Make A Living Day Trading

Day trading is the act of buying and selling securities, such as stocks, options, currencies, Forex and commodities. It is difficult to determine how well one can do while trading, as it is all dependable on a few different factors that vary from person to person. The earning potential of this type of job varies exponentially, thanks to the market, as well as the amount of time and money one can invest in their job. In order to get started, first one must check their bank accounts and life savings.

Beginning with less than $50,000 can be risky, as usually it requires that one starts with 25k in order to make trades. However, it is also important to consider monthly expenses, as well as emergency funds to maintain one’s living situation. For many people who start day trading crash and burn, while many still succeed. There are even people who manage to earn big time off their trades every day! This is the type of work that is most satisfying on days in which one makes money, and is horrible when money is lost.

How much do I need to start trading?

When one begins trading, they must first look at their current finances. This is a great way to determine if one should day trade for themselves, or for a company or prop firm. To best break it down, consider first that many online trading companies require that one begins with a minimum 25,000 USD in their accounts to day trade. However, if one were to begin with a mere $50,000 total, they would only have $25,000 to risk when buying and selling stocks. Starting with $100,000 or $250,000, there is a lot more wriggle room, which raises the earning potential greatly.

How to decide where to start?

There are many companies, such as Shiznit Stocks, that hire people on as day traders for them. These jobs can be great for some, as there are many benefits, as well as downsides, to working for a company. There is, of course, a base salary. However, the primary amount of income will be made from any profits off trades. One must also be active a fair amount. The most appealing thing, for a lot of traders, is the lack of risk associated with finding a company to work for. The company’s money is what funds the trades, rather than the individual doing the buying and selling.  That’s where the downside comes in, of course. The employee on average only receives 20% of the profit. With a prop firm, there is more risk involved. These firms often require the employee to invest their own capital in order to trade for them. The amount of profit received raises to half the profit, but there is no salary to supplement the income.

Finally, day trading solo, rather than for any companies, grants the trader full profit. It is also the trader’s capital. On average, they can make anywhere from 20% to 100% of their money spent on trading.

What should I trade in?

There are a variety of markets to choose from, as a trader. From the stock market to commodities, such as gas or gold, the possibilities are endless. Forex trading is the buying and selling of currencies from different countries. The stock exchange is a larger venture, as it is essentially buying a portion of the company. The price of these stocks, or shares, in the company fluctuates depending on how well the company is doing. There are also penny stocks which are lower priced shares, but knowing the best penny stocks can be very difficult. Many traders buy and then sell these at their peaks. Commodities can be bought and sold as well! There are four basic commodities, which are energy, metals, livestock and agriculture. This is one of the most different forms of investment, as it is often sold differently than stocks are. Things like population growth affect commodity prices.

Choosing a style of trading

The style in which a trader operates their exchanges is merely a matter of choice. Short term trading, for instance, are positions that are held for a few minutes at the most before they are sold to another. This is a way that many, such as supertrades, make their profit best, as they are earning money regularly with very little risk. There are also long term position traders, who hold a position for a day before selling. While it may be recommended to stick to a single style, many choose to interchange depending on how things seem to be going. Similar to style, there are also types of trades to choose from. Some choose to buy stock only if the price is on the ride, this is considered trend trading. There are also counter-trend traders, who make exchanges if the price moves up, in order to sell at a peak price. It can be iffy operating that way, as if the price continues to rise, they may feel they should have sold later on to make a higher profit. Finally, there are ranging traders, who veer between the former two types; they tend to work best when the market is moving sideways.

Choosing to become a day trader can be risky business. However, it is possible to make a comfortable living working this way. The potential earnings are dependent on a few factors, such as the market one chooses to trade in, how much one starts out with and the amount of time they invest in learning and educating themselves on day trading. Of course, patience and discipline come into play, as well as the ability to control oneself from rash decisions.