How Much Do Day Traders Make Per Day? The Shocking Truth Revealed

Ever watched those flashy YouTube ads where some guy in a Ferrari promises you can make thousands daily by day trading? I’ve been there too—dreaming of quitting my 9-to-5 and making bank from my laptop But what’s the real truth about day trading profits? Let me break down the cold, hard facts about day trader earnings without the hype

The Brutal Reality of Day Trading Income

Let’s cut straight to the chase—according to multiple studies and broker data the truth might shock you

• Approximately 97% of day traders lose money over time (Brazilian Securities Commission study)
• The average net annual return for day traders is around -$750 (yes, that’s a LOSS)
• Less than 1% of the most profitable day traders from one year remain profitable the next year
• Active US day traders underperform market indexes by an average of 10.3% annually
• Around 70% of retail forex day traders lose money each quarter (SEC report)

These stats ain’t pretty, folks. The glamorous lifestyle you see promoted on social media represents a tiny minority of traders. In reality, most people who try day trading end up with lighter wallets, not heavier ones.

What Can Successful Day Traders Actually Make?

For the small percentage who do make money, daily profits can vary wildly:

Potential Daily Returns (For Successful Traders)

IMPORTANT: These figures represent GROSS profits before:

• Trading commissions and fees
• Taxes (which are higher for day traders due to short-term capital gains)
• Technology costs
• Living expenses

Plus these numbers assume you’re actually winning consistently—which most traders don’t!

Why Is Day Trading So Damn Hard?

Several factors make day trading one of the toughest ways to make money:

1. Short-term Unpredictability

Trying to predict price movements in minutes or hours is extremely difficult—even for pros with decades of experience. Intraday price moves are often driven by news and emotion rather than clear trends.

2. Psychological Warfare

Day trading is a mental game where emotions can destroy even the best strategy:

• FOMO (fear of missing out) leads to impulsive trades
• Loss aversion makes you hold losing positions too long
• Overconfidence after a win streak can lead to disaster
• Revenge trading to “make back” losses usually makes things worse

3. Competition from the Big Boys

You’re not just competing against other retail traders—you’re up against:

• Algorithmic trading systems
• High-frequency trading firms
• Professional traders with million-dollar technology setups
• Financial institutions with deep pockets and insider information

4. Costs Eat Your Profits

The more you trade, the more you pay in:

• Trading commissions (even with “commission-free” brokers)
• Bid-ask spreads
• Slippage (price movement between order and execution)
• Taxes on gains (usually at higher short-term rates)

What Do You Need to Even Try Day Trading?

If you’re still interested despite the brutal odds, here’s what you need at minimum:

Capital Requirements

• $25,000 minimum for pattern day trading in the US (regulatory requirement)
• Realistically, you need much more to generate meaningful income and withstand drawdowns
• Most successful day traders work with $50,000+ accounts

Essential Tools

1. Professional-grade trading platform with real-time data
2. Fast, reliable internet connection with backup
3. Multiple monitors for chart analysis
4. News feeds and market scanners
5. Risk management software

Skills and Knowledge

1. Deep understanding of market mechanics
2. Technical analysis proficiency
3. Risk management expertise
4. Emotional discipline
5. Experience through paper trading and small live trades

Day Trading vs. Long-Term Investing: A Reality Check

Let’s compare these two approaches honestly:

When you look at it objectively, long-term investing is the more reliable path to wealth for most people. Day trading is essentially a professional career that requires exceptional skill, discipline, and resources.

Factors That Influence Day Trading Profits

What separates the tiny minority of profitable day traders from everyone else? A few key factors:

1. Trading Strategy

Successful traders develop and refine specific strategies with:

• Clear entry and exit rules
• Position sizing guidelines
• Risk parameters (maximum loss per trade/day)
• Security selection criteria

2. Risk Management

Profitable traders are obsessed with preserving capital:

• They use stop-loss orders religiously
• They never risk more than 1-2% per trade
• They establish profit-taking points in advance
• They keep detailed trading logs and analyze mistakes

3. Market Selection

Different markets offer different opportunities:

• Stocks: Require more capital but offer transparency
• Forex: 24-hour market with high liquidity but high volatility
• Futures: Lower capital requirements but complex products
• Options: Leverage with defined risk but complex pricing

