How much money can I make as a day trader?Industry Leader Answer
Trading is more about managing risk and protecting capital than about making money. One makes money as a result of keeping risk low and protecting capital. How much money can one make depends on how many opportunities a trader can find and capitalise on. If one uses software, one can find and capitalise on more opportunities than if one trades manually.
Hypothetically, if one has £100,000 in their trading account, one keeps the risk of every trade to 1% of their account, and gets 52% of their trades right, they can make £4000 a month on very low risk. That is 4% a month or 48% a year.
Real life is different. Very few people have £100,000 in their trading account. Most people have £5,000 to £10,000 in their trading account. They can make between £500 to £1000 a month at around 20% risk. This amount will grow compounded. If you’re interested in learning more about trading, why not consider an online trading course?Answered on 12 Sep 2019.