Profile of a regular day trader: Day trader salary
A day trader’s lifestyle is quite struggling and stressful and most importantly risky since day trader salary is not fixed. Rather they have to risk a security deposit that is paid up with brokers or companies. Trading is very serious business that needs patience and preparation to go through the tremendous pressure. But at the end of the day money is everything to pay up all the hardships and this is why considering the struggles of the trader, it naturally triggers the question about their salary or earnings.
In this dynamic profession, a day trader is involved with a range of activities throughout the day. The first task of the day begins with checking the performance of Dow jones, European indices, Asian markets, SGX Nifty in Singapore so that the market situation might talk about upcoming changes and thus make decisions on shares of stocks. The basic job of the trader is to modify stock lists of their portfolio and observe the data to add or remove any stock. Main purpose always remains in earning higher return. For high return day traders take high risk and analyze the market for the best portfolio structure.
Every trader seeks to ticker monitor reading for the price and volume fluctuations and this is where they need technical knowledge. Day trader salary depends upon several factors such as experience of the trader in the market and ability to analyze the appropriate and high return portfolio with low risk, and the account size. If the account size is larger, the larger the trader can trade and remain in a position of size parameters.
A typical trader who has experience generally engage in making long and short trades within the large trading account and he/she is capable of doing huge trades.
However, for A novice and new trader, income is little complex process. For example, a novice trader has a small account and he/she decides to buy 200 shares of Nicos at 54.50 on the morning. Until the GAS (Nicor) gives a bar close, the trader continues the trading and finally ends up in selling 200 shares at 54.75. The profit is $54.75-$54.50=$.25. The profit is not much the cost of investment is also low where the trader has used less than $11,000. So keeping the trade size lower and then making money out of the investment is generally the primary goal of the novice trader.
Therefore, for a good and handsome income, traders need to be consistent and protective for the account. As long as the trade size grows traders should focused on this since it leads to a good day trader salary.