Is day trading worth it? What's the truth about day trading? I've been skeptical of claims made by many advertising day trading courses. I attempted to keep an open mind as I reviewed recent research literature on the subject.

Even if there are opportunities, regardless of the market, I hope I made it clear this is a very high risk activity. While academic research doesn't always line up perfectly with reality, it seems clear that a consistently profitable trader is an outlier.

Studies Included:

The cross-section of speculator skill: Evidence from day trading, Barber et al
https://faculty.haas.berkeley.edu/ode...

Day Trading for a Living?, Chague et al
https://pdfs.semanticscholar.org/8ea6...

Did Trading Bots Resurrect the CAPM?, Andreas Park
https://papers.ssrn.com/sol3/papers.c...


Momentum Focused Studies:

Highs and Lows: A Behavioral and Technical Analysis, Mizrach/Weerts
https://www.econstor.eu/obitstream/10...

The predictive power of price returns, Caginalp/Laurent
https://www.pitt.edu/~caginalp/Paper6...

Study of Predictive Power of Moving Averages as a Tool of Technical Analysis, Bahl
https://papers.ssrn.com/sol3/papers.c...

Factor Momentum and the Momentum Factor, Ehsani/Linnainmaa
https://papers.ssrn.com/sol3/papers.c...

Short-Term Momentum, Medhat/Schmeling
https://papers.ssrn.com/sol3/papers.c...


Studies on less efficient markets:

Momentum and Contrarian Effects in the Ukrainian Stock Market: Case of Daily Overreactions, Plastun et al
https://www.researchgate.net/publicat...

Momentum Effects in the Cryptocurrency Market after One-Day Abnormal Returns, Caporale/Plastun
https://ideas.repec.org/p/ces/ceswps/...

Technical Analysis and Cryptocurrencies, Hudson/Urquhart
https://papers.ssrn.com/sol3/papers.c...

Technical Trading: Is it Still Beating the Foreign Exchange Market?, Hsu et al.
https://papers.ssrn.com/sol3/papers.c...

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The information discussed on this channel is for educational and entertainment purposes only. It should not be considered advice. Please do your own research and I encourage you to seek professional tax, legal, and financial advisors, before taking any actions or making decisions.

#daytrading #stockmarket #speculation