. We were awaiting to hear your opinion (backed up by data and research, of course) about day trading. And finally, here it is. It was pleasure to get exposed to scientific research and conclusions on this topic.

  • @user-ug3rj4ij9j
    @user-ug3rj4ij9j 3 года назад +2

    Thanks Ben! Definitely the best investment videos on RUclips.

  • @oflyordieo
    @oflyordieo 3 года назад +1

    Best channel in this field seen so far... I know that lotta work and time is needed, but I wish you could post videos more frequently! :)

  • @Duke-225
    @Duke-225 3 года назад +1

    Top notch as usual Ben. This one supports what most of us likely suspected all along.

  • @andregomesdasilva
    @andregomesdasilva 3 года назад +1

    Your videos are great. Your approach of using papers is the best.
    Thank you for sharing

  • @dorksalami
    @dorksalami 3 года назад +3

    Thank you so much for this. I've always felt like i've been missing out by not day trading, but this solid evidence based approach to analyzing day trading really helped solidify that gut feeling of hesitancy about it.

  • @adhvaryusrivastava8634
    @adhvaryusrivastava8634 3 года назад +3

    This was the video I was waiting for! Great video Ben

    • @Mosesusorer
      @Mosesusorer 3 года назад

      @Ben Felix Scam alert! 🇳🇬🤴🏿

  • @stevebroyles7150
    @stevebroyles7150 2 года назад

    Great perspective on the subject. Thanks! Love the channel

  • @dextrian
    @dextrian 3 года назад

    That´s one of the reasons I'm very grateful that I find this channel. Real data, from Real economical studies.
    There is just so much noise in the world that you might be convinced to believe that basic math is wrong. With is not the truth, of course.
    I know it will sound "guru stuff" but really, the information here makes me change my whole way of investing. Nowadays I mostly invest in index ETF, giving attention to market premium fundaments (ex: small stock with ETF: IWN) and when paying attention to buy/sell without paying attention to the S2 deviation of the prices (using Bollinger bands). And a correct tailing Stop
    It´s simple, it´s boring, it´s slow, but that is one of the most consistent strategies I have ever used in my life. And in compliance with basic math and market story.
    Thanks again. Keep up the good job.

  • @hussamkamel4001
    @hussamkamel4001 3 года назад

    Thank you Ben... another fantastic video answering great a question

  • @7vivec
    @7vivec Год назад

    brilliantly researched video - thank you Ben

  • @tyronevanwyk3652
    @tyronevanwyk3652 3 года назад +1

    Very well researched and presented. Thank you for sharing

  • @saadb0ys
    @saadb0ys 3 года назад

    Great work Ben. Love from Australia!

  • @PradeepSingh-vm1gl
    @PradeepSingh-vm1gl 3 года назад +3

    Love from India. The Content you provide is too good and valuable. You do so much hard work and we get your research at no cost (free). Thanks Ben Felix. :)

  • @laudermarauder
    @laudermarauder 3 года назад +9

    A great video, once again. Trading-course promoters are a pestilence on financial RUclips. Thank you for reading the relevant literature and presenting the findings so clearly. The results are in.

    • @NickOloteo
      @NickOloteo 3 года назад

      And some of those guys get views almost equal to Graham Stephan like Ricky and ziptrader

  • @roknrolla01
    @roknrolla01 3 года назад

    Excellent video as always Ben!!

  • @thao6112
    @thao6112 3 года назад

    Thank you for another great video Ben.

  • @cryptosminem1946
    @cryptosminem1946 3 года назад +26

    Day trading pro tip #1: buy high, sell low

  • @bhenley2081
    @bhenley2081 3 года назад +1

    Ben, you have the best finance channel on RUclips! Keep up the great content.

    • @Mosesusorer
      @Mosesusorer 3 года назад

      @Ben Felix 🚨🇳🇬🤴🏿 This is a scam y’all 🚨🇳🇬🤴🏿

  • @xunit94
    @xunit94 3 года назад +3

    Another great topic. Thank you for the quality content!

    • @Mosesusorer
      @Mosesusorer 3 года назад

      @Ben Felix Scam alert! 🇳🇬🤴🏿

  • @trs8696
    @trs8696 3 года назад +3

    day trading is the most persistent bad idea in personal finance. excellent video as always.

