Exploring A Career In Day Trading
The lure of day trading is pretty hard to ignore with the prospect of earning a living well into the six figures. For a day trader to be successful there are a number of factors that come into play with the major two being knowing when to buy and knowing when to sell. Through out this article we will look at a scenario starring Marty Forex and see how he makes a living by day trading
At the beginning of the work day Marty Forex decides to purchase 100 shares of Forex-Trading Inc. Marty knows from watching the current trends that Forex-Trading is about to make a huge leap forward and it turns out he is right as the stock jumps a point in the next few hours. Since he is a day trader Mary wants to leave while he is still ahead so he sells off his shares in Forex-Trading Inc. Marty is successful because he is both careful and knows how to read the stock signs.
If the amount of profit that Marty Forex makes for this trade is $100 (obviously an amount simply for this scenario) he would most likely use half as account cover capital, and half as re investment. Of course, no one in the day trading game is doing any investing with $50; again, this figure is simply for illustration. If he makes five similar trades for the business days, with equally similar results, he will have made $500 of profit. Keeping with that theme, 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 Trader probably handles quite a few more trades than that in a day's time.
It is completely unheard of to have a trader bat 100% so lets look at a scenario where Marty Forex handles 10 stock trades per day with the same $100 profit. For this scenario we will assume Marty is successful on 30% of his trades so out of the 10 trades Marty completes he makes a $300 profit per day, times this by five and Marty is bringing home $1500 per week before expenses. Now if Marty can use the tools and resources that are out there his success percentage will increase which means more money to take home at the end of the week
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. - 23210
At the beginning of the work day Marty Forex decides to purchase 100 shares of Forex-Trading Inc. Marty knows from watching the current trends that Forex-Trading is about to make a huge leap forward and it turns out he is right as the stock jumps a point in the next few hours. Since he is a day trader Mary wants to leave while he is still ahead so he sells off his shares in Forex-Trading Inc. Marty is successful because he is both careful and knows how to read the stock signs.
If the amount of profit that Marty Forex makes for this trade is $100 (obviously an amount simply for this scenario) he would most likely use half as account cover capital, and half as re investment. Of course, no one in the day trading game is doing any investing with $50; again, this figure is simply for illustration. If he makes five similar trades for the business days, with equally similar results, he will have made $500 of profit. Keeping with that theme, 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 Trader probably handles quite a few more trades than that in a day's time.
It is completely unheard of to have a trader bat 100% so lets look at a scenario where Marty Forex handles 10 stock trades per day with the same $100 profit. For this scenario we will assume Marty is successful on 30% of his trades so out of the 10 trades Marty completes he makes a $300 profit per day, times this by five and Marty is bringing home $1500 per week before expenses. Now if Marty can use the tools and resources that are out there his success percentage will increase which means more money to take home at the end of the week
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. - 23210
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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.
posted by X - Men @ 5:33 AM
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