I started day trading the stock market almost two years ago, I also started day trading forex a year ago. This is what i noticed about trying to make a living off day trading. Its simply not realistic to make a living day trading stocks or forex and ill tell you why. You ever wondered why 90 percent of day traders lose. Its because day traders are meant to lose, you simply cant expect to have a high win rate actively being in the market getting in and out of position every day. To realistic live off of day trading forex for the most part its simply not a sustainable practice. No matter what your “mentor” may tell or the YouTube guru you love to watch and learn from, your dreams of being that million day trader isn’t likely to come true. You may see a lot of people come on the seen with small account trying to tell you to over leverage your account and you can make $200 into a $2000 account. Don’t fall for the foolery this is most likely a sales tactic making a living day trading the forex market isn’t real and don’t let anyone convince you it is. If you live in America you wouldn’t be able to trade with a $200 account because legal leverage level on us soil are low 1:50 is the usual I believe you cant trade with a leverage higher then 1:100 on American soil. With that being said that a large investment for someone who doesn’t really know the market to start with using a broker that legal in the us. You’ll have to come with a couple grand to get your forex journey started and I would advise you to open a demo account somewhere first and head as many books as you can listen to financial books on YouTube and talk to people that actively trade the market never be scared to ask a question or google search. Now to tell you what you could possibly make in a day foreign exchange trading starting off with a $2000 account with a leverage of 1:50. You’ll likely only be able to micro lots which means that $100 a day is likely out the window. That also likely means flipping that account is out the window. Now I’m not saying its not possible to make money day trading forex it, What im saying is its not likely that the practice is sustainable. Now if you do your own research on the subject you’ll see I’m not lying to you. For all its worth if you’re going to day trade you might as well go to a casino because you’re likely gambling rather you know it or not. To sum it up not a sustainable practice to live off of.
Lets talk about the stock market. Now as appealing as day trading stocks sound Your less likely to make money doing this then selling your old shoes on the side of the street. Stocks are simply not meant to be day traded. You’ll have a better chance risking your money in the casino then day trading stocks especially if you’re coming in with a small account under $20,000. If you’re coming in the game with small buying power you’re already at a disadvantage don’t put yourself at more of a disadvantage trying to day trade a $500 account thinking you’re going to quit your job. That’s simply not realistic most if not all brokerage will limit your day trades to 3 a week, And if you go over that you’ll be deemed as a pattern day trader meaning you cant day trade for a while until you come out of it. To day trade the stock market you’ll probably need the 20 grand to really be able to make money. Plain and simply you’ll have to purchase a thousand shares of a stock to really make quick money off of it in the manner of day trading. The math of this is pretty simple you make $10 per .01 movement on the stock price. So if a stock moves ten cents ei. 12.00-12.10 you’ll make $100. That sounds awesome and easy right, Well first lets look at this in the perspective of the person that might tell you this is the way to change your life. That person likely realized you can make more money teaching people to day trade then day trading, which is likely true. Now with just a bit a research and a little math you can see how unsustainable this practice can be and if you need to live move money around and do your everyday things with your money in the market it wouldn’t be smart to be so reckless with your trading practices.
You’re probably wondering why I’m telling you this and how I was personally able to make money in these markets. To be honest I just don’t want to see people get fooled in to thinking some pipe dream is something to follow unless you can stand to lose the money you have in the market don’t be reckless with your capital. In the stock market I found consistency simply by doing my due diligence on every single asset i trade, Not being attached to a swing trade, simple math, patience, confidence, account management and creating a strategy that works for me. Someone taught me to always keep something free, as in you should always have free capital in your account you never know you may hear about something that you can get into. Don’t get scared when things are down and if you need to cut losses cut losses the money you lost can come back in other positions. Have portfolio diversity and look into thing that interest you. I know it can be hard to hind profitable stocks to trade some advice from me to you don’t follow the hype and go with things you like. One of my favorite swings trades I made was Nintendo. I made this trade a little over a year ago it a was a little $15 flip. Not much but i love Nintendo games and in that instance I was able to make a little change off something I like. you could do that although I wish I would have invested back then over traded but it is what it is. I’m still trying to get it right in the foreign exchange market, This skill isn’t a walk in the park to learn consistency is key. But its more to it then just that knowledge is required and a willingness to keep going and never give up. Its a reason why I’m saying this to you I’m changing up my foreign exchange strategy completely so I can come back here and help you guys out as much as possible. Right now swing trading the foreign exchange market is what I’m looking at. And of course a brokerage change be looking out for a YouTube channel with me trading the market live in the future join me on my journey to becoming a professional foreign exchange trader. Also learning options so I can give you guys advice on the subject.
In the mean time check out my crypto token on Mintme.com