If you’re new to the financial game, day trading might sound like a complicated way to make a lot of money fast. However, trading on the stock market is a lot more common than you would think. So, how many day traders are in the world?
There are no statistics on the specific number of day traders in the world. However, there are around 10 million active traders in the foreign exchange market (Forex). 9.6 million of those traders perform online trading, meaning that 1 in 728 people worldwide trades online in Forex.
In this article, we look at day trading and where you can find the most popular markets. We also examine what most traders are trading and how successful they are. Lastly, we discuss why day trading is so popular.
What Is Day Trading?
Day trading is the practice of buying and selling positions within a day to avoid the overnight risk of losing. A day trader won’t hold a position for more than a day or two, depending on their trading strategies. A day trader’s goal is to profit from the short-term price change of a specific position.
Where Are the Most Popular Markets?
The most popular markets globally are the American market, the Asian market, and the European market. These markets increased their trading numbers thanks to a surge of online platforms for traders. These platforms make it easier for new traders to start.
As of November 2020, there are around 1.65 million active traders in North America. There are about 3 million traders in Asia and 1.5 million in Europe. The foreign exchange market’s worldwide trading volume is 5 trillion dollars daily, making Forex the world’s largest financial market.
The United Kingdom has the most online traders in Europe. At least 1 in 100 Brits has traded online. Millennials represent 58% of the UK’s total traders. However, less than 1% of active traders in the UK earn more than 75,000 pounds a year.
Most traders live in Asia, where at least 1 in every 600 internet users in the region has performed online trades. Africa, however, has the newest online traders in the world, with around 1.5 million active traders. Many experts believe this number could grow higher in the next decade.
You should know that the foreign exchange market is so popular thanks to the lower regulations for new traders and day traders. The term pattern day trader means that the person will get more restrictions and limits than others. It is common in most local markets but not in the Forex.
Combining the lack of regulations and requirements, we can assume that day traders prefer to trade online and in the foreign exchange market.
How Many Day Traders Are Successful?
No one knows precisely how many day traders are successful. However, industry experts report that only 1% of day traders make a considerable profit after taxes and fees.
Day trading is a dangerous trading strategy that can lead you to considerable profits or significant losses.
What Makes a Day Trader Successful?
These are the standard features you will find in successful day traders:
- Self-discipline: It will be you against the market, and the market will always have the advantage. Day traders need the self-discipline to get through the bad times and control themselves during the good ones.
- Risk control: To become a top trader, you’ll need to know the risks and the rewards of a position. If you want to make money as a day trader, you must know the risks better than anything else.
- Courage: Most people follow the trends and end up losing a lot of capital. Successful day traders don’t follow trends; they create them.
- Emotional control: One of the most common features of failed day traders is panic-selling. You will notice that the best day traders do not let a bad position upset them because they need to stay focused to avoid more losses. There is no room for emotions in day trading or trading in general.
- Patience: It will take time to see any significant earnings, but no time to see the losses. Day traders need to be patient and stay focused.
- Dedication: Trading requires a lot of time. Day traders spend time on both trading and developing the skills needed to become the best trader possible. If you give yourself the time to understand the markets and positions, you’ll get further in the day trading industry.
The Best Day Traders in the World
Although it is impossible to know the number of day traders worldwide, we know who the most successful day traders are. They combine all the skills and discipline that a day trader needs to be the best.
Here is a list of the best day traders in the world:
- Ross Cameron: Many consider him to be the wealthiest day trader in the world. Cameron was born in Vermont, and after significant losses on his investments, he decided to manage his fund personally. He is considered one of the pioneers of modern day-trading and is one of the most popular day traders globally.
- Sasha Edakov: One of the most popular day traders globally, Sasha Edakov has also become a best-selling author by writing books about day trading and the best strategies to succeed.
- Rayner Teo: He is one of the youngest day traders of the 1%. Teo teaches new traders the best ways of not losing money when day trading. His YouTube channel has over 170,000 subscribers, and his website receives almost 30,000 visits a day.
- Steven A. Cohen: He is the most influential trader in the world and the 35th richest person on earth. Cohen’s net worth is 8.3 billion dollars, and he is the director of SAC Capital Partners.
- Mark Minervini: He is known for making a 128% profit in his first year as a day trader. It is an almost impossible achievement that has solidified him as one of the world’s best day traders. He recommends new traders to keep an eye on trends before buying and not be seduced by the lowest prices.
- Geroge Soros: The man who bankrupted England’s bank is a legendary figure of the stock markets. George Soros is in the top 10 wealthiest people globally and has been trading for more than four decades.
- Bill Lipschutz: When he was a student, he turned 12,000 USD into 250,000 with 100 positions. Then, he lost everything and stopped trading for a while. After finishing his studies, he went back into day trading and generated 300 million USD for his employer’s bank.
Why Is Day Trading So Popular?
Day trading is so popular because many people see it as an easy way to make money fast. It is risky but highly rewarding. However, more than 90% of day traders will lose money instead of making profits.
Another factor is the rise of online platforms that make it easy for new traders to start day trading in the Forex.
There are over 10 million active traders in the world. Most of them perform their trades through online platforms, which is where day traders tend to operate.
Overall, day trading requires many abilities and skills that most people don’t consider before starting. This lack of understanding makes day trading a high-risk option for new traders, as only 1% of day traders will earn significant profits.
If you want to start day trading, we recommend studying the most successful day traders and their strategies. Understanding them and the market could help you become part of the 1%.