00:00No, this is misleading if applied to investors broadly.
00:04The 90% figure applies specifically to day traders and short-term active traders,
00:09not long-term investors.
00:10Regulatory disclosures and academic studies consistently place day trader loss rates
00:16between 70% and 97%, while long-term passive investors holding diversified index funds
00:22historically see positive returns over 10-plus year periods.
00:26The S&P 500 has never had a negative 20-year rolling return in its modern history.
00:32Key distinction by strategy
00:341. Day traders, buying-slash-selling within the same day
00:38SEBI data on Indian equity intraday traders found more than 70% of individual intraday traders
00:45in the equity cash segment incurred losses in fiscal 2022-23.
00:50A Brazilian futures study found roughly 97% of day traders persisting for at least 300
00:56trading days lost money net of costs.
00:59U.S. regulated Forex-slash-CFD broker disclosures report 70-85% of customer accounts lose money
01:08in any given period.
01:102. Active-slash-frequent traders, weeks-to-months holding, underperform mainly due to fees,
01:16timing errors, and over-trading, academic consensus, Barber and Odeen-style studies,
01:22shows this group significantly lags market benchmarks but the lose-money framing is less
01:27absolute than for day trading.
01:293. Long-term passive investors, index funds, buy-and-hold
01:34This group is the opposite case.
01:36The majority build wealth over time because they aren't paying frequent transaction costs
01:41or trying to time entries-slash-exits.
01:43This distinction changes by context.
01:46Retail Forex and CFD traders show the highest loss rates, up to 97%, while retirement account
01:53investors in diversified funds show the lowest.
01:56Geography matters too.
01:58YesMA data across major regulated European brokers in 2024-2026 shows 74% to 89% of retail CFD accounts
02:09lose-money, similar to U.S. and Indian findings.
02:12But this specifically covers leveraged-slash-short-term products, not general stock ownership.
02:18Practical takeaway.
02:19If you're asking this to decide how to invest, avoid day trading and leveraged products,
02:24and default to long-term diversified holding, the 90% lose-money statistic is a warning about
02:30short-term trading, not a reason to avoid investing altogether.
02:34Finally, remember that everything we discussed today is for educational purposes only and does
02:40not constitute financial advice.
02:42Good luck to everyone and see you in the next video.