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Day Trading: Can I make US$ 200K a Year ?

Yes, you can surely make US$200,000 a year by day trading. In fact, you can make much more than that. It would depend on your initial capital, the extent of your knowledge of technical analysis, the experience of making day trades, and the annual earning percentage. Usually, most traders try to outperform the general market. So, you can trade on multiple financial assets (stocks, gold, currency, cryptocurrencies, and others) to earn money to reach your financial goal.

 

Limitless Potential of Income from Day Trading

If you have an initial capital of US$100,000, you have to earn at an annual rate of 20% to reach your goal of US$200K per year income. Depending on macro-economic factors, traders usually expect to earn around 3-to-5% annually.

However, with the availability of new financial assets such as cryptocurrencies (especially Bitcoin) and with the appropriate use of technical analysis, the potential and possibility of your yearly earnings are limitless. A simple statistic will clarify why the day trading of Bitcoin, other cryptocurrencies, and stocks can make you rich. This will help you retire early with a regular stream of big fat income.

Bitcoin Performance in 2020

  • November 2020 Monthly Performance: Bitcoin price has increased by 37% in November 2020, which is almost 3-times more than the 13% increase of the MSCI World Index for securities. If you traded or invested in the cryptocurrency market instead of the stock market, it would have made you rich faster. Cryptocurrency trading or stock trading can help you reach your yearly goal of US$200k faster.

 

  • Yearly Performance Till Date: Bitcoin price has outpaced all other financial assets in 2020.
  • Bitcoin price (BTC/USD) has increased by 170% till-date in 2020.
  • If we consider the yearly lows after the COVID19-induced crash in March 2020, Bitcoin has rallied more than 400% till now.
  • BTC is breaking a new All-Time High (ATH).
  • The gold price has increased by 17% till-date in 2020.
  • MSCI World Index for securities has increased by around 12.7% till-date in 2020.

Day trading : What you would have earned with bitcoin in 2020

Therefore, Bitcoin’s year-to-date gain has grown 10-times faster than both Gold and Securities. These are the reasons why more and more retail investors are investing and trading in the crypto market instead of the stock market.

This means you could have earned US$17,000K from an initial investment of US$100K at the very beginning of 2020. If you made the US$100K investment just after the COVID-19 induced crash, you could have earned US$40,000K till now.

If you want to become rich by trading, first create a portfolio of financial assets including securities, precious metals (like Gold), cryptocurrencies (like Bitcoin and Ethereum), currencies, debt instruments, and many more. This will help you strike the right balance between limitless income potential and proper hedging of risks.

Therefore, it can be said that you can make a decent profit out of day trading and become rich in no time, provided you are successful in using the right mix of technical analysis, momentum trading, timing, and experience.

How to Start Day Trading?

Before I say more about how to start day trading, it is very important to note some of the most important things to become successful as a day trader.

  • Always keep in mind that you can be successful as a day trader only when you take it seriously and do the research properly, which includes technical analysis and chart reading.
  • Day trading is not a hobby. It is more like a job, where you need to remain objective-oriented, focused, diligent, and free of emotions while trading. You must trade through a reliable and renowned brokerage account for secured trading.

Before going deep into understanding day trading, it is important to know what it really is.

What is Day Trading?

Day trading is a practice of trading where a trader buys and sells a financial asset within a single trading day. He/she doesn’t hold and take delivery of the asset. Successful day traders thrive mainly in forex, stock, and cryptocurrency markets to skim profit. You can also start trading index funds, mutual funds, gold, and other assets on a daily basis for making US$200,000 in a year.

They are generally well-informed, experienced, and well-funded traders who earn a profit on small price movements of highly liquid stocks, currencies, and cryptocurrencies (like BTC, ETH, LTC, XRP). The day traders use technical analysis, high amounts of leverage, and short-term trading strategies to skim profit.

Always remember that you can lose money during day trading as it is a speculative move. However, with the proper use of fundamental analysis and technical analysis, you can increase your profitable trades. This will ultimately help you reach your yearly goal of earning US$200,000.

Popular Day Trading Strategies

Popular intraday trading strategies used by successful day traders are:

  • Scalping: Day trading professionals capitalize on small price movements of highly volatile stocks to make numerous small profits throughout the day. Keep checking market data throughout trading sessions on a daily basis for making successful day trading.  


  • Range Trading: This is one of the most popular trading strategies used by traders. The range traders rely heavily on technical analysis, charts, and experience. They use support and resistance levels for buying and selling stocks/forex/crypto.


  • News-based Trading: The day traders using this trading strategy take advantage of the heightened volatility in the market, caused by a certain event or news.


  • High-Frequency Trading (HFT): Sophisticated algorithms are used by the traders to exploit small/short-term inefficiencies of the market.


  • Automated Trading: Some experienced day trading experts usually put their trading on autopilot to automate the process, and earn money while they are sleeping. These trading tools scan the market in real-time and automatically trade on behalf of the day traders. As crypto and forex markets keep on trading 24×7, this is the best strategy for successful day traders because it enables them to keep on making passive income even when they sleep.

Choosing your day trading strategy:

You can choose any day trading strategy as per your comfort level or use a mix of these trading strategies to get maximum return. Learn trading online and also the skills of the trade to beat other traders and outperform the market.

