How professional day traders really make money in the stock market is a question that I get quite frequently. There is an aura around Wall Street and the stock market that involves a lot of money. If you can beat them join them right? As I continue to get more and more questions about day trading I plan on explaining a bit more on what day trading is and how I make a living doing it. The financial system is significantly more complex than it used to be even 10 or 20 years ago. The basic premise behind why the stock market exists is because companies need money to grow. After a company gets to a certain point they need more money to grow. A private company turns into a public company and that is when a company first appears in the stock market. The stock market can be compared to eBay. The stock market is essentially the same thing but with companies that need capital money to continue growing. Eventually a company gets so large that they stop lending money from their friends, local banks, and family. They go public to receive a cash infusion they need to keep growing and compete in their industry. Once a person initially invests in a company via stock market we become part owners of the company. Stock markets deal in shares of stock. This is relative because there are actually millions of shares of stock for certain companies. Every company is placed in a group of stocks called stock indexes much like categories on eBay. If we want to purchase a camera or laptop we will look in the electronics section. When one wants to purchase a new bed we look in the furniture section. Categories on eBay vary a bit to stock indexes but to the untrained eye we can look at it the same way. The NASDAQ composite index for example is mostly known for having technology stocks. So once a company goes from private to public we begin to invest in it. The left over shares have value and the general public decides what that value is based on the stock market. With anything that has value one can determine a future value. This is the reason why the stock market exists and the fundamental way that professional day traders really make money in the stock market. In order to determine the value of a stock or company traders and investors used two typical models, fundamental analysis and technical analysis. The concept here is to understand a company is in a good position to grow and increase value. Once a company increases its value it pleases investors and professional traders. A trader or investor would have purchased the stock at a lower price and since the company has quick higher value higher priced stock it makes a person money. Technical analysis does not include any of the above. Technical analysis strictly involves looking at a chart with a set of indicators and recognizing patterns. One random example would be if a forex company goes up during a certain time of year. If we assume that Apple will make more sales during the holiday season then we may be able to assume that its stock price will go up during that time of year. A professional trader that is looking at Apple stock might look for patterns in changes in price during a specific date or time of year. It simply involves looking at a chart and making decisions. Professional day traders have advantages and disadvantages with both types of analysis but it also depends on what kind of trader a person is. If one is looking to invest in a company long-term we may look more at fundamental analysis. I prefer strictly a technical analysis forex due to the uncertain economic times we are in. I simply prefer to not have my money in the markets when something erratic or volatile can happen. It also takes a lot of work to look at news and connect the dots with all of the different opinions and news sources online. Instead I turn on my computer and begin looking at a chart, do a few minute pre market analysis, and begin trading. Most people that we call day traders look at the market which strictly technical analysis. They are normally classified into three different types of traders; scalpers, intraday traders, and swing traders. All three types of professional day traders are looking to do the same thing, make a profit based on a different in value. The only difference between the three is the amount of time they are involved in positions. Professional day traders that make money in the stock market with high frequency and lower profit are called scalpers. The goal is to take advantage of small inconsistencies in the market in addition to quick movements changes in value in a matter of seconds or minutes. A scalper may only be in a position for five or 10 seconds or possibly a minute. A scalper also tends to place a higher frequency of trades and as their profit is normally lower per trade. A higher frequency of positions entering and exiting trades is needed in order to make higher profits. Professional day traders that make money in the stock market on a daily basis are considered intraday traders. Intraday traders are typically in positions from within a few minutes to possibly a few hours. Intraday traders are typically not as high frequency as scalpers but due trade more often than swing traders. I would consider myself an intraday trader as I normally trade between an hour or two a day with TheDay TradingAcademy. Most quick our traders make their money within an hour or two a day. Our live classes are normally