Making $2K Per Week Day Trading: Is it Realistic?
Many aspiring traders often wonder - "Can I really make $2,000 or more per week day trading?" It's an understandable question. After all, the potential to earn a full-time income with just a few hours of work per day trading the markets is an enticing prospect.
The short answer is YES and NO - it is certainly possible technically to make $2K or even more in a week. However, the road to consistent trading profits is filled with risk and challenges. Whether you succeed wildly or fail miserably boils down to four key factors:
- Account Balance: When day trading, it’s all about leverage and positioning size. Making $2K per week means having sufficient capital to trade enough shares or contracts while also diversifying across multiple stocks or assets. Most experts recommend having at least $30K - $100K or more in your account to day trade for a living. While this may seem like a lot to beginners, remember you can start small and compound your gains over time.
- Risk Management: Managing risks systematically is absolutely important for sustaining consistent trading performance. Set stop losses on every trade and limit position sizes so no single trade wipes out more than 1% of your account. Additionally, scale out of winners methodically rather than clinging onto hopes of even bigger profits. Taking incremental profits smooths equity curves over time.
- Consistency: Making $2K or more week after week requires consistency above all else. Even the best trading strategies stop working if not followed with discipline and emotional control. It takes hundreds if not thousands of trades while diligently tracking stats to refine any edge strategy and execute it through all market conditions flawlessly. Staying in it for the long haul is key.
- Trading Strategy: You must have a methodical approach to identify high probability setups with clearly defined entry, exit and risk management rules. Whether using technical analysis price action strategies or quantitative systems - a written trading plan, journaling results, and continuously looking to optimize is vital.
Master these four core pillars on your path to becoming a successful day trader. While making $2K per week or more is certainly achievable, also be realistic about the commitment, skills and risk tolerance required over the long-term. Trade small while sharpening your skills, then scale up prudently once proven profitable.