  • @justStardust940
    @justStardust940 3 года назад +1

    Thanks for educating us, Ben!!! :) my financial life is saved by you

    • @Mosesusorer
      @Mosesusorer 3 года назад

      @Ben Felix Scam alert! 🇳🇬🤴🏿

  • @chrisf1600
    @chrisf1600 3 года назад +14

    This is a really excellent video, packed full of fascinating information. Thanks Ben, have a sub ! I feel quite glad to have lived through a time when human ingenuity could still find an edge over the algos, but I think those days are now numbered. It's sad, really. As machine learning and synthetic intelligence gets more capable, the absolute skill level will increase to a point where only those with the largest server farms can possibly gain an edge. To us mere humans, markets will simply appear to be random noise, responding so quickly to emerging news that there's simply no way to compete. A few well-financed robo-traders will suck up all the alpha, the rest of us will have to stick with our Vanguard funds.

    • @dillonherrmann7686
      @dillonherrmann7686 4 месяца назад

      You can legit use something like fibonacci levels lmao

  • @willmullins7925
    @willmullins7925 3 года назад +1

    Hi Ben, love the videos! I'd be interested in you doing a video on the scottish mortgage trust and its outperformance vs the market over the last few decades. It seems to contradict some of your main video themes, but I may misunderstand. Cheers!

  • @DiamondTear
    @DiamondTear 3 года назад +1

    The image quality is just great on this video.

  • @iQinvesting
    @iQinvesting 3 года назад +1

    Great video as always. Day trading will likely never end as too many people can't accept market efficiency and there will always be people who think they can outperform the market. Some people are just in it for the fun, I think, which is great but it doesn't make much rational sense and does not align with long term financial planning.

  • @brettambrose417
    @brettambrose417 3 года назад +30

    And imagine how much this analysis would tilt further in passive investors favour if you factored in the day trader's opportunity cost of not working a different full time job.

    • @sapitron
      @sapitron 3 года назад +5

      Passive investor and dog walker = genius

  • @Bolensgoldrush
    @Bolensgoldrush 3 года назад

    Awesome video! As a new investor, I've always know day-trading was a bad investment method, but I didn't know why. Thanks!

  • @loyaranha
    @loyaranha 3 года назад

    Thank you Ben , Fantastic video again. Long time fan of your pods and RUclips series. Thank you for you insights into this. Do you have any data with regards to US or Canadian stocks and day trading ?

  • @LaurianBotez
    @LaurianBotez 3 года назад

    very informative, thanks Ben!

  • @tthinker9897
    @tthinker9897 3 года назад +14

    Thank you so much. An in-law of my is encouraging me to venture into options and day trading. My portfolio has been doing quite nicely with just long term growth investing, but I have been tempted. I had no idea that the prospects of day trading for the newbie were so bleak! With the rather startling information presented, I think I'll just pass on the glittery world of options and day trading.

  • @moon8canoe
    @moon8canoe 2 года назад

    Fantastic data and approach. Thank you!

  • @user54-hw7js5dh8jik
    @user54-hw7js5dh8jik 3 года назад +8

    Thank you, Ben for insightful and data-based view on the topic. While there's discussion about day-trading, which is "the activity of buying and selling the same financial asset on the SAME day", I believe a lot of people including subscribers to your channel would be interested to explore how efficient "swing trading" or short-term trading is, when trades are made not within the SAME day, but rather within a week or a month.

    • @sleepless2541
      @sleepless2541 11 месяцев назад

      There's the LTREV, STREV, and Momentum (cross sectional/trend following) factors, maybe they could be compared to other types of trading

  • @pineappleyuvi5667
    @pineappleyuvi5667 3 года назад +1

    Most underrated channel on RUclips

  • @andreyb.1835
    @andreyb.1835 3 года назад +4

    Thank you Ben! I've lost so much money in last four years trying to buy small cap value stocks (energy mostly). I've decided to change my view entirely and hold ETFs and MFs only.

  • @p.c.h.6721
    @p.c.h.6721 3 года назад +3

    I was so waiting for a video about day trading, it’s a epidemic nowadays, courses being offered all the time.
    Thanks a lot 🙏
    (I’ve never listened to a podcast, where can I subscribe or listen to your podcast?)

