Most day traders flop. These researchers say one popular strategy generated 46% per-year returns.

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A new research paper says there's a day-trading strategy that works and can complement buy-and-hold

Day trading, for most people, is a disaster. One study of retail currency traders found 70% lose money every quarter on average, and lose it all within 12 months. Another, in Brazil, found 97% of equity futures traders who traded more than 300 days lost money.

They studied the first five minutes, from 2016 to 2023 — which had two bear markets and abnormal volatility — and examined the TQQQ TQQQ, +0.07%, an exchange-traded fund that aims to triple the daily move of the Nasdaq 100 index. The results: an annualized return of 46%, versus an annualized 15% gain for the QQQ QQQ, +0.01% over the same time period. They also say it produced returns uncorrelated with the broader market.

They also answered questions about the paper over Twitter, where one question was whether brokers would allow the necessary leverage for such a strategy to succeed. The buzz. Netflix shares NFLX, +0.29% weakened 1% as the streaming-service provider posted weaker subscriber numbers than hoped while announcing a crackdown on U.S. shared accounts. It’s also ending its DVD-by-mail business.

Fox FOX, -0.06% shares may see pressure as the broadcaster paid $787 million to settle a defamation lawsuit brought by Dominion Voting Systems as it still faces a lawsuit by voting technology company Smartmatic. Fox and News Corp., which owns MarketWatch, share common ownership.

 

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