Well, it’s not a simple question. There is a big list of “day traders”. These guys usually are very skilled and manage vast cash positions; they are also more likely to have an account set up, at least on paper, then a much more qualified “expert” who does not have a lot of time for trading. In such cases you might see one of these very well-built, very professional traders sitting in a corner and making money. A big part of the money that such “day traders” make comes from their ability to trade through margin loans; this is where we say that there are “day traders who are very, very good” at making small trades. A very skilled “day trader” can make up to 20% per trade. A typical profit for an “expert” trader is anywhere from 20 to 20,000%. In this range would be a big day in trading for such a “day trader”. So how often does a day trading trader get this kind of margin? The short answer is “all the time”. They can, but of course, they need to make sure that they will be able to get it back later. It’s a constant issue for all day traders. A good morning trader, for example, needs to make money when the market is hot enough to make trades, but not at market lows. If, however, the market is too hot, they can lose some of their money. Another, yet more common form of day trading is what is called an “inside trade”, where the trader buys what the market is selling for and sells what it is buying for. The margin is spread too thin, however. On the one hand this is the perfect situation for a trader who wants to make a lot of money. On the other hand, it means that they never have enough money to get everything they need back.
Do there actually exist any “day traders” who can trade?
It’s easy to make the mistake of thinking that “day traders” just exist. It turns out that trading is very different from investing in stocks and commodities. Investing in stocks only requires buying shares and selling them to get cash. Trading is entirely different. Traders need to keep track of different markets and different futures markets so that they are able to get the funds they need with the least risk. It’s a whole other ball game. It requires expertise and very smart trading habits. The amount of actual investment required to become “day trader” is significantly less than
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