Trader's Questions

How Much Money Does a Day Trader Earn?

In this article you will understand, in detail, how much money a professional day trader earns.

However, before we get to the point, I would like to clarify some very common questions about the day trader profession and its winnings.

Let’s go, shall we?

Day Trader is NOT a Profession

yes, that’s what you heard and let me explain better.

Day trading is not a profession in the popularly known sense of this word, just as a doctor or lawyer who has class advice, is supervised and requires formal education and diploma.

There is no formal faculty to be a professional day trader and no diploma.

The day trader can qualify as a “professional” in the broader sense of definition, which is related as “one who dominates a craft”, see an excerpt on the definition of profession:

“As a general rule, professions require specialized and formal skills, which are usually acquired with a university or professional background. Crafts, however, consist of informal activities or whose learning consists of practice. In some cases, anyway, the boundary between the profession and the craft is diffuse.

(…) For someone to be considered a professional it is not necessary to have a university diploma. A professional is someone who carries out a certain activity most of the day(…)”

Excerpt taken from the conceito.de

Therefore, we consider someone a professional day trader when he dominates the craft of doing day trade and does so daily and much of his day, having day trading as his source of income.

Day Trader DOES NOT Have Salary

Of course, not being a formal profession but a craft that is learned, the day trader is a self-employed.

Your income will depend on your knowledge, your skills, your emotional control and your efficiency in trading in the financial markets.

If a day trader is good, and only if he is really good, he will make money!

And know, having efficiency and high profitability in the day trade is an extremely challenging task and a relatively very small percentage can make high profits and continuously in the long run.

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Knowing this, I will pass you a benchmark of a trader already experienced and who has reached the degree of consistent profitability.

Straight to The Point

I will tell you about the parameters of an experienced day trader who can call himself a true master of the craft, a professional.

The daily gain goals of a professional day trader vary widely, between R$1,000.00 to R$ 20,000.00/day and, in some cases “off the curve”, even higher values.

Yes, for those who achieve proficiency in this activity, the day trade is an excellent source of income.

However, do not fall into the deception, very common in every beginner, which is to make the following account:

“20 trading sessions x R$1,000.00 = R$20,000.00 per month… I’m going to get rich!”

That’s not how it works!

I can say that a good day trader on average 14 to 18 positive days in a total of 20/21 trading days in the month.

So obviously we should subtract the negative days that normally happen in the life of the day trader.

And also all the costs involved and the income tax on day trade operations.

Thus, a day trader with a daily goal of R$ 1,000.00, usually makes from R$ 6,000.00 to R$ 10,000.00 net at the end of the month.

And remember, who seeks to win R $ 1000.00 in a day is at risk of losing also R $ 1000,00 …

Therefore, how much a day trader can earn is limited to his ability to financially display the market (available capital), his experience and market conditions.

Markets also change a lot and there are situations of increased and decreased volatility that can significantly change the performance of a day trader.

Conclusion

A day trader can earn from R$ 5,000 to R$ 500,000.00 per month, depends a lot on his experience, available capital, risk appetite etc..

It is not like a formal profession, where there are salaries and formal qualification.

How much a day trader earns depends a lot on the day trader and the correct question you should ask yourself is:

“Howmuch can I earn as a day trader?”

I hope you helped,

Good studies and good trades!