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Bridge over ocean
1 November 2003 Financial Analysts Journal Volume 59, Issue 6

The Profitability of Day Traders

  1. Douglas J. Jordan
  2. J. David Diltz

We used two distinct methodologies to examine the profitability of a sample of U.S. day traders. The results show that about twice as many day traders lose money as make money. Approximately 20 percent of sample day traders were more than marginally profitable. We found evidence that day-trader profitability is related to movements in the Nasdaq Composite Index.

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