How Much Can You Make as a Day Trader?

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Have you ever wondered how much cash you can make as a day trader? There are plenty of people out there who rely on investments in stocks, forex, and security as their full-time source of income. That means there must be a way to ensure that you get a reasonably consistent amount of cash from your investments, right?

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Well, in simple terms, there’s no day trading for dummies guide that can tell you exactly how much you’re going to make each month as long as you follow a particular strategy and avoid any losses that are too significant. The truth is that there is a vast range of incomes out there, and never any guarantee that you’re going to make any money at all. Some people barely make a living or even lose cash when they’re exploring the markets. Others make hundreds of thousands of dollars every year.

How to Calculate your Potential Income
If you’re keen to find out how much you could be making, then the easiest way to get started is to practice your strategy in a paper or demo account. These accounts will allow you to use the same amount of “pretend” money as you would in real life. After a few months, you’ll start to get an insight into whether day trading is a viable solution for you.

In most circles, it’s recommended that newer investors risk only around 1 or 2 percent of their account on each trade. This means that losing trades won’t have a huge impact on your account balance. However, it also means that you won’t be able to make a considerable amount straight away either. Another point to keep in mind is that most of the time, the more capital you have to work with, the lower your percentage return will be. It’s easier to make astronomical returns if you only have a small amount of cash, to begin with.

For additional research, you can also spend some time reading blogs and listening to podcasts from other traders who have taken similar approaches to earning money in the past. Remember, you won’t get the exact same results as these people, but you will get an idea of the kind of money that you can make in the right circumstances.

It’s Not a Get Rich Quick Scheme
Ultimately, it’s always important to be realistic with your trading strategy. You should expect to put at least a year or so of income into your trades before you begin to see any consistency in your profits. You may find that you start to make money a lot sooner than this, but you also lose money regularly too, to begin with.

Additionally, keep in mind that day trading requires an initial investment to get you started. Aside from the cash you’ll be spending on your initial accounts, you’ll also need a good computer that you can use to track your accounts and a trading platform that you can rely on for consistent access to important data feeds. Remember, although day-trading might be a fast-paced world, that doesn’t always mean that you’ll get results immediately.

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How Much Can You Make as a Day Trader?
Description
Have you ever wondered how much cash you can make as a day trader? There are plenty of people out there who rely on investments in stocks, forex, and security as their full-time source of income.

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