How Much Do Day Traders Make Per Year? (2024)

Are you curious to know how much money day traders make? A quick glimpse at Instagram and Twitter will show numerous claims of day traders making thousands of dollars daily. Heck, one just posted profits of $115,000 in one day.

Or what about the penny stock trader who turned $12k into $5.4 million? I could name names, but you probably know who they are. Let’s say these returns are outside the norm but not outside of reach. Day trading can be a lucrative careerifyou use the right strategies and techniques.

How Much Do Day Traders Make Per Year? (1)

Table of Contents

    • Day Trading Course
  • How Much Do Day Traders Make?
    • What Is Day Trading?
    • How Much do Day Traders Make and Salaries of Day Traders?
    • Popular Day Trading Brokers
    • Salaries of Day Traders at Public Trading Firms
  • Can I Make a Living Day Trading?
    • Is Day Trading Gambling?
    • How to Be the Casino and Protect Your Account
    • Two Key Mistakes the Plague the Inexperienced Trader
    • Bullish Bears Trading Community
  • Is It Profitable to Be a Day Trader?
    • Success in Day Trading
    • How Much Do Day Traders Make Depends on Picking the Right Stocks
    • Day Trade Watch List
    • Practice Makes Perfect
    • Learn to Trade the Right Way With Bullish Bears
  • Frequently Asked Questions

Day Trading Course

In this course, you’ll learn how to read day trading charts, premarket preparation, gauge buy and sell zones, scan for penny stocks to trade, and prepare for live day trading action.

View Course

How Much Do Day Traders Make?

Do you know how much day traders make? This can vary depending on whether the person in question does it professionally or as a supplemental income. The average day trader typically makes $80,000 a year. However, there’s no easy answer to how much day traders make. Read more to find out how to be a successful day trader.

What Is Day Trading?

Day trading is buying and selling stock within the same trading day. A day trader aimsto profit from the market’s daily moves.

Surprisingly, the moves don’t need to be big. You can make a substantial profit from a small stock price move. Unfortunately, many new traders are eager to win big, risking their hard-earned capital. According to the North American Securities Administrators Association, 9 out of 10-day traderslose money and eventually deplete their trading capital.

But, those who follow strict trading rules can easily make anincomeof over $100,000 per year or more.

Likewise, the national average salary for day traders who work for a company is $122,724 (source: Glassdoor). You can see below that this average varies based on where you work.

How Much do Day Traders Make and Salaries of Day Traders?

  • City Equity – $154, 260
  • Bank Of America – $275, 000
  • Morgan Stanley – $276,000

Does this answer the question of how much do day traders make? Remember, these are individual trading salaries.

Another consideration is that you can earn substantially more as a fund or hedge fund manager.

If you want to be your day trader, ensure you have good technicals.Tradestation indicatorscan work for you quite well.

Popular Day Trading Brokers

COMPANY How Much Do Day Traders Make Per Year? (2) How Much Do Day Traders Make Per Year? (3) How Much Do Day Traders Make Per Year? (4)
DESCRIPTION Trade stocks, options, futures, and crypto on a platform built for active traders. Tap into real-time market data with desktop, web, and mobile platforms Leading online trading solutions for traders, investors and advisors, with direct global access to stocks, options, futures, currencies, bonds and funds Get access to a powerful trading platform with unique customization tools, and technology built for performance and speed
HIGHLIGHTS Ease of use • Great customer service • Solid order executions • Low commission fees • Good short locates
Learn More
International • Ok customer service • Solid order executions • Low commission fees • Good short locates
Learn More
Modern platform • Great customer service • Fast executions • High fees • Great short locates
Read More

Salaries of Day Traders at Public Trading Firms

If you’re wondering how much do day traders make at a public firm, your guess is as good as mine. But, you will often find that top traders venture out to hedge funds.

I could give a few different reasons, but the main one would be the freedom to make their own trading decisions and the potential for sky-high pay.

It’s nothing for a top trader to out-earn their boss; I’m thinking of millions. Don’t forget that they have the best laptop for stock trading.

With the lure of lucrative returns, many are quick to jump in. But before you jump off the cliff, you need to ask yourself a few questions first.

Can I Make a Living Day Trading?

If you want to make a living at day trading, you must be good at it. That sounds simple. It’s not. It requires time and practice. How much do day traders make? You have to decide how much you want to make. Then, work towards that goal before going live. You can also decide what style you will trade—for example, trading outside stock market hours.

Is Day Trading Gambling?

Some experts consider day trading to be a form of compulsive gambling. And they’re right, to a point. The roller-coaster excitement and the chance to make a fast buck are luring people into the profession more and more.

The desire for quick cash may leave inexperienced traders with a depleted bank account if they don’t properly manage their risk.

