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.

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).

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.

Day trading does not help one get rich overnight. Many of the traders start intraday trading with an assumption that they can generate good money by making profits with just a single trade. But this is practically not possible and is not real as well. Experienced traders will attest to this.

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].

Day trading is a strategy in which investors buy and sell stocks the same day. It is rarely successful, with an estimated 95% loss percentage. Even if you do see a gain, it must be enough to offset fees and taxes, as well.

Key Takeaways: Day trading is similar to gambling because traders rely on luck and speculation to make money. Gambling is not based on a market analysis or on a consideration of fundamentals, unlike trading.

Day traders usually buy on borrowed money, hoping that they will reap higher profits through leverage, but running the risk of higher losses too. While day trading is neither illegal nor is it unethical, it can be highly risky.

1. George Soros. George Soros, often referred to as the «Man Who Broke the Bank of England», is an iconic figure in the world of forex trading.

How did Jesse Livermore lose $100 million dollars? ›

Jesse was highly successful but also lost his fortune several times. He was always the first to admit when he made a mistake, and when he lost money it came down to two potential culprits: The rules for trading were not fully formulated (not the case for most of his losses). The rules were not followed.

Livermore was one of the most successful stock market traders of all time. His idea was to sell stock quickly after its price rose. In this way he actually made a fortune in 1929, when so many other people were losing everything they owned.

Day trading is not illegal when it is done within normal trade hours and properly recorded. However, a similar practice known as late day trading is illegal and can be prosecuted under commodities fraud law.

Overview: Swing trading is an excellent starting point for beginners. It strikes a balance between the fast-paced day trading and long-term investing.

The defining feature of day trading is that traders do not hold positions overnight; instead, they seek to profit from short-term price movements occurring during the trading session.It can be considered one of the most profitable trading methods available to investors.

1. George Soros. George Soros, often referred to as the «Man Who Broke the Bank of England», is an iconic figure in the world of forex trading.