There have been a ton of examples of people who started out day trading as a side income to becoming a day trader as there career mode. Day trading does have its risk but it can be very lucrative at the same time. Lets look at the Marty Forex scenario to see how a day trader makes not only profit but a living as a professional day trader.
At the start of the work day Marty Forex decides to purchase a 100 shares of Forex-Trading Inc for by watching the trends Marty feels confident that this particular stock is on the rise. Turns out Marty is right as Forex-Trading Inc jumps up a full point before it is even lunch time. Marty decides to sell off his stocks in Forex-Trading before the end of the day and by doing so Marty is successful and makes a profit.
We will assume that Marty Forex made a $100 profit from his trade of Forex-Trade Inc and more than likely Marty would use half of that to apply against capital and the other half to be put towards future investments. Of course, no one in the day trading game is doing any investing with $50; this figure is simply for illustration. If Marty Forex makes five similar trades for the business day, with the same results, he will have made $500 of profit. Keeping with that trend, trading five days a week would net Marty $2500 of profit per week. (Commissions, overhead costs and other business expenses, realistically bringing the amount down to $2000 or less would reduce this figure.) This is still a nice bit of profit, considering that this is only one stock's trade performance. Marty Forex probably handles quite a few more trades than that in a typical day's time.
Now unfortunately not every trade is going to result in a profit so lets look at a scenario where Marty Forex handles ten stock trades per day with the same $100 profit. We will say that Marty is successful on 30% of his trades so out of the ten trades Marty makes $300 profit. Same scenario for a typical week will see Marty bringing home around $1500 before expenses kick in. Hopefully with more education on determining what a stock is going to do next Marty can increase his success percentage which increases his profits.
Day trading does come with a substantial risk but if you use all of the available tools and resources that are available your odds of success increase. Make sure that you understand what you are getting into before you even knock on the door. An untrained day trader is a broke day trader. - 31987
At the start of the work day Marty Forex decides to purchase a 100 shares of Forex-Trading Inc for by watching the trends Marty feels confident that this particular stock is on the rise. Turns out Marty is right as Forex-Trading Inc jumps up a full point before it is even lunch time. Marty decides to sell off his stocks in Forex-Trading before the end of the day and by doing so Marty is successful and makes a profit.
We will assume that Marty Forex made a $100 profit from his trade of Forex-Trade Inc and more than likely Marty would use half of that to apply against capital and the other half to be put towards future investments. Of course, no one in the day trading game is doing any investing with $50; this figure is simply for illustration. If Marty Forex makes five similar trades for the business day, with the same results, he will have made $500 of profit. Keeping with that trend, trading five days a week would net Marty $2500 of profit per week. (Commissions, overhead costs and other business expenses, realistically bringing the amount down to $2000 or less would reduce this figure.) This is still a nice bit of profit, considering that this is only one stock's trade performance. Marty Forex probably handles quite a few more trades than that in a typical day's time.
Now unfortunately not every trade is going to result in a profit so lets look at a scenario where Marty Forex handles ten stock trades per day with the same $100 profit. We will say that Marty is successful on 30% of his trades so out of the ten trades Marty makes $300 profit. Same scenario for a typical week will see Marty bringing home around $1500 before expenses kick in. Hopefully with more education on determining what a stock is going to do next Marty can increase his success percentage which increases his profits.
Day trading does come with a substantial risk but if you use all of the available tools and resources that are available your odds of success increase. Make sure that you understand what you are getting into before you even knock on the door. An untrained day trader is a broke day trader. - 31987
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Want to find out more about Forex Software Robots, then visit Terry Connor's site on how to choose the best Forex Software Robots for your needs.
