• Day Trader Resources

Day Traders, Get Money to Day Trade, Start Day Trading

Updated: Mar 7

Day traders can make a significant income through their trading activities. Successful traders can live comfortably from their gains. Highly successful ones make even more money. However, your earning potential is determined by how much you can afford to use when you start day trading. Of course, the market you trade in will have an impact, and your strategy can help boost your success. But, if you want to make money while day trading, you first need to get substantial money to day trade. Still, using your own funds? Here’s why it’s hindering your gains:

You can’t make money

The Pareto principle, or the 80/20 rule as you know it, also applies to the trading sector. As a day trader, the majority of your profit comes from only a single currency pair or even stock.

While the ratio can vary a little, the general rule remains that only specific assets generate most of your income. To put it in simple terms, if only 20% of your trading is profitable, what happens to the remaining 80% of trading? As a day trader, you understand that identifying the most profitable trades can take time and effort. Can you truly afford to spend funds on assets that are not profitable to define your winning strategy? And if you do, will you still have the remaining funds to apply the 80/20 Pareto principle?

High risk and fear

Day trading is growing in popularity for investment savvy adults looking for a way to grow their income. The gain potential is the biggest appeal, as day traders can experience almost immediate gains. Until investment strategies, there is no delay. But you can’t make money if you are not comfortable with risk. Whether you start day trading or you’re an experienced investor, it can be one of the most complicated and risky investment strategies. If you misread the market or if sudden changes occur before you can react, you could end up losing more money than you invested.

The slow account building process

Day traders typically start with a small account, which they build up over time. It’s worth mentioning that some markets will not allow you to trade unless you have sufficient funds. For U.S. stocks, you need to have at least a $20,000 account to start trading. Unfortunately, most day traders will often start their journey with less significant amounts. A small account affects which markets you can enter and your gain potential, and your strategy. Your activities are limited to low trades and low futures contracts as a result of your small margin requirements.

Low personal funds

Day trading comes with transaction costs, which can be costly when you are using your own funds. Hitting a big win will also cost you funds, even if you can afford to pay. But the process of using your own money exposes you to debilitating consequences when you’re working with limited personal funds. Even a minor loss could drive debts in your day-to-day life.

Can day traders be successful when they use their own money? The answer is simple: How much can you afford to lose to maintain your day trading account and make a win? If the thought gives you a cold sweat, it’s time to consider other solutions to get money to day trade. Joining a prop fund broker that enables you to trade with secured funds without using your own capital is the first step to turn daily risks into win potential.