Can you make a lot of money day trading?
One of my old childhood friends has decided to be a day trader. Can he make a lot of money. It’s just him and his computer.
- 2 months ago
It largely depends on the system(s) he employs and how well he tracks his trades and monitors opportunities to trade back. Realistically, he might not earn much until he figures out something that works.
- 2 months ago
it's probably the hardest way to invest you probably wanna start with long term investments.
- kswck2Lv 72 months ago
Some do, but the vast majority do not.
- The Old GuyLv 62 months ago
For year I managed a broker/dealer whose primary interest was in trading.
All my traders were profitable, trading commodities, fixed incomes, listed equities, NASDQ listings, and options...
However, all the traders had years of experience, trainees and other newbies could find a money maker if you'd hand it to them..
Like any thing else one does in life, to be successful one must know what they're doing, why they're doing it, how to do it and understand the rules & regulations that govern what you're doing.
To be profitable, a trader needs more than their computer. You want to be a trader start by building and writing a written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. Always use stops either to protect you on the down side or to lock in profits on the up side. Never trade on emotions, when emotions get involved walk away. Don’t try to out-smart the market, you’ll loose but if you always take what the market is willing to give you, you’ll be successful. Other words, you don’t trade against the trend since the market is always right. And NEVER trade on emotions, once you let emotions in your trades you will loose
Also you need A written money management program. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested. Never go into a trade without knowing when and where you are going to get out of it. Never let a loss on a trade get greater than 8%-10%, always take you loss and walk away - don't loose more than you need to and don't be afraid to take the loss. Remember you never can get hurt taking a profit. Never average down, but you can average up.
Before you begin to trade you need to have sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you can trade and/or invest. Margin can be used but only with restraints, never let the account wall below 45% equity. Unless you fully understand margins you should not use it.
And finally you need a full and complete understanding of the rules & regulations of the industry.Source(s): from The Street
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- Anonymous2 months ago
Yes, he can also lose his shirt!
- The TaxpayerLv 72 months ago
Not usually...........no such thing as get rich quick.
- JudyLv 72 months ago
If he's real good at it and real lucky
- MichaelLv 72 months ago
For 99.999% of the people who ask this question on some random internet forum, the answer is no.
- D.E.B.S.Lv 72 months ago
He can make a lot of money. He can also lose a lot of money. There are very few people who are skilled and lucky enough in the long run to consistently do well. And, yes, luck is a big factor in it maybe just as much as knowledge and skill.
- Wayne ZLv 72 months ago
However, he can also lose a lot of money.
From a Forbes article:“The success rate for day traders is estimated to be around only 10%, so … 90% are losing money.”