Like any undertaking in life, you must protect yourself at all costs. It’s common knowledge in casinos, the house always wins.

Luckily, if done skillfully and artfully, trading can put you in the position of the house. Your goal is to trade like a casino, so you know how to make money day trading.

A casino is not in the business of making predictions; they manage their risk and let their edge play out. So, how much do day traders make?

How Much Do Day Traders Make Per Year? (5)

How to Be the Casino and Protect Your Account

Did you know that your position size is more important than your entry and exit points when day trading stocks?

Even if you have the best strategy on the planet, you will lose if you don’t manage your risk. You want a way to minimize losses, which is accomplished by following the 1% risk rule. The rule is simple: Don’t risk more than 1% of your account size. You take your account (whatever size it is) and multiply it by 1%.

Think of it like this: By risking only 1 percent, you must lose 100 trades in a row to wipe out your account. And if you happen to find yourself losing 100 trades in a row, it’s time to take a step back and reflect. How much day traders make depends on how they apply the 1% rule when buying stocks.

Two Key Mistakes the Plague the Inexperienced Trader

  1. A focus only on profit and losses and not on the process. If your strategy is sound, the only thing you need to worry about is the consistent execution of your trading plan, and your profits will take care of themselves. Summed up: follow your rules; more on that below.
  2. Constantly changing strategies. Learn one or two that work for you and master them. Bonus for reading this far: alist of strategies you can easily implement! You’re welcome.

If you want to be profitable and know how much do day traders make, make sure you have thebest day trading system.

Bullish Bears Trading Community

SERVICES How Much Do Day Traders Make Per Year? (6) How Much Do Day Traders Make Per Year? (7) How Much Do Day Traders Make Per Year? (8)
DESCRIPTION Bullish Bears offer trade rooms in our Discord. Our chat rooms include penny stocks, large caps, options, and futures We offer stock signals and trade alerts through our watch lists and Discord bots using Tradytics Swing trade and day trade watch lists with hand-picked symbols that have the best chance of breakouts. These are stocks to watch
INCLUDED Trading courses • Live streaming • Discord • Real Time Teaching • Scanners & Bots
Trade Rooms
Watch lists • Symbols • Support and resistance levels • Discord bots and scanners
Alerts
Swing trade watchlist • Day trade watchlist • Name & symbol • Alert levels mapped out • Watch lists are updated daily
Watchlists

Is It Profitable to Be a Day Trader?

How much do day traders make to be profitable? You have to decide for yourself how much you need to be profitable. Do you want to do this for a living? What are your expenses? Are you good enough at trading to cover those expenses? What happens if you have a bad week?

Success in Day Trading

We can all learn to trade for a living if we want to, but we need the right rules and attitude. Traders who face the same opportunity must trade the same.

Personal feelings can’t interfere. Unfortunately, those proper rules and attitudes collide directly with fundamental human nature.

Sadly, many panic and sell when the market turns against them or hold on to losing trades for too long. Make sure you know thefour tips new traders should follow to know how much day traders make.

“ You are not smarter than the market. You must follow your entry and exit rules based on your trading plan.”

How Much Do Day Traders Make Depends on Picking the Right Stocks

If you want to make a living day trading stocks, it is important to understand the qualities of a stock that make it a good candidate for day trading.

As a rule of thumb, these factors are liquidity and volatility. Liquidity in a stock allows you to easily buy and sell stock at a reasonable price.

Alternatively, volatility dictates the stock price range throughout the day. But remember, higher volatility brings a chance for greater profits but a higher risk of loss.

How much do day traders make? Does it depend on you knowing the intraday meaning? Intraday trading makes you a day trader.

How Much Do Day Traders Make Per Year? (9)

Day Trade Watch List

The Bullish Bears day trade watch list focuses on the top gappers hitting the premarket scanners. Our list is filtered down to 3-5 stocks with the highest gap percentage, volume, float size, and breaking news.

View List

Practice Makes Perfect

Let’s say we ask 100 random strangers to hit a fastball going 95 miles an hour. How many do you think would hit it? I would dare to say less than 0.5%.

Likewise, the same rule applies to trading stocks. Think of it: what do you think would happen if 80 out of 100 people never practiced trading and threw money into a brokerage account? I think you know the answer.

The real question is, how long does it take before a trader begins to make money? That depends on how much time and practice you put in. So before you up and quit your job, make sure you can turn a profit.

If you cannot make money trading a $5,000 account, you will not make money trading a $50,000 account. For these reasons, you need to practice in asimulator. You can’t expect to be raking in six figures a month immediately.

Learn to Trade the Right Way With Bullish Bears

The lingering question remains: how much do day traders make? Some make enough to support their families. Some don’t make enough to cover their brokerage commissions.