    • @sohum2020
      @sohum2020 3 года назад +1

      Link in the description link to the video

  • @MaelstromGuy
    @MaelstromGuy 3 года назад

    I've been reading about day trading for a week, its refreshing to hear a realistic aproach to the day trading activity, when I see a video about how easy and fast it is to earn money on day trading I just turn my ears off, it is risky, statistics are against you, if it is so easy why isnt everyone doing it? Thanks for the video you earned my subscription.

  • @PriceTimeCrypto
    @PriceTimeCrypto 3 года назад +1

    Fantastic video! I hope it reaches the ears of those who need it most.

    • @Mosesusorer
      @Mosesusorer 3 года назад

      @Ben Felix 🚨🇳🇬🤴🏿 This is a scam y’all 🚨🇳🇬🤴🏿

  • @OroborOSX11
    @OroborOSX11 3 года назад +1

    Fantastic video as always.

  • @jean-marcfiliatrault266
    @jean-marcfiliatrault266 3 года назад

    Hi Ben! Luv your videos. Incredibly insightful with the use of backup of studies. With regard to this video, you mention that “some” people do make real money day trading. As per your videos about “Stock picking” and “Warren Buffet”, it would have been great if you had data on whether it’s always the same day traders over time that make money or if “luck” moves around. The reason I say this is because I have a friend that keeps tell me that he’s one of the few that make money day trading. Maybe he does, and then again, maybe he doesn’t. Hence the value of finding out if “luck” moves around from one “savvy” day trader to the next... 😉

  • @demilishing
    @demilishing 3 года назад +3

    In another life you could have been an amazing teacher as your everyday job, you are able to get across information in an enjoyable way which is very hard to do.

    • @Mosesusorer
      @Mosesusorer 3 года назад

      @Ben Felix Scam alert! 🇳🇬🤴🏿

  • @AurelioPita
    @AurelioPita 3 года назад

    Another great video. Thanks Ben.

  • @Frinans
    @Frinans 3 года назад +2

    As always... Just great!

  • @danielnavarro2597
    @danielnavarro2597 3 года назад

    Ben Felix, Thanks for a rational and well thought out consideration of Day Trading and Guru's selling Day Trading Courses.

  • @kool2btrue
    @kool2btrue 3 года назад +8

    My issue with these studies is that most of them have been performed over periods of time where information wasn't as accessible as it is today and most simply don't track modern trading. Counter-arguments:
    * $0 commission trading is a fairly new phenomenon that has become the new normal from 2018 to 2020. That alone would skew most day traders particularly new day traders into the underperforming territory prior to this shift. Now day traders have unlimited day traders in extremely quick succession.
    * Modern tools are far more sophisticated with several charting and indicators that had not been invented prior to the 2000's. They are not magic buy and sell points, but will allow skilled traders to make more educated predictions by following linear trends and momentum.
    * Information into baseline day trading is more widely available on the internet. Prior to Google and RUclips it would have been difficult for anyone to acquire any skill prior to trading without any sort of mentorship. Retail investors would have ZERO shot of beating industry traders in the time frames described in these studies.
    * The definition of day traders is conveniently broad in these studies. Are all these people self-proclaimed day traders? Or are they entry-level investors who have no clue what they are doing? I mean, a ton Robinhood millennials would probably fall within this "day-trader" category and they would probably have no idea that what they are doing is considered day trading. In their mind they are just "investing".
    * There is an influx of millennial influence that is starting to take effect on the markets. If I read another article from hedge fund manager bitching about how millennial retail investors are ruining their precious money printing algorithms, I'm going to lose it.

  • @Michele-nz8oz
    @Michele-nz8oz 3 года назад +18

    I have just recently started learning about financial markets, investments and trading.
    Thanks to this video, and many others, I can confirm I will not become a trader.

  • @Bsketball77
    @Bsketball77 3 года назад +436

    The real winners here are the 5.7% of people who learned their lesson to stop day trading after just one day.

    • @calebolynick6685
      @calebolynick6685 3 года назад +33

      Most of them lost their accounts the first day I'm assuming.

