Making a Living Day Trading
To start with, let’s explain what does day trading mean. Day trading, as the name implies, is a specific type of trading with one or more security within the same trading day in order to generate profit. This makes the idea of day trading seem similar to investing for some, but you should note that there are some major differences between these two.
One of the most significant differences among them is the time period. Investors usually buy and hold on to their securities for a long time, sometimes for several years and decades, while day traders focus on the short-term trends of the security prices, such as one trading day. Day traders often take advantage of even shorter-term fluctuations on a daily basis, which might include minutes and even seconds. This makes day trading a bit riskier, but far more profitable at the same time, compared to investing. It’s important to note, that unlike investing, day training is more like a daily job.
Is It Possible to Earn a Living Day Trading?
Even though day trader has a chance to buy and sell various stocks, currency and commodities, the latter one is infrequent, compared to the other two. So, the most commonly traded assets for a day trader are stocks and currencies. Stocks, however, are more reliable, compared to the others.
There are certain limitations regarding the balance on the trading account. The least average amount for trading equals to $25,000 in the United States for US based brokers, but it is recommended to have a larger account in order to increase your performance on the market. Several calculation and assumptions suggest to start with an account of $30,000 with a US broker. Assuming you have a pre-defined strategy, these calculations show there is a chance of getting average gross monthly profit from $3,000 to $5,000 for the least desirable outcomes. You can see the exact calculation here and there is another article about this topic here. In fact, expert traders earn an average of $25,000 a month or even more. Meir Barak is one of the most successful and consistent traders, who always shares his results on his youtube channel. Some other success stories shared by Will Karaman, Matt Diamond and others. The success of these day traders mostly depends on the strategies they choose.
Can You Make a Living Day Trading?
In order to start making a living day trading, there are some essential factors worth noting. First of all, day traders should always try to use the fastest internet connection speed they can, as network speed and zero latency can play a vital role in the day trading process. Secondly, some of the day traders do sometimes use multiple sources for visualizing the trends.
After setting everything up, it is important to start structuring a specific learning schedule and structure. Day trading strategies are mainly based on technical stock analysis, which includes analyzing charts and data in order to determine certain patterns in trend lines and candlesticks, deduce price movements of the stocks and define the volumes of the trade. Major strategies include candlestick pattern analysis, swing trading, arbitrage and analyzing trend lines. Day traders also use support and resistance, volatility, bollinger bands, etc.
Watching other traders is another crucial aspect of day trading, especially for beginners, who lack the expertise, knowledge and experience in trading. Remember, day trading is not the same as investing. Not everyone can become a day trader, as trading on a daily basis requires certain skills, unlike investing. Practice is a good way of understanding whether or not can you become a day trader.
Tradent Education Plan Offers
Tradenet is a trading education firm that offers basic and advanced online trading courses, which can be combined in the world-renowned Mentorship Program. Basic courses are a great choice for beginners, as no knowledge or experience is needed to start the course. Experienced traders can use advanced courses in order to become better traders. The course provides participants with free live trading chat room, which is the main advantage of Tradenet. The basic program costs $500 and comes with basic education, a much more sophisticated live trading room access and an eligibility to apply for $14,000 trading account, provided by a third party company. This plan comes with a 14-day money-back guarantee. Other than the Basic Intro Program, Tradenet offers a STUDENT Program at $3,000, an EXPERT Program at $6,000 and a PRO Program at $9,000.