If you’re wondering, “How do I become a profitable day trader?” you’re not alone. Although day trading can be highly profitable, it’s tricky to know where to start. Below, we explain how day trading works and how profitable day trading is. 

What Is Day Trading?

First, let’s make sure you’re clear on what day trading is – and what it’s not.  

A day trader buys and sells assets during the regular trading day. They capitalize on short-term price changes (or “swings”).  

Profit targets and day trading go hand-in-hand. The idea is to buy when prices are relatively low, and sell when prices jump. This enables day traders to make a profit in a short space of time.   

Day trading is not technically the same as investing. Although most day traders have long-term goals, you’re not buying assets to hold for any length of time. You’re focusing on moving assets quickly – sometimes only minutes, or hours, after buying them.

How Does Day Trading Work?

No matter whether you trade Forex or stocks, day trading follows a fairly similar pattern.  

• Most day traders start when stock markets open (say, 9.30 AM ET).  
• Traders study the market and assess any assets of interest. They’re looking for price swings and other related patterns. 
• They buy when they judge the timing is right, and sell based on how they expect the assets to behave.  
• Before the markets close, day traders usually sell the assets they purchase during the day. There are some exceptions in markets like Forex, though, when it might make sense to hold assets overnight. 

For day traders, no two days are ever the same. That’s what can make it so exhilarating – and rewarding.  

How to Become a Day Trader

If that’s how day trading works, how do you actually become a day trader? Well, everyone has a different point, but here’s briefly how you might get started. 

• Learn the basics of day trading. The more you know, the better your chances of hitting your day trading profit targets.  
• Think about your trading goals. Decide what markets you’d like to delve into, such as Forex, crypto,or stocks.  
• Decide how you’ll fund your trading. If you don’t have large sums of simulated capital to invest, a prop firm is a great choice. 
• Research prop firms. Look for firms with a professional web presence, positive online reviews, and clear trading rules. 
• Apply for a funded account with a prop firm. You’ll need to pass certain challenges to show you have the required skills to day trade successfully.  
• If you pass, you can get a funded account after undergoing some verification procedures.  
• Once verification is complete, you can start trading!    

Is Day Trading Profitable?

The short answer? Yes. However, nothing is guaranteed. Day trading can be profitable. But you need to know the right steps to take to maximize your chances of success.  

And although you can make day trading work for your schedule, you do need to put the time in.  

Before we look at how to make day trading profitable, here are some points to bear in mind.  

• You’re making multiple trades in a short space of time. As a result, day trading can be stressful. You need to think about whether this is the right style of trading for your personality.  
• Like anything else, day trading is a skill. It takes time to master. So, don’t rush. Instead, spend time really learning about trading strategies before you start.  
• Every trade carries some degree of risk. Although you should take steps to reduce risk, you should be comfortable accepting that not all trades pay off. You could lose profits – or money – as a result.   

Become a Profitable Day Trader

There’s no “one” best way to day trade. Successful day traders use a whole host of tools and strategies to make money. However, you can take steps to maximize your success. Let’s break them down below. 

1. Do Your Research

You need to know your market before you start trading. Otherwise, you risk making poor trades based on lack of market analysis. The better you understand your target market, the better you can predict swings, patterns, and trends.  

Better predictions lead to more profit! 

2. Be Prepared to Keep Learning

The best traders adapt to changing market conditions. You should regularly review your progress and look for ways you might improve.

You might also explore more than one market. That way, you have more options to explore depending on market conditions. For example, if your Forex trading profit per day is disappointing, you might try crypto instead. 

The more you know, the more markets you can explore, the better your chances of making money. 

3. Manage Risk

You need to take some risks to make trades, but they should be calculated. Decide what level of risk you’re comfortable with and stick to your own rules. Trading smarter, rather than trading without considering risk, will help you boost your performance.  

If you’re with a prop firm, they can help you set a risk profile. This will also help you trade responsibly (and hopefully, profitably).   

4. Choose the Right Partner 

Prop firms can support your investment goals by helping you grow and build experience. You become a team. They help you access the right markets, you make the right trades, and together, you can make money! They’ll also offer support which is invaluable when you’re trying to make profits in ever-shifting markets.  

5. Avoid Bad Trading Strategies

Timing is absolutely critical for day traders. But when you’re under the pressure of time constraints, it’s easy to get caught up on impulse buys. Avoid day trading strategies such as: 

• Chasing trends 
• “Revenge” trading 
• Pump and dump trading 
• High volume trades  

Avoiding bad trading strategies won’t guarantee you’ll make money. But it’ll help you maximize your potential.  

Start Your Day Trading Journey at Maven Trading

A prop firm can be a great choice for starting your day trading journey. We’re always looking to work with talented traders of all experience levels. Complete our challenges, and you can open a funded account – and start trading!  

With our help, you’ll gain the skills you need to make the most of day trading. And if you move up to a funded account, you can even trade without risking your own simulated capital.    

Are you ready to start day trading with a prop firm? Make your choice and try our challenges today!