How much do good day traders make?
Often new traders or aspiring day traders make the mistake to
judge other traders on how much money they make as a day trader. I
must admit when I was a new day trader I thought the measure of a
good trader was how much they made as well and turned my nose at
videos on YouTube about day trading that showed a trader that was
consistently profitable making about $500 a week on average. This was
a huge mistake because as day traders especially new day traders our
focus should always be on consistency and while we cannot be green
every single day because no one has a 100% accuracy the goal is to be
consistently profitable as we grow our process. So in this article, Im
going to tell you why I do not believe you need to worry about how
much money a good day trader makes because what makes them good
isnt how much money they make.
What Makes A Day Trader Good?
A trader that consistently makes on average even $50 a day could teach
a new trader a lot of valuable lessons because trading is about finding a
process that works for you then mastering it until you can consistently
be profitable then scaling up from there but scaling up from there does
not make you go from $50 day to $500 days right away because the
other aspect of trading and some might say including me the most
important and hardest part of trading is controlling your emotions. You
might be risking $20 to make $50 and now to make $500 you might
have to risk $200 that’s a huge jump in a risk profile that your emotions
might not be able to handle So the logical thing to do is go from risking
$20 to risking $30 and so forth.
Why being a good trader is not all about "How much you made"
The point of that story above is to show you that being a good trader has nothing to do with how much profits you make but how consistently you make a profit at all and how well you manage your risk. The traits of a good trader that one can learn from are how consistent are they and how well do they manage the risk they put on per trade.
In other words, the measure I use to know if a trader is good is not how
much a good day trader makes and what cars they are driving but
rather how consistently profitable they are and how they handle
emotions and manage risk. What good is making $8000 trading this
week only to lose $7000 trading the following week due to a lack of
discipline and risk management? Anyone can put on big size and trade
and make a huge trade but not everyone can manage risk, emotions,
and trade consistently. So, to me personally I do not measure how good
a trader is by how much money they make but how consistent they are
as a day trader and how they manage their risk in each trade.