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Is day trading a good option for you? What does a day trader do actually? How much do they earn per day? Is it really hard to learn this trading type? If you are looking for the answer to the above questions, this post is for you.
Without proper education and training, you can’t go far in the trading journey. Modern traders want to earn instantly. But the reality is that to become a day trader you will have to learn and educate yourself first.
So, read on: how long does it take to learn day trading?
It will take 6 months to 2 years to get day trading education, training, and practice. However, this time period can extend up to 3 years depending on individual learning capabilities.
The ratio of profitable day traders is quite low. Many traders quit before becoming successful. If you are less patient and have low control of nerves, this trading is not for you.
Keep reading till the end!
What Does It mean By Day Trading?
What does it mean by day trading? What do day traders do mainly?
Simply, day trading is the process of purchasing and selling securities (stock or currencies) within a single day. Day traders can buy and sell these securities multiple times within the same day. It’s a common phenomenon in any marketplace. However, it’s much popular when trading forex and stock.
Mostly such traders don’t carry any open positions to the next day. They purchase and sell within the same day before the market closes. Such traders are well educated. They are well aware of short-term market moves. They know how to use leverage factors to increase intraday trade exposure.
How Much Time Does It Take to Learn Day Trading
Now you know the basics of day trading. If you’re new to the trading world, learning day trading is a challenging and time-consuming task. But for advanced learners, it depends on how many skills they had to move to this trading type.
We believe, every trader is different. It’s hard to determine the exact time to be a day trade period. As some traders are newbies, some are educated in forex but less experienced, some are advanced traders. On average, it may take 6months to 2years to be a successful day trader.
There is no guarantee that this time frame is suitable according to the skill -level, and intelligence of every trader. Some traders may take 3 years to move to this level. Some may quit earlier. Trading is unpredictable. It’s right to say trading education goes on with life!
We have a detailed article about can retail forex traders make money.
Why Day Trading Is Long Way: Reasons
If you think you’re ready to move on to day trading, you might be right or wrong both. This is because learning day trading is a long way. There are a few reasons that make this learning a difficult and time taking task.
Let’s check out the reasons below:
It’s not just saying and starting. You need to have skills, knowledge about the financial market, and human psychology prior to joining. The preparation time may depend on individual skills. For example, it may be less than a year for some traders, while others prepare themselves in more than a year.
Only knowledge and skills are nothing without practice. According to experts, a successful day trader stays on a demo trading account for at least 6 months. If they take 6 months in learning and 6 months in practice it will be a one-year-long process. But some traders learn and practice simultaneously to save this time.
How Can I Learn Day Trading Quickly: 5 Tips
To be honest, learning day trading requires patience and hard work. It can only be profitable when traders take it seriously as a job. Below are a few tips for those who want to learn day trading quickly:
Update Financial Market Knowledge
Basic knowledge about forex is not enough to start day trading. To boost learning, update your financial market knowledge through news and events.
Keep Surplus Amount Aside
One of the top-rated day trading strategies is to risk 1% or 2% of the account per trade. keep a surplus amount aside in case of loss to reinvest.
Use Effective Trading strategy
Expert day traders use different strategies like swing trade, arbitrage, and trading news. These strategies are revised until traders start making consistent profits and avoid stop losses.
Understand Time Factor
Time matters a lot as the market is highly volatile right after opening. So, learn to give time to profitable trades. However, newbies should start 10-15min later after the market opens.
Set Realistic Expectations
When it comes to making a profit, don’t think every trade is profitable. Many traders make only 50% to 60% win trades. Make sure to limit the risk factor on each trade. Use stop loses.
How Hard It Is to Learn Day Trading
Is day trading harder? The answer is, it’s hard for traders who don’t know how to trade actually. Though it’s harder for newbies who recently switch from demo to real money account. But for professional traders, it will get easier with time.
Though it looks pretty straightforward, that is buying at the bottom of fluctuation and sell at the top. This short-term fluctuation is highly manipulating. Every second is important. You will have to monitor the market situation continuously as well as develop the psychology for day trading.
It also depends on your self-assessment. Many traders fail to make a profit from day trading even they are educated and have skills although we all know that make $100 a day as a day trader is easy. They should avail mentorship of an expert professional day trader.
How much does a beginner day trader make
Though it is hard to figure out the exact earning of a beginner day trader. Only a few beginner day traders tend to disclose their results to the public other than the Internal Revenue Service.
The money profession trader make per day is highly dependent on three factors discussed below:
- rules of the market where they trade
- Initial Investment Or starting balance
- Number of trades per day
You can’t risk more than 1% to 2% of the account on a single trade. For example, suppose you trading forex with an initial balance of 30,000$ and a risk ratio1% to 2%. If you place 5 trades per day, you can make around 3,750$. However, the commission fee and other dues are included.
Broker choice is another critical factor for a successful day trader. ICMarkets is a regulated and low spread broker your can start with where your investment will be on the safe side.
From the above post, you can guess the time frame to learn day trading. Saying 6 months does not mean everyone will take this time. Depending on your level of trading and emotional factors, this time may increase.
If you think you can be a successful trader before 6 months as you’ve earned two or three times. Remember it’s possible to earn before 6-month training by chance or by luck. But it’s impossible to make money regularly money before spending proper time on learning and training this trading type.
Consistent traders never stop learning anytime during trading. How much time did you take to learn forex? Share your learning experience with us!