    • @ZacharyBittner
      @ZacharyBittner 3 года назад +25

      That was me lol. Should clarify. I tried to day trade one stock once and was like "yeahhhh.... This isn't really rational"

    • @weeaboobarko
      @weeaboobarko 3 года назад +16

      You're assuming that that's not because they yolo'd their entire portfolio on a SPY call expiring the next day

    • @akin242002
      @akin242002 3 года назад +9

      @@weeaboobarko That would be Option trading rather than traditional day trading. An option trade treated like a day trade is called Scalping.

    • @evancampbell7138
      @evancampbell7138 3 года назад +1

      Good one! 🤣

  • @compoundingloonies
    @compoundingloonies 3 месяца назад

    What a great video. This is an eye opener!

  • @todutavalentin8027
    @todutavalentin8027 3 года назад

    You are f...king awesome. Thanks for sharing the info.

  • @NimrodicusRex
    @NimrodicusRex 3 года назад

    Comment for algorithm. Nice video, need to show this to clients

  • @judahokonkwo3866
    @judahokonkwo3866 3 года назад

    Thanks for another amazing video

  • @chuckgaver
    @chuckgaver 3 года назад +254

    So you’re telling me there’s a chance...

    • @elmateo77
      @elmateo77 3 года назад +7

      There's definitely a chance. If you have a genius IQ and dual PhDs in mathematics and machine learning.

    • @MarioKubik
      @MarioKubik 3 года назад +27

      There's a chance to win the lottery as well...

    • @caedros
      @caedros 3 года назад +3

      lol! You bet!

    • @chrisf1600
      @chrisf1600 3 года назад +7

      Ahhh, a fellow optimist. I'm planning to fund my retirement by buying lottery tickets. Much easier than day-trading : I only need to get lucky once and i'm set for life :)

    • @yuvalomrad7090
      @yuvalomrad7090 3 года назад +8

      Ha ha nice reference for Jim Carry

  • @Michael284m
    @Michael284m 3 года назад +33

    Amazing research Ben, as always... Nobody should be day trading unless they are Jim Simons and have a full room of the best mathematicians in the world.

    • @dhess34
      @dhess34 3 года назад +7

      Last I read, I think they had 200-ish Ph.D’s on staff. (Real Ph.D’s: math, physics, etc)

  • @sohum2020
    @sohum2020 3 года назад +5

    Another great video, Ben. Thank you! It's unfortunate that even with evidence based videos like this one, most people would still try to day trade trying to beat the market. At least do it with money you really don't need, same goes for gambling.

    • @Mosesusorer
      @Mosesusorer 3 года назад

      @Ben Felix 🚨🇳🇬🤴🏿 This is a scam y’all 🚨🇳🇬🤴🏿

  • @governormcgovenor8541
    @governormcgovenor8541 2 года назад

    Spot on! Listen and learn.

  • @Mr.dr.brotherman
    @Mr.dr.brotherman 3 года назад

    Bens videos are gold☄️🚀🙏🔥

  • @bfshorts6443
    @bfshorts6443 3 года назад

    The part about how people go to places where others refer or find on TripAdvisor or have good photos, are more likely to be disappointed when they actually get there and the place is full of people, is such a good analogy to people who chase stocks with huge intraday volatility or are always in the news.

  • @MoneywithPennies
    @MoneywithPennies 3 года назад +1

    *Hope the people how really need to see this video will. Thanks for spreading the truth Ben.*

    • @Mosesusorer
      @Mosesusorer 3 года назад

      @Ben Felix 🚨🇳🇬🤴🏿 This is a scam y’all 🚨🇳🇬🤴🏿

  • @frostman9661
    @frostman9661 3 года назад

    So many people need to see this... Too many people are too gullible! Thanks for the video!

  • @mykod9651
    @mykod9651 3 года назад

    Thanks for the very informative video.
    Have you done any research on doing covered calls? Would love to hear your thought and insights on the matter.

  • @dav0625
    @dav0625 3 года назад +1

    Once gain, excellent video, thanks Ben.
    Good point to shade some light on the gambling side of this activity. People around me doing day trading mostly focus on newspaper stocks (Tesla, Amazon, FB...), do they compare their return to a benchmark ? do they care ?

