There is a lot, a whole lot of competing information on the subject of how much do day traders make. It can range from $40K to $50K per year for the low-end to the high-end traders making hundreds of thousands of dollars a year.
But that is kind of a meaningless question. Because that range of salaries only looks at a small subset of day traders. Because, get ready for this, only 10 PERCENT of day traders actually make any money at all. That is right. Ninety percent of day traders lose money.
Beat Those Odds
So can you make money as a day trader? The average Joe, with little market experience. Can he make some dough. The answer is yes. It take a lot of time and effort, but it can be done.
All that time is dedicated to learning strategies that work. That is the only way to make money. Have a plan and execute it in a smart way. That is how you find out how much day traders make. But getting out there, learning successful techniques and winning with risk controlled strategies.
Take Risk Seriously
The only way you are going to make money as a day trader is by taking the risk seriously on every single trade. Put a stop-loss on every trade you make. And stick to that number. Do not change your risk parameters mid-trade. That will result in losing more money than you had budgeted for.
The Right Tools
Finding stocks to trade is not about using that hot tip from your brother-in-law. You need the right software in order to find the right stocks to trade. Stock scanners can help you find companies with home run potential.
Every day there are stocks that are poised to make big moves. They have metrics in common and, usually, a breaking news catalyst. You need scanners to sort through the ones with the best metrics and then an understanding of financial news to see the potential of a particular stock.
Read The Charts
The next thing traders need to learn is the ability spot the exact right time to place an order. In real time. The way to do that and make a living is to learn how to read chart patterns. It is really just a matter of following the rules.
Warrior Trading is a day trading education site that can teach novice traders how to make money in the market. How to avoid being on of those nameless 90%. Look for Warrior Trading on StockTwits.