Hello folks, Ross Cameron here. You’ve probably found yourself wondering just how much money the average day trader really rakes in. Is it enough to ditch the 9-to-5 grind, or is it more of a pipe dream? Well, I’m here to break it down for you, using my personal trading profits and experience as an example. So, grab a cup of coffee and let’s get into the nitty-gritty of day trading incomes and what it really takes to make a profit in this game.
The Average Salary of a Day Trader
Let’s kick things off with what you’re probably most curious about: money. How much does the average day trader actually make? Well, it depends on who you ask. According to Zipia, day traders in the United States pocket an average of $116,000 per year. Glassdoor bumps that number up to $178,000, but they’re counting folks who work at prop firms and trading desks—so it’s a bit of a different ball game. Then there’s ZipRecruiter, saying the average self-employed trader like myself pulls in about $94,000 annually.
But here’s the thing: none of these places tell you about the success rate of becoming a successful trader, which, let’s be honest, is not super high. For every trader jazzed about their earnings, there are countless others facing losses.
Breaking Down Profits
To give you a real taste of what’s possible, let me share my own numbers—even though I’ll tell you they’re not typical. Across 72 months and over 24,000 day trades, I’ve grossed just shy of $12.5 million. That boils down to an average monthly profit of about $144,000—but remember, my results are far from the norm. Now, let’s dive into where these profits come from. It’s all about the strategy, folks.
Timing is Everything
For me, the golden hours are between 8:00 a.m. and 10:00 a.m. That’s where 99% of my profits come from. You’ll find traders who swear by the “Power Hour” or trade in the wee hours, but I’ve found my sweet spot in the early market hours.
Which Days Pay the Bills?
Wednesday and Thursday, hands down. I make money every day of the week, but these two days are where the magic happens. Mondays? Eh, not so much—it’s more about getting a feel for the week, playing it safe to start.
Hitting the Mark
My accuracy rate sits at 68.9%, meaning I’m wrong a bit over 30% of the time. But here’s the kicker: being a profitable trader doesn’t mean nailing every trade. It’s about knowing when to cut your losses. Took me a bit, but I learned to keep my losses as small as possible and live by the “breakout or bailout” mantra.
Finding My Sweet Spot
Stocks priced between $5 and $10 a share are my go-to. This range allows me to snag a decent position size and still manage risk effectively. Anything over $20 and under $2 is usually not very compelling for me to trade.
Volume and liquidity are key. I aim for stocks that see more than 100,000-1 million shares traded in the premarket. Relative volume is another biggie—it helps me gauge if a stock is worth the risk based on today’s activity compared to the norm.
The Mind Game
Day trading isn’t just about making quick decisions—it’s a mental game, too. Losing more on a bad day than you can win back on a good one is a no-go. And trying to hold onto losers hoping they’ll turn around? Let’s just say it’s a fast way to wipe out your gains.
Riding the Momentum Wave
Momentum trading is where it’s at for me. It’s all about jumping on an existing trend rather than trying to predict reversals. And speaking of reversals, while trading against the trend can be tempting for some, it’s a risky move for beginners.
Backing up my strategies are over 24,000 day trades and a hefty $12.5 million in profit—although, as I’ve said, my results aren’t typical. So, how does one become more confident in this game? Practice, experience, and constantly reviewing your trades to find areas for improvement.
Final Thoughts
Day trading can be a lucrative endeavor, but it’s no walk in the park. The averages you’ll see splashed around the web don’t paint the full picture of the risks involved. From my own experience, I can tell you that discipline, strategy, and a bit of humility go a long way. Whether you’re just starting out or looking to up your game, remember: tracking your moves, understanding market psychology, and knowing when to step back are key to enduring success.
And that’s the scoop on day trading incomes and what it takes to cut it in the market. Here’s to making informed trades and progressively stepping up your game. Happy trading!
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Warrior Trading was founded by Ross Cameron in 2012. Today Warrior Trading is a thriving community of thousands of day traders learning to trade under the curriculum designed by Ross.
You can learn more about Ross Cameron on his websites, RossCameron.com and Tirekickers.com
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