Becoming A Day Trader



In this post, I'll talk about what you can expect when becoming a Day Trader. I also have some other posts with Day Trading Tips and Day Trader FAQ's if you'd like to look around my blog, Trader Upgrade. I'll do a basic overview of the most important aspects of a Day Trader, which should help you decide if Day Trading is the career for you.

Salary

 The salary of a Day Trader varies tremendously and can realistically be anywhere from $0 to several Millions of dollars. It is a very entrepreneurial job, so you "eat what you kill" in a way. If you become an independent Day Trader, your salary may actually be negative. Working at an investment firm or prop trading firm, you usually take a percentage of your profits, using their capital to trade, which can range from 20% to 90% depending on many factors like credibility and experience. You usually don't have to pay for losses if you never become profitable but that would likely end in termination of your job there. Although, if you do become successful as a Day Trader, you can usually obtain financial freedom, earning upwards of 6 or 7 figures annually. Although, I must warn you that the success rate is very low, below 10%, so you must really be committed to becoming a Day Trader.

Learning Curve

 The learning curve to become a successful Day Trader also varies. My best guess to becoming consistently profitable would be between 1 and 2 years of hard studying and watching the markets. If you are dedicated enough to make it to that point, I believe you will begin understanding how to become a a consistently profitable Day Trader. Day Trading requires very strong soft skills such as emotional control, and strong cognitive skills, so you must learn to be very well-rounded in those areas, rather than just learning hard skills like placing trades or reading charts.

Difficulty

 The success rate of a Day Trader is less than 10%, likely under 5%. It takes much more than being good with computers and being up to date with big companies like Apple or Amazon. It is a mental game full of frustration and confusion. As I've said, cognitive skills are very important so I would say that some people with those skills may have an advantage. Some of these skills are:
  • Patience
  • Emotional Stability
  • Open-mindedness
  • Teachable

Lifestyle

 The lifestyle of a Day Trader can really be however you make it. If you are an independent Day Trader, you have freedom to travel, work from home, and leave the market when you see fit. Although, I have noticed the the most successful Day Traders I know are very humble. Maybe the markets teach them to be humble, maybe they've succeeded because they are humble. I will tell you that to become a successful Day Trader, a lavish lifestyle should NOT be your biggest motivation. You must sincerely enjoy Day Trading and focus on the processes, not the money, to become a successful Day Trader.

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