Can you become a successful day trader? After all, other day traders started out with just several thousand dollars in their accounts, only to triple those funds in as little as a few weeks of their active efforts. Seeing other day traders pull that off naturally makes other people more interested in becoming involved in that world. Though, is day trading really the ‘money maker’ it seems to be?
Making money in day tradingAccording to some day trading experts, day trading can ‘eventually morph into the perfect business. ’ It's mainly because the amount of capital (or invested funds) put into day trading has the potential to double after at least a month.
To provide an example from that expert, say you started off with the initial minimum deposit of $25,000. When you trade using that capital on a daily basis, you might gain the chance to earn profits of about 5 percent.
Earning about 5 percent of your capital in profits is, in this case, equal to earning about $1,250 for each profitable trade. So, each time you earn that amount, you'll be earning about $1,250 for each trade over the month you'd be day trading. According to the example, you will likely end up with over $108,000 after at least 31 days. That's pretty much quadrupling your capital in a short amount of time.
Examples like the aforementioned are a big reason why a lot of people immediately want to jump into day trading. There's a roadblock that stops people from getting very far, though.
Becoming successful in day trading
While the previous example represents an incredible opportunity to slowly build profits when day trading, it's also not achievable by most day traders.
When you think about it, it's true. Earning profits like the aforementioned is only attainable if the trader takes the time and effort to make that happen. It's the same for many types of financial trading, including day trading.
To get ‘good’ at day trading, a trader essentially needs to have:
- A good attitude.
- An understanding about how the market works.
- Access to the market and exchange.
- Patience and commitment to the practice.
Without those ‘traits, ’ it's hard to stay in the market as a day trader. Taking all of those traits – and more – into consideration is a part of an even bigger understanding about day trading.
The fact that being successful in day trading is more about treating day trading like a business.
You've probably heard or seen people mentioning that ‘running a business takes a lot of time, money and the work ethic to successfully put it off. ’ It's the same for day trading, though day trading does operate faster than that of a regular business. The market itself moves too fast and volatile for most traders to keep up.
Those who want to be successful have to exhibit the aforementioned traits and have the drive to maintain that for as long as they can. And, that's what it takes to be successful in day trading .