I have gotten several emailed questions for awhile regarding how much is needed to start trading. I'll answer it here again, because you might have the same question.
Question:
Hi,
Just read your blog and was wondering if you had time to answer a question. Is it viable to make a $150K+ yearly income from day trading? I am currently an Electrical Engineer with a good understanding of the stock market, margin investing, etc.
I would like to pursue day trading as my next career move, but have not been able to find reliable data on income potential and working capital requirements.
Any realistic data you can provide would be very much appreciated.
Thanks in advance,
Rick
Answer:
Hi Rick,
Most traders will think that you need well over mid six figures to start if 150k is your goal, assuming you're any good. But i think it's an odd thing to say you want to make a certain amount per year. First, you need to see what youre capable off, i.e. what has been your 5 year annualized return?, in order to extrapolate how much you can make and how much you might need to start with. Everybody trades differently, have different risks/tolerances, different approaches, etc. Some are better traders than others. Some approaches (I think mine is the best) are way better than others. Pure daytrading where you're 100% cash by end of day is a difficult way to approach the market, that i can tell you.
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** Find out how to make more money (without trading risky instruments like futures, options or pennystocks) in the stock market with less initial capital. Approach the market the right way and you only need significantly less starting capital than others. Guaranteed to be the best way to tackle the market! click here
Question:
Hi,
Just read your blog and was wondering if you had time to answer a question. Is it viable to make a $150K+ yearly income from day trading? I am currently an Electrical Engineer with a good understanding of the stock market, margin investing, etc.
I would like to pursue day trading as my next career move, but have not been able to find reliable data on income potential and working capital requirements.
Any realistic data you can provide would be very much appreciated.
Thanks in advance,
Rick
Answer:
Hi Rick,
Most traders will think that you need well over mid six figures to start if 150k is your goal, assuming you're any good. But i think it's an odd thing to say you want to make a certain amount per year. First, you need to see what youre capable off, i.e. what has been your 5 year annualized return?, in order to extrapolate how much you can make and how much you might need to start with. Everybody trades differently, have different risks/tolerances, different approaches, etc. Some are better traders than others. Some approaches (I think mine is the best) are way better than others. Pure daytrading where you're 100% cash by end of day is a difficult way to approach the market, that i can tell you.
----------------------
** Find out how to make more money (without trading risky instruments like futures, options or pennystocks) in the stock market with less initial capital. Approach the market the right way and you only need significantly less starting capital than others. Guaranteed to be the best way to tackle the market! click here