To rip the maximum benefit, try to be a pattern day trader. These day trading professionals make 4 or more day trades in just 5 business days through a margin account. During these 5 business days, pattern day traders usually trade over 6% of the margin account’s total trade activity.

In addition, you can also take advantage of the swing trading style. This will help you make short-to-medium-term profits. In the case of swing trades, you have to hold stocks, cryptos, or other assets for few days to several weeks.

To make maximum profit, try choosing prospective penny stocks. This will help you get maximum profit in the least time, helping you make US$200k within a year.

What does it Need to Become a Successful Day Trader?

A day trading professional can be successful if he/she has the most of the following characteristic features. Or when he acquires them with his work in trading an himself. Let’s check them out:

Psychological features for day trading:

#1 Knowledge: Successful day traders should be adept with the latest trends of the market, news, and events such as the economic outlook, the Fed’s interest rate plans, financial figures of selected companies/cryptocurrencies/forex, etc. Always try to learn new things about trading, be it fundamental analysis or technical analysis. You can learn trading courses for beginners to trade like a pro and make knowledgeable moves while trading.

#2 Get Disciplined, Stay Cool, and Stick to the Plan: Stock, forex, and cryptocurrency markets can test your nerves. Try to remain emotionless while day trading. Don’t get impatient, fearful, or hopeless. Stay cool and stick to your trading plan so that you can act at the moment when the opportunity comes and earn big. As they always say: “Plan your trade and trade your plan.”

#3 Start Small, Be Humble: If you are new to day trading, tread with caution because you have to make quick moves to make money. You should get a feel of the trading style first by investing a small amount of money. Try to trade fractional shares and invest smaller dollar amounts so that you don’t lose a lot of money at the very onset.

Adopt the right day trading practices

#1 Allocate Fund: Always keep aside a certain fund or capital for day trading, which you can risk on each trade. You should risk less than 1-2% of the fund per trade. Suppose, you have US$50,000 in your trading account and you decide to risk 0.5% of your fund on each trade. So, for a day trading professional, the maximum loss per trade will be US$250 (5% of US$50,000).

#2 Time: Day trading involves skimming profit from a small movement of prices. So, you have to spend most of the day before the trading terminal to spot opportunities. If you have limited time to spare on day trading then either avoid it or put your trading on autopilot and let the AI-driven bots scan the market in real-time and automatically trade for you.

#3 Cut Losses: When a market falls, it can break limits too. During March (due to the COVID-19 crisis), both the crypto market and stock market fell sharply. To minimize or restrict the percentage of loss, always use market orders or limit orders.

#4 Profit Percentage: Always have a clear idea about the profit percentage you want from a trade. You can make small profits on multiple trades to minimize your risk and also make a considerable earning at the end of the day.

Always buy or sell stocks/cryptocurrencies through renowned and reliable and renowned trading accounts. For funding your account, you can use credit cards, debit cards, or bank transfers. Always invest a certain percentage of your investable money for long-term investment, having 20-30- years horizon. This can be done most efficiently by adopting the Dollar-Cost-Averaging (DCA) method in retirement accounts.

Is it Possible to Make Income Automatically from Trading?

Yes, you can make income automatically from trading. You can put your trading on autopilot with a highly advanced algorithm that opens or closes positions. The crypto bots will scan the market in real-time and will trade for you automatically. Used correctly, automated systems can allow you to generate substantial profits.

Why Choose NapBots?

The best thing about this AI-driven bot is that it helps you earn money 24×7, even when you are sleeping. It gives you an edge over other investors as it enables the bot to book profits on your behalf when other investors are sleeping.

With the help of NapBots.com, you can connect to major exchanges such as Binance, Bitmex, Bitfinex, OKEX, Kraken, Bitstamp, and Bitpanda. Even with zero skills, you can start trading like a pro and earn money with this unique trading tool.

Before you take the plunge, you must understand that crypto trading bots are not human. They are AI algorithms, which involve lines of codes and machine learning. When you are going for autopilot, you must know that you are allowing AI machine learning trading tools to handle your crypto exchange account. Therefore, you should use an automated trading bot accordingly.

NapBots has a proven record of providing great returns to investors. However, it doesn’t guarantee profit all the time. As the crypto market is very volatile, you should expect to see losses from time to time too. If you’re not ready for that, you shouldn’t get into crypto trading in the first place.

If you are a novice in the cryptocurrency market, you can put your cryptocurrency trading on autopilot, get excellent ROI, and keep earning your passive income round the clock, even when you are sleeping. However, always keep in mind that NapBots is not a get-rich-quick scheme. You can have a look at the reviews on NapBots to make a wiser decision.

Why Choose NapBots?

  • NapBots offers complete trading automation solutions through the use of its own tested trading strategies; offering quantitative trading strategies previously reserved for hedge funds to the public.
  • The setup and installation process are easy. So, the non-experts can also use it. The simple and special approach of NapBots helps it provide you with excellent ROI.
  • The team of professionals behind NapBots has extensive experience in the financial market. They have put their years of experience in place so that you can easily automate the management of your funds with no technical skills. This service can run 24/7 and work as your passive source of revenue even when you sleep.

Related Resources:

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