Attention Robinhood power users: Most day traders lose money

Attention Robinhood power users: Most day traders lose money (cnbc.com)

Day traders have terrible track records.

Academics who study stock pickers have long observed that the vast majority of professional money managers – about 85% – underperform their benchmarks over a multiyear period.

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Now those professionals are turning their sights on retail day traders, warning that the same poor results apply to them as well.

“I don’t confuse day traders with serious investors,” Princeton professor Burton Malkiel, author of “A Random Walk Down Wall Street,” wrote in a blog for Wealthfront, where he is chief investment officer.  “Serious investing involves broad diversification, rebalancing, active tax management, avoiding market timing, staying the course, and the use of investment instruments such as ETFs, with rock bottom fees.  Don’t be misled with false claims of easy profits from day trading.”