4. Market Conditions

Even great traders struggle in certain environments:

• Low volatility periods reduce trading opportunities
• Highly erratic markets can wipe out strategies
• News-driven markets create unpredictable moves

A Typical Day in the Life of a Day Trader

To understand why day trading is so demanding, consider what a typical day looks like:

5:30 AM: Wake up, review overnight market news
6:00 AM: Analyze pre-market data, identify potential setups
6:30 AM: Final preparations, set alerts
7:00 AM: Markets open, intense concentration begins
7:00 AM – 11:00 AM: Active trading period (most volatile)
11:00 AM – 1:00 PM: Market often slows, review morning trades
1:00 PM – 3:00 PM: Selective trading if opportunities arise
3:00 PM – 4:00 PM: Close positions, avoid overnight risk
4:00 PM – 5:00 PM: Review day’s performance, update journal
5:00 PM – 7:00 PM: Study, research, improve strategy

That’s 12+ hours focused on markets with intense concentration and stress. Do this five days a week, 52 weeks a year—it’s no wonder many traders burnout!

My Friend’s Day Trading Experience

I know a guy—let’s call him Mike—who quit his engineering job to day trade full-time. He started with $60,000 and was determined to make it work. Here’s what happened:

• Month 1: Lost $8,000 while “learning the ropes”
• Month 2: Made $3,500 and thought he’d figured it out
• Month 3: Lost $12,000 in one terrible week
• Month 4: Broke even but spent 80 hours glued to screens
• Month 5: Made $5,000 but paid $1,200 in short-term taxes
• Month 6: Lost $15,000 trying to recover previous losses

After six months, Mike had lost nearly half his capital and developed insomnia from stress. He went back to engineering and now invests in index funds. His story isn’t unusual—it’s the norm.

Is Day Trading Worth It?

Given everything we’ve covered, let’s be real about whether day trading is worth pursuing:

Pros of Day Trading

• No overnight risk exposure
• Potential for high returns in volatile markets
• Independence and flexibility of location
• Intellectual challenge and skill development

Cons of Day Trading

• Extremely high failure rate (95%+ lose money)
• Intense stress and potential health impacts
• High capital requirements
• Taxed at higher short-term capital gains rates
• Full-time commitment with unstable income

For most people, the cons heavily outweigh the pros. If you’re still interested, consider these alternatives that provide better risk-adjusted returns:

1. Swing trading: Hold positions for days/weeks instead of hours
2. Position trading: Focus on larger trends lasting weeks/months
3. Automated trading: Use algorithms to remove emotional bias
4. Index investing: Low-cost, passive approach that beats most active traders

The Bottom Line: What’s Really Possible?

To wrap this up honestly, here’s what the data tells us about day trading income:

• Most traders (90-95%) will lose money over time
• Some traders (4-9%) will break even or make modest profits
• Very few traders (1%) will make consistent, substantial income
• Tiny fraction (<0.1%) will get rich day trading

If you’re determined to try day trading, do yourself a favor:

1. Start with paper trading for at least 3-6 months
2. Only use risk capital you can afford to lose
3. Begin with small position sizes (mini or micro contracts)
4. Set strict daily loss limits
5. Have a backup income source

Day trading ain’t a get-rich-quick scheme—it’s more like becoming a professional athlete. A select few make millions, but most who try don’t even make the cut. Be realistic about your chances and proceed with extreme caution.

Remember, boring investing beats exciting trading for 95% of people. Sometimes the least glamorous path is the most profitable one!

What’s your experience with day trading? Have you tried it or are you considering it? I’d love to hear your thoughts in the comments below!

The average salary for a day trader varies depending on experience, whether they are self-employed or work for a firm, and the source of the data, but it generally falls between approximately $90,000 and $178,000 annually.

With a $1,000 account, you can realistically expect to make $10–$30 per day ($1–3% gain) through careful trading, but this can vary widely.

Yes, you can technically day trade with $100, but it’s extremely difficult, comes with severe limitations, and is not recommended for generating significant income. You can only trade with very small position sizes, such as micro lots in forex, and are highly susceptible to losing your entire account quickly due to the lack of room for error.