  • @pradeepdarji5407
    @pradeepdarji5407 3 года назад +194

    Most of them are making money selling their courses not day trading

    • @akin242002
      @akin242002 3 года назад +1

      @@Smartskull0 Not true. A small percentage, as Ben mentioned, do make legit money day trading. Those are the ones proud to show their monthly statements. However, 99% are making money selling courses.

    • @Ikaros23
      @Ikaros23 3 года назад +7

      it`s like the old days with the goldrush. The desperat men looking for gold always went bankrupt. It was the men selling alcohol, whores, food, shelter, equipment to the golddiggers that made money. And maby 0,001% became rich from the gold ( that they often lost again gambling it all away in the stockmarket). Real fortunes are made on investing in the long run ore making real products/services and selling it to the public. The same go with speculating in the short run in realstate vs buying holding/renting out. the first is gambling the second is a legit way of making money

    • @trakrekkid
      @trakrekkid 3 года назад

      Yeah, or just with shitloads of RUclips views like humbled trader

    • @pran10000
      @pran10000 3 года назад +1

      @@Smartskull0 very true. Besides they never show their overall CAGR, just profitable trades as proof

    • @catchingpipsfx8332
      @catchingpipsfx8332 3 года назад

      False!! Who tf hell doesn’t want to make a course to show people how to get money like them? Exactly, stupid!

  • @UnHermitano
    @UnHermitano 3 года назад

    great video Ben, would like to see you talking about copy trading.

  • @aog838
    @aog838 3 года назад +5

    EMERGING MARKETS, COVERED CALL, DEFENSIVE investing strategy, UNCORRELATED assets -- my suggestions for next videos. Thank you, I always watch.

    • @Mosesusorer
      @Mosesusorer 3 года назад

      @Ben Felix 🚨🇳🇬🤴🏿 This is a scam y’all 🤴🏿🇳🇬🚨

  • @daniel411vm
    @daniel411vm 2 года назад

    Absolutely hit the nail on the head !

  • @giordanomoro1391
    @giordanomoro1391 3 года назад +3

    Great video as usual. Thanks for showing with data the enormous difference between gambling (in the form of day trading) and investing. Unfortunately the horrible results of day traders, stock pickers and market timers scared off so many people from doing real long term investing. Good quality information, like the one in your channel, is a great "weapon" to empower people to be rational (passive, buy and hold) investors. Thanks and cheers from Europe!

  • @tavor29
    @tavor29 3 года назад +1

    Hi Ben! Could you make a video explaining how and why stock prices change? What affects the daily rise / fall of a stock price? Is it the same case with mutual funds/ ETF'S?
    Thank you!

  • @OzHunter
    @OzHunter 3 года назад +2

    Hey Ben thanks for the video, do you know (or anyone for that matter) any academic research done about David Swensen or Ray Dalio's approach? It would be great to know your thoughts about them as well! Thanks again for yet another great video.

  • @indexanleger-etfsfurfortge9494
    @indexanleger-etfsfurfortge9494 3 года назад +3

    Great Video as always Ben!
    Are you back to your old two week schedule? Looking forward to more excellent content.

    • @BenFelixCSI
      @BenFelixCSI  3 года назад +3

      I hope so. I’m working on some research intensive topics right now though so I can’t guarantee it.

  • @seansmith3267
    @seansmith3267 3 года назад +1

    Love watching your videos - just wondering - why are some of your video captioned and this one isn't? I depend on the captioning to follow on what's being said. Thanks for educating us!

    • @BenFelixCSI
      @BenFelixCSI  3 года назад

      I’m not sure. I’ll look into it.

    • @seansmith3267
      @seansmith3267 3 года назад +1

      @@BenFelixCSI Your video now has captioning! Awesome and enjoyed the video. Would like to ask on what process you had to follow? Why were other videos were captioned and this one wasn't? Really do appreciate the effort you had to put in to get it captioned.

  • @saadselects8080
    @saadselects8080 3 года назад +34

    Thanks Ben. Im an index investor but a couple weeks ago, I almost purchased a $5000 course on trading. This just confirmed my decision not to do so. Im staying the course with indexing!