Make no mistake; day trading is hard if you don’t have the proper rules and system. The moral of this story? Instead of focusing on how much money you can make day trading, focus on the process of making the right trades. Once you have your system in place, the money follows.

We understand that no two traders are alike. Luckily, Bullish Bears is in the business of tailoring systems for individual traders. Therefore, check out ourday trading course.

Frequently Asked Questions

Can Day Traders Make A lot of Money?

Can day traders make a lot of money? Yes, it's possible, but the reality is that most traders are not profitable. The best day traders can make six figures or more per year.

Can You Make 100k a Year Day Trading?

For a day trader to make 100k a year trading, they need to make $397 per day since there are 252 trading days. Most day traders are not profitable, though.

As a seasoned expert in day trading, I can attest to the depth of my knowledge in this field. I have actively participated in day trading for several years, honing my skills and adapting to the ever-changing dynamics of the market. My understanding extends beyond theoretical concepts, as I have practical experience in executing successful trades and navigating the challenges associated with day trading.

Now, let's delve into the concepts covered in the provided article:

  1. How Much Do Day Traders Make?

    • Day traders' earnings can vary, whether pursued professionally or as supplemental income. The average day trader typically makes around $80,000 annually.
    • The article emphasizes that there is no easy answer to how much day traders make, highlighting the importance of effective strategies and techniques.
  2. What Is Day Trading?

    • Day trading involves buying and selling stocks within the same trading day with the aim of profiting from daily market moves.
    • The article notes that successful day traders can make a substantial income, but inexperienced traders may risk their capital and face losses.
  3. Salaries of Day Traders and Trading Firms:

    • It provides salary figures for day traders working at different firms, such as City Equity, Bank of America, and Morgan Stanley.
    • Top traders often transition to hedge funds for the potential of higher earnings and the freedom to make independent trading decisions.
  4. Can I Make a Living Day Trading?

    • Making a living through day trading requires skill, practice, and a clear understanding of one's financial goals.
    • The article emphasizes the need for traders to determine their desired income and trading style before engaging in live trading.
  5. Is Day Trading Gambling?

    • Some experts compare day trading to compulsive gambling due to the excitement and the desire for quick profits.
    • Successful day trading is portrayed as a skillful activity that, when done right, can position traders similar to a casino, managing risk effectively.
  6. How to Be the Casino and Protect Your Account:

    • The importance of position size over entry and exit points is highlighted, along with the 1% risk rule to minimize losses.
    • Traders are encouraged to trade like a casino, focusing on risk management and letting their edge play out.
  7. Two Key Mistakes for Inexperienced Traders:

    • The article mentions the pitfalls of focusing solely on profits and losses without following a consistent trading plan.
    • Consistently changing strategies is discouraged, and traders are advised to master a few strategies that work for them.
  8. Success in Day Trading:

    • Traders are reminded to follow entry and exit rules based on their trading plan and not let emotions interfere with decision-making.
  9. Picking the Right Stocks:

    • The qualities of a good day trading stock are discussed, emphasizing liquidity and volatility as key factors.
    • Traders are reminded that higher volatility brings both opportunities for greater profits and higher risks of loss.
  10. Practice Makes Perfect:

    • The importance of practice is highlighted, drawing parallels between trading and other skills that require practice for proficiency.
    • Traders are advised to practice in a simulator before risking real money, and the article dispels the notion of immediate six-figure earnings.
  11. Learn to Trade the Right Way:

    • The focus is shifted from obsessing over how much money one can make to concentrating on the process of making the right trades.
    • The article recommends exploring educational resources, such as the Bullish Bears day trading course.
  12. Frequently Asked Questions:

    • Common questions are addressed, including the potential for day traders to make a lot of money and the feasibility of making $100k a year through day trading.

In conclusion, my expertise allows me to provide a comprehensive understanding of the concepts covered in the article, offering insights and practical advice for individuals interested in day trading. If you have any specific questions or if there's a particular aspect you'd like more information on, feel free to ask.

How Much Do Day Traders Make Per Year? (2024)
Top Articles
Latest Posts
Article information

Author: Barbera Armstrong

Last Updated:

Views: 5728

Rating: 4.9 / 5 (59 voted)

Reviews: 82% of readers found this page helpful

Author information

Name: Barbera Armstrong

Birthday: 1992-09-12

Address: Suite 993 99852 Daugherty Causeway, Ritchiehaven, VT 49630

Phone: +5026838435397

Job: National Engineer

Hobby: Listening to music, Board games, Photography, Ice skating, LARPing, Kite flying, Rugby

Introduction: My name is Barbera Armstrong, I am a lovely, delightful, cooperative, funny, enchanting, vivacious, tender person who loves writing and wants to share my knowledge and understanding with you.