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Forget day trading: Get rich with these top ASX shares

When it comes to the share market there are two ways you can take part. You can invest or you can trade.

While day trading can generate great returns, it is worth remembering that statistically it creates far more losers than winners.

According to Cory Michael from Vantage Point Trading, the majority of people that day trade lose money. And those that succeed, only a very small portion are winning enough to make it worthwhile.

He told Forbes: “The success rate for day traders is estimated to be around only 10%, so …90% are losing money. Only 1% of [day] traders really make money.”

In light of this, I think readers interested in building their wealth should forget day trading and focus on investing with a long term view.

With that in mind, here are three ASX shares that I believe investors should consider:

Appen Ltd (ASX: APX)

Appen is a leading developer of high-quality, human annotated datasets for the machine learning and artificial intelligence markets. Thanks to the explosive growth of these markets, I expect demand for its services to continue to grow in the coming years and support strong earnings growth. This could make it a great buy and hold option.

Nearmap Ltd (ASX: NEA)

Nearmap is a leading aerial imagery technology and location data company. While FY 2020 looks set to be a tricky year for the company, I believe its long term outlook remains extremely positive. This year the company is aiming to deliver annualised contract value of $102 million to $110 million. This is only a fraction of the global aerial imagery market which is estimated to be worth US$10.1 billion in 2020.

Xero Limited (ASX: XRO)

A final option to consider is Xero. It is a leading cloud-based business and accounting software provider. I think it is a great option due to the quality of its product and the continued shift to online accounting. At the end of FY 2020 the company had ~2.3 million subscribers. This is still only a small portion of a massive global market opportunity. 

These 3 stocks could be the next big movers in 2020

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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