Day trading can be a lucrative and interesting career, one that allows you to work from home, for yourself. The Covid-19 pandemic has even ramped up people’s interest. Yet if everyone could be successful as a day trader, everyone would be doing it. What does it take to make a living as a day trader? Is it even possible? well, some might think it’s not. However, that’s not actually what it is.
The truth is, there are a few qualities that successful day traders need to have. In this article, we are going to share exactly what it takes to make a living as a day trader. Without further due, let’s start the discussion.
What Does It Take to Make a Living As a Day Trader?
In this competitive world, building a career out of something crucial is not easy. You must be hard-working, dedicated and consistent enough to achieve something desirable. In this article, our goal is to help you understand the effort and dedication you need to build a career for living as a da trader. We will try to understand what does it take to make a living as a day trader. Let’s start with the investment, you need to start day trading.
Capital to Work with
It takes money to make money. While you can get started on a platform like Deriv.com with very small amounts of money, successful traders usually have at least $3000 in their trading accounts to start doing the job full time. More is better.
If you start with much smaller amounts you simply will not, for some time, generate enough revenue to even think about living on.
The Willingness to Get an Education
The trading industry is changing every moment. It’s your knowledge is what does it take to make a living as a day trader. The best traders are extensively educated in the art of day trading. They’ve watched videos, they’ve read books, they’ve sought out every guide and blog post they can find.
They study the markets. They learn how to interpret data. They learn about the types of trades they’re interested in making: Forex, crypto, binary options, stocks, commodities. There are entire worlds of options out there, but you have to be willing to invest the time into learning about them and how to profit from them.
They’re willing to use practice trades like the ones offered by IQ Broker to test, develop, and learn from their strategy. They start making real trades only when they have seen their practice trades start going well. Even then, they realize there might be a learning curve.
A Willingness to Learn from Mistakes
Successful day traders carefully document why they make the moves they make, and what the outcome of these moves is. As they do, they start to refine the strategy that works best for them.
They have the patience to go through this ramp-up period where they may be making little-to-no money. They are meticulous about refining their understanding of trading and using it to become stronger than ever.
Eventually, you’ll learn what you want to trade, how often you want to trade, when you want to trade, and how you want to trade.
Day trading comes with losses as well as wins. If every loss is going to make you angry, stressed out, or impulsive then you’re better off trying a different career. If you want to understand what does it take to make a living as a day trader, you must understand the trading culture or the environment of the industry first. Because this industry is so volatile that you may lose everything if you made a simple mistake in some cases.
If you take every loss as an opportunity to refine your strategy then you have the right mindset to succeed. The day traders who lose out are the ones who tend to rely on “gut feelings” and who don’t learn from their mistakes.
Is success possible?
Yes. Many day traders make $100 a day or more. It is certainly possible to make a full-time living. If you feel you have the time, temperament, and talent to get started, then open up a practice account and start your research. You might just change your life for the better!
We are at the end of our discussion here. A trading business is not a simple business that you can do only with money. With investment, you also need analytical knowledge to succeed. Every moment you need to be conscious about the events that cause sudden changes to the price of the underlying asset you are trading. We hope now you know what does it take to make a living as a day trader.