Read time: ≈ 11 min • Last updated: December 4, 2025 • Live stats & screenshots
2025 Update: UC Berkeley study shows 83 % of day-traders quit within 3 years—and only 3 % earn > minimum wage. I was nearly one of them until I built the 7-rule system below. It turned my P/L red → green in 2022 and keeps me profitable even during the Oct-25 crash.
1. The Brutal Numbers (UC Berkeley 2025)
Day-Trader Survival Study (2022-2025)
- 83 % quit within 3 years
- Only 3 % earn > local minimum wage
- Median lifetime loss: $12,400
- My first-year loss: $8,700 (screenshot below)
2. Why Most Lose – 5 Psychological Traps
- Revenge trading – double down after a loss
- FOMO entry – buy green candles only
- No stop-loss – hope is not a strategy
- Over-leverage – 10× = 10× faster ruin
- Confirmation bias – ignore red flags
3. Rule 1 – Risk <1 % per Trade
With a $10 k account, I risk max $100 per trade. That means 10 losers in a row = only 10 % draw-down. I calculate position size automatically in TradingView—script link below.
4. Rule 2 – Set Stop-Loss Before Entry
I place the stop before I hit buy. No exceptions. My default is ATR(14) × 1.5 below entry; average $BTC move = 2.8 %, so my stop sits ~4.2 % away.
5. Rule 3 – Trade With the Trend (EMA-200)
Simple filter: if price > EMA-200 on 4 h, only longs; below, only shorts. In 2024 this rule alone cut my losing trades by 31 %.
6. Rule 4 – Journal Every Trade (Notion Template)
I log entry, exit, setup, emotion (1-5), screenshot. Review every Sunday. Biggest insight: 72 % of my revenge trades happen after 8 p.m.—so I now shut the platform at 7:30 p.m.
7. Rule 5 – Cap Daily Losses at 3 %
Hit 3 % down on the day? Platform locks me out until 6 a.m. next day. I coded this in TradingView's alert webhook—link below.
8. Rule 6 – Avoid Weekend Gaps – Close Friday
Crypto gaps < 3 % usually, but forex and stocks can gap 8 %. I flat-line all leveraged positions Friday 3:55 p.m. ET—saved me $1 400 in Jan-25 Saudi oil headline.
9. Rule 7 – Take Profits at 2× Risk
Risk $100? I scale out 50 % at +$200, move stop to breakeven. Free roll, emotion gone. Win rate dropped from 58 % to 51 %, but expectancy doubled.
10. My Free TradingView Template
Includes ATR stop, position-size calculator, 3 % daily loss lock. Import link:
11. FAQ – Can I Still Day-Trade Crypto?
No, but 24/7 markets punish over-trading. Use rule 5 (daily loss cap) to survive.
I started with $5 k. Risk 1 % = $50 per trade—enough to cover fees and learning curve.
Most grid bots die in volatility. I use alerts, not bots—keeps me in control.
12. Conclusion – From 83 % Loser to 3 % Winner
I still lose trades—just not enough to blow up. Follow the 7 rules, journal every Sunday, and you'll join the 3 % who actually make minimum wage or better.
Trade less, risk less, live more.
Trading is risky. Past performance does not guarantee future results. Never risk more than you can afford to lose.