Can You Make a Living Off Day Trading?

Day trading can be a scary and complicated subject.

We’ve all heard stories of traders who lose their fortune overnight, but what about the ones that make money? Can you make a living off day trading?

Some people may say the only way is if you’re using automated strategies, which I totally disagree with. You don’t have to trade like that.

But how do you know where you stand as a future day trader? What are some challenges you will face and how do you overcome them?

This article is designed for all levels of traders looking for information about what it takes to succeed in this industry. From beginners who have never traded before to professionals who have been doing it for years and want more time working from home — we’ve got your answers here.


Can you make a living off day trading?

Yes, absolutely! Day trading can be profitable, and if you comprehend the cryptocurrency industry thoroughly, it can also be a great source of income and can potentially be a full-time job (like me, of course!). Although it can be challenging to do, it is very much possible to live solely off of day trading money.

It’s not always simpler or less difficult than working a traditional 9 to 5 job, and you’re not even sure if you can consistently make enough money to support your way of life. But if you succeed in maintaining that regularity, you may securely rely on your day trading earnings.


Is it difficult to make a living off day trading?

Despite the obvious benefits, remarks about day trading full-time also draw attention to potential drawbacks. Even though every person’s experience will be unique, day traders frequently confront the following difficulties:

Keep on Trading While Stressed Out

As a day trader, one of the hardest battles you will have to wage is controlling your emotions so that they don’t undermine all of your efforts. Your anxiety may prevent you from taking suitable trades or cause you to minimize your profits too soon, while your greed may cause you to act rashly or to start pursuing missed trades.

However, changing your risk management strategy, such as deleting a stop loss to prevent incurring a loss, is even worse.

It may appear simple now, but when you’ve got $3,000 on the line and have been looking directly and tensely at the monitor for the last six hours, it’s not so simple.

Using as much trading practice and technical information as possible is an effective way to minimize your emotional liability.

Managing your emotions will require practice, with plenty of mistakes, and then some more mistakes. However, a clever trick that many traders use is to concentrate on the trade rather than the money.

I would recommend reading around trading psychology as your focus. 

  1. Mastering Trading Psychology by Andrew Aziz & Mike Baehr
  2. The Mental Game of Trading by Jared Tendler
  3. Trading in the Zone by Mark Douglas

Finding a profitable trading plan

This one can be challenging because the market has become extremely competitive and both institutional and retail traders are using trading algorithms and AIs to execute trades on their behalf. This makes it particularly difficult to find a trading strategy with a competitive edge when it comes to discretionary trading.

To find out more on how to properly execute a good Profit-Taking Strategy, read more here: What’s the best profit-taking strategy in day trading?

Inconsistent Earnings

It is difficult to consistently produce profits every month, therefore income can be unstable. Even expert traders do endure some lost months. What transpires then during those months when you unavoidably lose money or perhaps break even? To plan for a rainy day, you must learn to set aside a portion of your gains from profitable months.

No other source of income

It might be difficult when there is no alternative source of income because trading makes it simple to lose money while you are in a dire financial situation. In that circumstance, you are more likely to commit trading mistakes like failing to exit a lost trade, acting hastily, or chasing missed trades.


How much money can you really make day trading?

The profit potential is the main reason why some people want to start day trading. In fact, one of the most frequently asked questions is, “How much money can I make day trading?”

make a living off day trading - how much can you make?

It’s a difficult question to answer, and the reason is that amount you earn is determined by a variety of considerations, such as the trading strategies you employ and how well they are implemented. Let us now examine those factors before attempting to calculate potential returns. These elements are as follows:

The effectiveness of your trading strategy

You need a successful and reliable approach to be able to generate decent profits that can cover your living costs if you want to make day trading your full-time job. Because one strategy cannot be effective in all market scenarios, it is also vital to have numerous strategies for various market conditions.

Your position size and trading capital

When all else is equal, it makes sense to assume that a larger position size will result in greater profits, but this is not always the case because when the unavoidable losing streak occurs, the larger position size results in a greater drawdown and could even result in the loss of the whole trading account.

In order to reduce the risk of financial disaster to a manageable level, it is typically advised to risk no more than 1-3 percent of your trading capital on every trade.

Time and Effort of your day trading schedule

Without investing the necessary time and effort, day trading is not something you can excel at. You won’t be able to benefit the most from your strategy if you’re not constantly available to execute the trades that your strategy suggests. Therefore, if your strategy is manually implemented, you must be there at all times to place trades.

As you can see, the profits you get from day trading can be very unpredictable. However, we do know that expecting all of those 15–30 percent monthly profits or over 100 percent annually that you see online is not feasible. They are merely attempting to promote their offering or aid in a scam.

We consider any return in the range of 30–50% annually or 2-5% monthly to be excellent. If you don’t take the profit, you’ll be doubling your money in this manner every two to three years. However, you will be taking some or all of that profit each month because you want to live off of your monthly returns.

Here’s my take:


Let’s talk about regional differences in day trading

Trading in different locations around the world presents a variety of challenges. For instance, countries like India and Malaysia not only provide volatile movements for trading but also have very cheap costs of living, making it more practical. It can be difficult to access markets with higher volume though, and there might also be time-zone concerns.

Day trading full-time in the US, Canada, Singapore or UK still presents many chances, but there is a lot of competition and significant living expenses to deal with.

Volatility and volume won’t be lacking, but you’ll need to figure out how much you’ll need to make on average each week or month to comfortably earn a good amount of profit from day trading.


Learning how to day trade crypto

Utilize a variety of technical information if you want the highest odds of winning at day trading. Thankfully, these days you can get free instructional materials online with just a few mouse clicks. I’ve personally compiled a list of the best crypto trading tools you should take into consideration that will enable you to successfully day trade cryptocurrency.

On online forums, blogs, and podcasts, you can find direct guidance from seasoned traders. In-depth approach examples from books and tutorial videos, many of which can be available here, can also be helpful to you. However, if you want more detailed instructions on how to make a living off day trading, I got you all covered! Just click the button below to get started:

Just going to take a quick side note here: did you know that you can actually be a crypto affiliate marketer by promoting crypto apps and tools? This could be another great source of income for you aside from getting profit on your trades. Read my full blog here: Best Crypto Affiliate Programs This 2022.

So, can you make a living off day trading? I’m interested in your answers on this, so feel free to comment down below!

-Martina

6 thoughts on “Can You Make a Living Off Day Trading?”

  1. Despite some of the difficulties of day trading, this type of trading is very popular among newcomers as well as experienced traders. Day trading allows you to make a profit in the shortest possible time with a small amount of funds. So, in order for your day trading to be profitable, you need to monitor the market situation.

    Reply
    • Not to mention the scams that are roaming around the cryptocurrency world. Beginner traders (or even seasoned traders) must stay vigilant and updated to any crypto news in order to trade safely.

      Reply
  2. Thank you very much for this valuable and comprehensive post about day trading. I have never gone into trading. But I am eager to learn trading. I think this post means a lot to me. And day trading is profitable. Must be directed in this direction. Keep posting like this. I will definitely share this

    Reply
  3. I have never traded despite being bombarded by people assuring me that I will retire in next to no time! And so it was refreshing to read your article that not only points out the positives but also spends time highlighting the negatives. What you have achieved is a good overview of the sector and reassured people like me that it takes time, dedication, and personal skills to succeed.

    Reply
    • Thank you, Michael. Day Trading really does come with a lot of risks, so disclosing them would be just as important for those starting to be Day Traders. We’re risking our capital, our money here. Trading crypto involves being able to flawlessly execute a trade, and we can only do that if we’re able to acknowledge the negative aspects of it.

      Reply

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