Day trading, without a doubt, has the potential to make you a lot of money. You may have seen various personalities on the internet and on social media platforms claiming to have earned fortunes from day trading.
New traders often ask how much they can earn on average as a beginner trader. The question is important, but unfortunately there is no definitive or absolute figure. The average amount you can earn day trading depends on countless factors and varies from trader to trader.
According to estimates, about 90% of retail traders lose money, which means that there is a higher chance that you are among the 90% of unprofitable merchants. But that doesn’t mean you should give up trading altogether assuming you can never make money trading.
You need to be disciplined and set smaller, achievable goals. In fact, your priority during your first days of trading should be to protect your capital and not try to make big profits.
When you familiarize yourself with the market and have mastered the art of risk management, you can go and make money. Some traders take high leverage and open large positions to generate a strong profit, but end up struggling to manage their position as emotions start to come into play.
As soon as the positions turn red, you do not find the courage to close your losing trade to stop your losses, but you find the courage to end your winning trade halfway and leave the money on the table.
While there’s no definitive answer on the average amount of money you can earn as an independent day trader, you can compete to become a better trader with each passing day.
AVERAGE DAY TRADING SALARY
While you can
start day trading on your own without much difficulty, you can also get a job at trading companies where you can earn a reasonable salary without risking your own money.
An average day trader earned around $82,000 per year in 2020 based on 1,694 salaries posted on the website. On the other hand, traders at premium banks, such as Bank of America and Morgan Stanley earn an average of around $280,000 per year.
The remuneration of a trader in CitiBank can be up to $500,000. Private hedge fund managers and high-net worth fund managers get even higher salaries.
HOW TO MAKE A TRADING PAYCHECK?
If you want to get a job as a day trader in a trading company or financial institution, you may need a Series 7 or Series 63 license. The Series 7 license allows you to trade within the federal level, while the Series 63 license allows you to trade within state borders.
The base salary of an entry-level day trader as of 2020 was between $50,000 and $70,000. However, you need to provide decent returns and continue your performance to continue your work. The salary you get as a day trader, according to some estimates, is about 10%-30% of the profit you generate for the company.
If you behave constantly and for a few years, you can get a salary raise and start earning from about $ 150,000 to $ 180,000. Simply put, if you consistently earn money for the company, you would keep your job and also earn a decent amount of money.
