How Much Money Can You Make as a Day Trader?
Whether it's for a career-building, lifestyle-change, or adventure-seeking, the question of how much money a Day Trader can make ineluctably arises. Because the vast minority of Day Traders does not disclose their proceeds, it can be troublesome to respond with any precision. Studies' and statistics' findings are contradictive at best and obscure at worst.Though a myriad of studies and surveys has been consistently conducted throughout the world, because there is no reliable source from where anyone could be mining supportive data, to best answer this question one should say, 'who knows?'. Some of the statistics' suggest that results rely on brokerage data but you should be skeptical whether brokers' data on clientele's income and profit is subject of being disclosed to third party. Would individual investors, be they losers or winners of the stock market reveal their proceeds for the sake of providing data for statistics?
HOW MUCH CAN YOU EARN
There are only a few alleged facts in this game which also may qualify for just a ballpark about what proportion of Day Traders finds Intraday Trading profitable. That said, more than 97% of day traders lose money over time and from those ones who accomplished less than 1% are profitable. Taking into consideration the gazillions of websites offering Day Trade stock ideas, recommendations, stock scanners, stock sentiment analysis and Day Trading platform specifically for Day Traders, does this sound realistic? Would the companies behind these stock investment tools and platforms be completely unprofitable, or were they formed to service pointlessly a hundreds of thousands incompetent and inherently unrewarding Day Traders?
There are two different groups of Day Traders. Some of them trade independently as an individual, whereas others work for a hedge fund or financial institute. Professional Day Traders hired by firms typically don't earn a fixed wage but their salary is still supposed to be incorporated in the statistical data. Does reasonable base of any sort for comprehensive statistics exist then?
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In tandem with the looming recession Day Trading frenzy - as an alternative to jobs - entered during Covid-19. Without a doubt, Day Trading is challenging for most of the investors, and a not-insignificant number of day Trading Tips thrown by a multitude of websites are a kind of hoax, a select few investors still may exercise Intraday Trading successfully for over a long period of time.
The unexpected proliferation of artificial intelligence-based stock trading also enticed a large number of novice investors that make big bets on regular daily basis, on stocks recommended by AI in belief of the power of infallible 'machine learning' technology. Their achievements and success rate is also immeasurable either the up- or downside.
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For everyday persons considering Day Trading for a living, it's imperative to understand advantages as well as the most common pitfalls to balance profit and risk factor, because the amount of money they can earn as a Day Trader is majorly impacted by their risk management and Day Trading Strategy.
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» First and foremost profitability largely depends on the risk management strategies, trading technique, and the amount of trading capital used by the Day Trader.
» Another influential factor whether they work independently, or trade for a hedge fund or financial institute as an employee. While Day traders working for a firm in general earn fixed wage, individual Intraday Traders bears the full responsibility for the profit, loss, commissions and fees, meaning their income depends on their net profits.
» One of the most imperative factors when trying to give a ballpark about Day traders' earnings is the ratio of profitable and unprofitable Day Traders. Studies have indicated, only less than 1% of Day Traders are consistently profitable in the long term. Let us reiterate these estimates should be taken with a grain of salt. This ratio can be even lower or far higher; no one can find it out without the opportunity of amassing relevant information on Day Traders' real income.
» It's controversial how many percentage of Day Traders aim to earn of their account balance daily. Estimates come across 0-8…2.5%. On a side note, higher risk might involve higher returns but Day Traders who allow more room for risk have a higher potential to burn down their money to the last dollar.
Day Traders trade in a high-risk market, where they often can watch as all their money goes down the drain to the last hard-earned dollar therefore stock markets are highly regulated with numerous requirements pertaining to the trades, stocks and fundamentals. For a pattern Day Trader who earns his or her money by buying and selling stocks in one trading day, this is where Pattern Day Trading Rule comes to play. As an Intraday Trader, you need to maintain a minimum of $25,000 balance in your margin account as Financial Industry Regulatory Authority (FINRA) mandates it.
DAYTRADING AND PROFIT
Bottom Line
Whether it's purely for the money, job-change, adventure-appetite, or the challenge of it, the question of How Much Money An Intraday Trader Can Earn, unequivocally pops up to everyone's mind. If you were trying to give a ballpark figure without palpable results of widespread researches - that most likely never will be available - you would mislead yourself. Without a doubt, both the success rate and the Average Profit of Day Traders' they make on their ultra short-term investments vary radically on multitude of factors. While some of them tend to lose their capital, others exploit theirs to generate an enormous amount of income. Day Traders' prosperousness is heavily impacted by their risk management and stock trading strategy. The more inclusive trading technique they manage to elaborate, the less they are exposed to the perils caused by market volatility, sudden trend changes and freshly released stock market news or unexpectedly emerging stock catalysts.Individuals, bloggers, and self-styled stock market gurus on social media every now and then tout the huge profits they produced from large Day Trade bets they traded on speculatively. This might sound tempting for inexperienced prime-time investors that can easily fall prey to these high-sounding brags since making a fortune in term of couple hours seems to be uncomplicated and hassle free. It may happen once or twice but to remain consistently profitable in the long run as a Day Trader is a hard nut to crack, and as opposed to boasters' delusory statements novice Day Traders should pay close attention to the words of caution about risks inherent to this form of speculation.
DAY TRADING CAN YIELD $$$
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