How much does an average day trader make? This is a popular question that everybody needs answered. But unfortunately, getting a solid answer to this question is almost impossible, as a majority of day traders never disclose their actual profits to the general public. The results also vary from trader to trader because of how much risk they’re milling to take, the loss prevention methods they use, and the amount of knowledge they have about their stocks.
While the average profits of day traders aren’t easy to calculate, one thing that we can be sure of is that losing your money in this business is pretty easy.
What Day Traders Do?
Day traders basically try to benefit from the small forex market price changes. They buy some financial instruments, hold them for a while, and then sell them within the same day when their price goes up. Day traders try to buy and sell stocks within the same day, with an intention of making profits fro. The slight market changes.
Both beginner and expert day traders can use stop loss orders to limit their financial loss per trade. Playing safely and cautiously is the key to being a successful day trader. Also, never risk more than 1% to 2% of your total account balance, as this will limit your loss.
Getting Started in Day Trading
Before starting day trading, remember that trading is different, and way riskier as compared to investing in stocks. Any investor can buy a certain amount of shares of a company, and can hold them for months, waiting for them to appreciate in value. This isn’t the case with day trading. Some rules require you to maintain a minimum balance in your day trading account also, since day trading requires a lot of focus, you’ll have to allocate much of your daily time to this new hobby/ business. You follow Rob Booker to know more about this lucrative business.