Day Trading As A Career

There have been a ton of examples of people who started out day trading as a side income to becoming a day trader as there career mode.  Day trading does have its risk but it can be very lucrative at the same time.  Lets look at the Marty Trader scenario to see how a day trader makes not only profit but a living as a professional day trader.
At the start of the business day, Marty Trader selects 100 shares of Day-Trading Inc. He knows from watching the trends that Day-Trading is about to make a big move upward, and he is right, the stock gains at least a ½ point by noon of that day. As a day trader, Marty  wants to walk away with profit by close of business, so he sells off this upward moving stock and splits up the profits from the sale. Part of his profits goes into his day trader account to make sure that he will meet his minimum equity; the other part goes back into investing. He has had his eye on another stock that is set to make a nice upswing as well. Marty  is successful, because he is careful and because he knows how to read the stock signs.

If the amount of profit that Marty Trader makes for this trade is $100 (obviously an amount simply for this scenario) he would most likely use half as account cover capital, and half as re investment. Of course, no one in the day trading game is doing any investing with $50; again, this figure is simply for illustration. If he makes five similar trades for the business days, with equally similar results, he will have made $500 of profit. Keeping with that theme, trading five days a week would net Marty  $2500 of profit per week. (Commissions, overhead costs and other business expenses, realistically bringing the amount down to $2000 or less would reduce this figure.) This is still a nice bit of profit, considering that this is only one stock’s trade performance. Marty Trader probably handles quite a few more trades than that in a day’s time.

Considering that not every trade will make a profit, let’s say that Marty  handles ten stock trades per day, with the same profit margin as above. ($100) On the safe side, we will give Marty  a win percentage of say, 30%, which means that for his ten trades, he sees that profitability factor on three of them ($300).  Which will bring him to $1500 for the week, less the commissions and other expenses as mentioned above. Realistically, Marty  can see a profit of slightly less than $1000. But, Marty  is aggressive, so that amount will not satisfy him. He will hit the charts and study until he finds the right stocks that are about to trend upward. He will work until he gets his win percentage up near fifty percent or even higher.  Welcome to the wonderful world of day trading.

Day trading is a skill and like any skill it is important that you get as much education and information before you begin to jump into the world of stock trading.  For some who have that sixth sense that can pick the winner from the loser day trading can turn into a rewarding career.

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