Can You Make a Living Day Trading?
Written by Hunter on December 8, 2023.You thrive on the excitement of the financial markets. You’re keen to build your trading skills. And you want to trade full-time.
Do these statements sound like you? Then you’re probably wondering if day trading can be a lucrative career path.
So, can day trading be profitable? Absolutely. Below, we explain how day trading works, and how to day trade for a living.
What Is Day Trading?
Let’s be clear about what day trading actually is.
Day trading means buying and selling various assets within a short space of time. This timeframe can be minutes or hours, but the transactions take place over the course of a single trading day. You can trade a wide variety of assets, you can even trade the news!
You may occasionally hold assets overnight. It depends on the market conditions. Typically, though, day traders have completed all transactions before markets close.
How Does Day Trading Work?
Day trading is very similar to regular trading. However, it has some unique features.
- Traders get online for markets opening (around 9.30 AM EST).
- The goal is to capitalize on short-term price swings. Traders want to buy when a price is relatively low and make a profit by selling when prices swing high.
- Rather than investing in long-term stock options, day traders make multiple trades during the day.
Day trading is exhilarating. No two days are the same.
Who Can Become a Day Trader?
Technically, anyone! You don’t need qualifications to become a day trader. Your raw abilities are enough. However, there are some basic skills you might want to develop before you start trading.
- Basic understanding of how trading markets, such as Forex, work.
- Knowledge of how to interpret stock charts and other trading patterns.
- Familiarity with common trading tools and tech platforms.
- Understanding of basic trading strategies and their pros and cons.
There’s no way around this: day trading is hard work. Especially if you plan on trying to make a living from day trading. While many traders thrive on the stress and pressure of quick trades, others find it daunting.
The key takeaway here? Think about your personality and trading goals. Day trading is not right for everyone, but if it suits your nature, it can be highly rewarding.
Can You Try Day Trading As a Career?
Yes. However, you might want to try day trading on for size before you commit to it as a career. Here are some suggestions for exploring day trading for yourself.
- Read about the different ways to invest money and trade assets. Make sure you fully understand the level of commitment involved before you try day trading.
- Decide how much risk you’re comfortable with. All trading comes with risk – there’s always a chance you’ll lose money. However, day trading often means working with volatile assets, so risk assessments are critical.
- Try to complete a prop firm challenge. If you’re successful, you’ll gain access to a funded account with simulated capital. You can learn day trading and recoup a percentage of the virtual profits if you’re successful!
Remember, successful day traders play the long game – even if they’re making short-term trades. Explore your options before deciding if day trading strategies interest you.
Can You Make a Living Day Trading?
There’s no guarantee that you’ll become a successful day trader. But the reality is that day traders can – and do – make a living from their skills.
Just remember, though, that day trading requires grit, perseverance, and talent. You’ll need patience to study price swings and execute your moves at just the right time. And it’ll take time to learn which trading strategies work best for you.
Still have questions about day trading? Here are some other points to consider about making a living from day trades.
How Much Does the Average Day Trader Make?
Every day trader is unique – that’s why we love working with them! That means there’s no single “average” amount for a day trader to make. Your income could vary depending on factors such as:
- Market volatility
- Time you can invest in the job
- Level of experience
As a very general ballpark figure, though, day trading could net you over $90,000 per year. Some day traders make six figures, while others make less.
What all day traders have in common, though, is the ability to make money from trading every day.
Making Day Trade a Full-Time Job
Can you actually make a living day trading full-time? We can’t emphasize this enough – the answer is yes! However, many day traders start out working part-time until they learn the tools of the trade.
You may feel more confident if you start gradually, with plans to work your way up to full-time day trading. This is a good strategy if you’re new to trading. Or, you might have other financial commitments and you don’t want to risk taking the leap just yet.
How Much Money Do I Need to Become a Day Trader?
Not as much as you might think. In fact, you can start day trading with less than $100.
At Maven Trading, we believe in making day trading accessible. We don’t want talented traders to lose their chance to shine just because they don’t have much capital! You can sign up for one of our challenge accounts for as little as $30. And if you complete the challenges, you get access to simulated funding so you can start your trading journey.
Can I Make a Living Day Trading for a Prop Firm?
The short answer is yes! Prop firms let you make trades without risking your own capital. You will have access to simulated funding. And, if you’re successful, you’ll receive a percentage of the virtual profits!
We’re happy to answer any questions you have about prop firm trading, so don’t hesitate to reach out to us.
Join Maven Trading
Are you looking to start day trading for a living? Look no further than Maven Trading. As a prop firm, we give you support – and access to vital tools – to hone your trading skills. We offer low spreads, fast payouts, and clear trading rules.
Simply complete our challenges or buy an instant funding account to get started! Make your choice today.