    • @exploringwithdave5926
      @exploringwithdave5926 3 года назад +2

      You don't need to pay money for a course in trading. And you don't need to go to medical school if you want to be a doctor... Oh, wait, you do. Well, ok. Maybe you could home school yourself to be a doctor. After a few dead patients you'll start to get the hang of it. Right?
      Ok. So, the fact is, you need to INVEST SOMETHING to get something. To attain a skill, you need to invest time and attention coupled with practice and evaluation. You can seek that knowledge on your own, if you aren't like the typical lazy person who believe you get a dollars worth of value from a dollars cost of education or tutoring.
      I'll tell you flat out that most (if not all) trading school schemes today are bogus, but not because the content is poor, but because they over estimate the students abilities to even get close to understanding any of the content before they go heads up broke.
      Don't be lazy. Read. Watch. Practice with a small account. Read more. Watch more. Practice more. Rome was not built in a day my sad friend. Money cannot buy you ability without a more personal investment of your own interest, time, attention, practice, and rework.
      Piano is just as hard and takes 20 years to master, or we would just become concert pianists too. For some it could be faster.

    • @framed9240
      @framed9240 3 года назад +5

      @@exploringwithdave5926 thats legit a BS argument. comparing a hobby trader with a doctor saving lifes. like cmon t-dog.
      yeah its true that u can and should invest into your education. but the thing is you can gather all the information free if you put in the time.
      if you pay 5k it will take a while to make it back, and beeing profitable in the first year will be a hard thung.
      but ye men i see your point

    • @malston01
      @malston01 2 года назад +1

      Dude🤦🏽‍♂️

    • @wethepeople2749
      @wethepeople2749 2 года назад +3

      @@exploringwithdave5926 Better to learn a real skill like electronics engineering. Then I can invent something that can make millions as well as create businesses. Trading doesn't provide any extra useful skills.

  • @ProfessionalTycoons
    @ProfessionalTycoons 3 года назад

    such an informative video!

  • @MrBonified66
    @MrBonified66 3 года назад +2

    I have a background in online poker and every aspect of this rings true with my experience of that. Right down to bots coming in and squeezing value even more. A lot of people could beat the game, but only a few could beat the rake.

    • @elmateo77
      @elmateo77 3 года назад

      And those were mostly just some Russian teenager trying to squeeze money for vodka out of suckers in poker tournaments, with stock trading you're up against multi-billion-dollar companies hiring teams of geniuses with PhDs to design their trading bots. The chances of you coming out ahead in the long run are basically zero.

  • @beautyofthailand7393
    @beautyofthailand7393 Год назад

    Thank you. I hope you do a video on Dilution of Stock and it's impact on the investor

  • @HikmetYolcusu
    @HikmetYolcusu 5 месяцев назад +1

    In summary day trading is just gambling! Great video! Facts based and well explained. Thank you 🙏

  • @Outta12
    @Outta12 3 года назад +20

    He speaks the truth. I wish I saw this video 15 years ago. He forgot to mention paying for software and data feeds. Heavy losses and the opportunity cost of not putting that money that was lost, into an index fund and participating in the gains of the market overtime. People who day trade will tell you about their gains but trust me, they aren't telling you all of their losses so dont fall into the trap of " keeping up with the Jones" in day trading.

    • @teun7923
      @teun7923 3 года назад

      Il thrust you.

    • @Outta12
      @Outta12 3 года назад

      @@teun7923 🤣 I just caught that

  • @JoaoTito_1
    @JoaoTito_1 3 года назад +7

    I would really enjoy making subtitles to my fellow brazilians to this video. Day trading courses and platforms exploded in the last couple years here. Many of these courses are borderline scams, and some are more about self help (selling the idea of success) than trading itself.

    • @AmandaVieiraMamaesouCult
      @AmandaVieiraMamaesouCult 3 года назад +2

      I saw statistics that show 99% of Brazilians who day trade lose everything. Most of them make minimum wage.

