The results of this year's Annual Day Trader Pulse Survey have been eagerly anticipated.  The pandemic and ensuing inflationary environment have increased market volatility and seemingly put an end to the 'buy on the dip' approach.

So the question on everybody’s lips was had the pandemic changed Day Trading behavior?  Were people still trading?  Were they still making money?  What were the key challenges that they were facing and how do they view their trading prospects for the future? 

Well the results are now in and it shows that global Day Traders are a determined, resilient bunch. 

Day Traders are still very active in the markets.  Over 60% of Day Traders are trading several times per day with 24% of them quoting that they have traded more frequently in the previous 12 months.  It seems that during the pandemic many Day Traders have dedicated additional time to focus on improving their trading skills. 

In terms of account size, Day Traders are serious about making money.  30% of them have a trading account of over $20,000 and two thirds of them have an account of over $5,000.

Most Day Traders surveyed traded the US Futures markets, with only 14% trading Forex.  It’s clear that the CME launched micro e-minis have proven to be very popular with Day Traders due to their lower price point which reduces risk and increases trading flexibility.

When asked how last year’s trading compared with the previous year 30% said that it was easier to make money due to the increased market volatility.  While 34% thought it was more difficult to make money because the stock market dynamics had changed and it was not possible to just ‘buy on the dip’ anymore.

But are they making money?  Well 20% of Day Traders are making great returns of over 10% per year and over a third of total Day Traders are making in excess of 5% a year so that’s good news.  On the downside 57% say they are either losing money or only just breaking even.

Day Traders clearly see the value in continuing their learning and education.  85% of them invested in training, tools or systems last year, the majority of those spending up to $5,000 with 10% spending over $5,000.  This is the area that always generates the most feedback comments and this year was no different.  The good news is that 38% of those surveyed thought that their trading had improved as a result of the investment.  Whereas 36% weren’t yet sure if it had worked and an unhappy 26% said that their trading hadn’t improved and that the money was wasted.  Day Traders are clearly frustrated with the quality of some of the offerings out there and it’s clear they’re happy to invest money if it helps them improve their trading.  Areas where they want most help and support were highlighted as Managing Emotions while trading along with identifying trade entry and exit points.  Most know that they won’t master trading overnight but they’re willing to put in the hard work for the perceived payoff.  So when they receive products/systems/training that don’t work it’s frustrating and frankly a waste of their time.

Brokers received positive feedback, mainly scoring 4 or 5 out of 5.  The only area highlighted for improvement was a reduction in commission fees and better spreads.

The desire to improve trading performance remains strong with 68% of Day Traders looking to invest in training, tools or systems this coming year.   Interestingly 80% of Day Traders said they were interested in autotrading solutions to help them better manage their emotions and entry/exit points.

On the whole it’s been a good year for Day Traders and they’re feeling positive, with 72% feeling confident about making money this coming year.  They have ridden this pandemic market well and are looking forward to future returns.

If you're interested in improving your trading or autotrading solutions then come talk to us, we will help.