This is the question everyone wants to know. Exactly, how much can day traders make and how to make a living day trading. While the easiest, and probably the truest answer is “it depends,” we are going to try and break it down for you a little more than that.
Veteran traders can make six figures very easily. An income of $100,000 is possible after trading only a few hours per day. But that comes after years and years of practice. And novice traders need to start with serious education in order to make it that far.
Veteran Trader Strategy
Part of making it that far means learning trading strategies that you can use to make real profits. One of those is a simple momentum day trading strategy that is taught at Warrior Trading. The strategy has the potential to squeeze 20-30% intraday. If you could find one of these momentum opportunities a day, you are in good shape. To do this you need to follow the rules of the game.
Rules of the Game
Every day trade you make carries risk and successful traders have to make split-second decisions everyday about whether the opportunity they see is worth the risk. The two questions a day trader must be able to answer if they want to make real money are “how much am I risking?” and “how much will I make?” If you can’t double your risk, it’s not worth the risk.
This is really the most fundamental and important rule. One piece of it that does not get mentioned enough is keeping your overhead low as a novice trader. The more you save early on, the more profit you make. Then you have the money to invest, in order to make more money.
Know How to Choose Stocks to Trade
Learning how to use stock scanners to find the stocks that have the potential to move 20-30% intraday is the key to success as a day trader. Too many traders waste valuable time and money chasing stocks that never have the potential to perform in a way that will make a day trader money.
Trade the Best Chart Patterns.
Trading the best chart pattern will find you the entry point to set you up for success. At Warrior Trading you can learn how to use momentum scanners, gapper, and high of the day strategies to find and exploit the best entry points to maximize profits. There is plenty to learn from educated traders out there. Check it out at https://stocktwits.com/DayTradeWarrior.