a few hours as well since the best activity in the markets come within the first few hours. Professional day traders that make their money swing trading involves a much longer period of time. A swing trader uses fundamental or technical analysis but stays in trades over a few days or even weeks. To compare the differences between a scalper or intraday trader, a swing trader may be in a position for a few days or weeks whereas an intraday trader never holds a position overnight. This swing trader term infers that someone plays the swings in the stock market rather than the quicker movements. There are also much longer term day traders called position traders which hold trades for several weeks or even months. The whole basis of a professional trade day trader making money in the stock market involves accurately gauging the value of a stock. Since the financial system has changed it has become more complex and there are more investment vehicles than just stocks to invest in. The basic premise of making money in the stock market is simple, gauging the value of something and making a profit when your estimation was correct. Check out the Day Trading Academy YouTube to see how we actually trade. One of the most important things to understand is that a day trader can make money when the market goes up or down. If we are estimating the value on something we can also estimate that the forex is going down and make a profit on it. Day traders can actually make more money when the market is going down, when the economy is in a recession, or when there is a crisis. One of the reasons I love to make a living day trading is because we actually make more money and an economic downturn and a crisis than we do when things are going well. I do still hope the best for you! So there you have it! If so, please join over 50, people who receive exclusive weekly travel tips. Click the red button below! Hello Marcello, are you using NinjaTrader for ES trades? Have you heard any problems with AMP Global Futures? And have you had any issues of Internet dropped and then losing your Stop orders? I just started trading and started running a blog about my discovery. Thanks for sharing the basics here. Dear Marcello, first of all I want to thank you for sharing your knowledge about trading over here. I want to know as to what interval chart referring will be best for an intraday trader, 1 min, 5 min or 15 min? Which indicator to follow to enter and exit with minimum profit but no loss at all. Only win win trading let the profit be less. Your valuable response will be highly appreciated. We use tick charts: It is not difficult if true, rigth? You have to at least have some capital at first. It really depends on what market you want to money trading in. Sorry to be so vague but it is important to know what market you are trading before answering that question. This is such bullshit. No one makes money and its a scam. Look into Value Investing and investing of the long term. I could easily refer you to more than 5 people and more that are now making a living day money. All through the techniques that I taught them. I am yet to see a day trader make a decent money in the market. It is always one step forward then one step backward next day kind life. I agree long term fundamental investors make real money in the market. But then it is not sexy right? And you need years of hard work horror to make your riches. But that is only way to make reliable and lot of money in the market- Long term, value style, fundamental investing. Marcello, What were the two platforms u recommended? One was Tradestation and? Which one do u recommend? Stewart I would actually recommend NinjaTrader. I still us TS but for the most part I would recommend NT. How do you use Ninja Trader, is there a tutorial for beginners. I just get a blank program with no data information on it. How do i get market data? I recently discovered your article in the BBC news. Travelling is my main passion and the reason I have began to research into day trading. I enjoy going to festivals abroad and I have a decent enough job that pays well so I can travel a bit but not for as long as I would like so im always being pulled back. Also on your travels have you came across any festivals in South America you would recommend? I plan on going to brazil next year for a festival there and looking for other ones in the neighbouring countries. Declan find out more about trading here: For the trading you can see the post here:. I decide to sell them. If the stock is If there are fees involved I doubt any money would have been made on such a transaction. I would love to be what i am, all i need is understanding the basic concepts of trading,market approach,what time what trade works. Hey Dedric… how can check out our sister site at http: Why would one want to waste their time and talents on this??? Go and plant a tomatoe plant or work on a scientific project. You know, do something that has something to do with reality. I can buy a farm and find more efficient ways to grow tomatoes. I can even build free schools around the world. You know, you have no idea what you are talking about. You can make money when the market goes up or down Ishan. Most of them is by the fees being charged to students. We do things a bit differently where we use those funds for the in house traders. I think I m one of best intraday traders amongst the