  • @JP-cl3sr
    @JP-cl3sr 3 года назад +2

    After listening to 85 episodes of Rational reminder podcast, I watched all your RUclips videos again and I conclude with high level of confidence to have identified an small value superb quality channel. It might be the only time ever I wish to pick individually a share... where can I invest in this channel, through PWL Capital?!! Great job, thanks a lot for sharing this precious knowledge

    • @Mosesusorer
      @Mosesusorer 3 года назад

      @Ben Felix 🚨🇳🇬🤴🏿 This is a scam y’all 🚨🇳🇬🤴🏿

  • @dhess34
    @dhess34 3 года назад +1

    Yet another video where Ben forgot to write “*blink*” on his teleprompter...
    (I LOVE your videos/podcasts; keep ‘em coming!)

    • @fmjs5146
      @fmjs5146 3 года назад +3

      Maybe he's blinking at the same rate you're blinking, so you miss it

  • @josecillo16
    @josecillo16 3 года назад

    Clear said. Thanks

  • @kyhermit
    @kyhermit 3 года назад +9

    Traded US stock index futures full time from 2007-2014. Frequent trading activity generates significant transactions costs beyond commissions, including slippage (getting a worse fill than expected) and continually paying the bid-ask spread. Limit orders do not eliminate this as you rarely get filled unless price trades through your limit, so you are effectively paying the bid-ask even then. The continual drag of this "overhead" reduces wins and magnifies losses, something rarely discussed by the gurus.

    • @BenFelixCSI
      @BenFelixCSI  3 года назад

      What was it like day trading for a living?

  • @sndprasad123
    @sndprasad123 Год назад +1

    Really worthy insights

  • @fzigunov
    @fzigunov 3 года назад +1

    Now I can refer my friends to this.

  • @sanaungable
    @sanaungable 3 года назад

    Welcome back

  • @paulsantori8920
    @paulsantori8920 3 года назад +1

    Thanks for confirming my thoughts on day trading, man do I hate those annoying adds always interrupting otherwise informative videos.

    • @Mosesusorer
      @Mosesusorer 3 года назад

      @Ben Felix 🚨🇳🇬🤴🏿 This is a scam y’all 🚨🇳🇬🤴🏿

  • @khsimagesdotcom856
    @khsimagesdotcom856 3 года назад +1

    The content is valuable on this channel as he's good at explaining and interesting. I listen because I want to understand how to invest for retirement. Instead of time-consuming and risky day trading, I want to keep investing in something where my money is likely to grow as much as possible in the next 20-30 years. His videos often seem to give pieces of how to approach these questions, but often leave more desired. Maybe that's because a lot of his audience is interested in opening brokerage accounts and investing or trading. There have to be a bunch of people who want to understand more about how to pick good funds to invest in and just revisit to rebalance and make tweaks and there. IDK, what do I know.

    • @Mosesusorer
      @Mosesusorer 3 года назад

      @@user-kb5jb2ez3n 🚨🇳🇬🤴🏿 This is a scam y’all 🤴🏿🇳🇬🚨

  • @xMohJeex
    @xMohJeex 3 года назад +2

    Hi Ben! Thanks for the videos. Can you make a video about the current state of the markets and what the future could hold? There are a lot of doom and gloom videos currently saying that a crash is inevitable and that we are in a bubble, citing ratios such as the Shiller PE ratio and the Buffet indicator. Would be interested in hearing your opinion on this.

    • @rootstone9883
      @rootstone9883 3 года назад +3

      Buy and hold, wear a mask, go outside and enjoy life without watching the news.

  • @anonymousswimmer4010
    @anonymousswimmer4010 3 года назад

    Ben - I'd love if you could do a video on what is known about returns in high frequency trading and / or hedgefunds. Thank you!

  • @tarikaz
    @tarikaz 3 года назад

    Hi Ben, I enjoy your videos!!
    So what is your recommended portfolio (list of ETFs and their weights) for long term investors (who are based outside of the US, so if you can recommend ETFs which are more favorable from a taxation perspective - i.e. with low/no WTH on dividends - that would be really appreciated)

  • @andrewdixon2730
    @andrewdixon2730 3 года назад +1

    Hi Ben,
    Would love to see a video on writing options. Seems as though they are just leveraging their investments and therefore potentially making larger returns but without factoring in the higher risks?

    • @Jordan-zp4tv
      @Jordan-zp4tv 3 года назад +1

      Volatility Risk Premium, nothing new

  • @ivannierez7731
    @ivannierez7731 3 года назад

    "Everyone it's getting better" that's just life man