people I know. Can you please suggest any alternative?? Most of our traders only trade from hours a day. Check out our sister site http: Quick to know more about stock trading and how to make money by trading on stock market. I want to also how quickly can I get on board to start making good money. Find out more from our sister site: I have many years of experience in financial services experience just as a FYI, so here it goes: Keep in mind that you will need at least a few extra thousand in your account just as an emergency, to pay bills, rent, and other personal expenses in this case traveling too?? Yes, you may have a few good days, weeks, or even months, starting off. You cant just learn how to trade with this stupid course money. Years and years of experience are needed. The amount that you are stating is for STOCKS. Not a market like futures. I have more than a handful of traders that actually day trade for a living. It is possible to make money. Money it was easy everyone would do it. We have had traders that have gone live in just 3 weeks. It is a skill that we have to develop. You sound very jaded against the industry I would recommend you do a bit more research before making comments that are incorrect. Hi Marcello, what kinds of people make the best day-traders? For example, are they less risk-averse than the typical person? Or maybe they are more numbers oriented? That is actually a fallacy Terry because I have worked with math oriented people, programmers, and even a legally blind person in the UK, painters, and firemen. Discipline, patience, and perseverance, are some of the most important things when it comes to day trading. How exactly do I get stared on day trading? What special programs do I need to download? And is it wise to trade in Canadian dollars? Can you please help me get started? Take a look at our sister site: Which is best day trading or investing. I know I would have made them. So what is truly best and fastest way to build wealth? Day trading is really the fastest way to make gains Shawn. Day trading is short term intra day where you get in and out the same day instead of waiting weeks or months to get out. Is it possible to start for practice sakes with an amount of and generate small daily profits while honing ones skills. My goals are to develope into a day trader using a mix of intra and swing trades. What do you think would be the best approach. Or is the amount just to small for this goal. How do you trade from outside the US? I normally hold onto a stock for hours to days. However the issue I have is with my k…through my employer. It takes 3 to 4 days to get my money back after selling stock. Is it like this everywhere? Or is there other websites where I could buy and sell stocks and turn around and do it all again in same day to maximize profits. Maybe someone here on the site can chime in. Glad that I landed up here. I always dreamt of life like yours, financial freedom, location freedom and time for everything. How do I take your classroom course. I am not located in your country, by any chance in near future you planning to conduct classroom training in Asia. I have how trying to day trade for 7 years with no success. But I love it. I want to quit my job someday make travel while day trading for a living. My biggest issue is that I never met any other trader who is successful that is not trying to sell me something. I am sure they are out there, I just never met one. I have been in several trading rooms and I never see a student that is successful, only the instructor. However I am not giving up on my make. Thanks for your time. Or is that pretty unlikely? I got into stocks about a week ago and have completed about 7 days playing intraday eachday. Its more like One day ahead and One day back kind of system. This eats away your real money and may make you worse than a begger. Your email address will not be published. Join over 50, people make receive exclusive weekly travel tips. Are you ready for your trip? Share your name and email with me and I'll send you WT inside secrets-travel, contacts and tips, learn how to day trade and travel the world, and much more. Just enter your email below and we will send it right to your inbox. Home Marcello Arrambide Travel Blog Trading Blog Photos Top 5 Marcello Arrambide Contact. How Professional Day Traders Make Money In The Stock Market By Marcello May 28, What Day Traders Really Do…. What our day trading charts look like. An example of two reversal patterns which is part of technical analysis. Types of day traders. Like What You've Read? July 5, at 6: September 25, at 9: September 27, at 2: December 23, at 9: Do you make a good living? Can you teach me? I want to quit my job and day trade fulltime! December 24, at October 25, at 2: November 8, at 4: February 25, at A very informative and simplistic version for us not in the know. April 21, at 6: May 28, at 1: June 12, at 3: June 23, at Hi Marcello, What is a safe amount should I start off day trading with? June 23, at 3: March 26, at What do you recommend for Stocks: March 27, at 8: July 17, at 1: August 6, at 2: August 8, at 6: January 2, at 9: December 2, at 3: October 30, at August 10, at August 11, at I agree forex you I think that everyone can learn how to day trade if they wanted to however. August 20, at 1: August 20, at 4: September 23, at 5: November 10, at September 2, at 6: For the trading you can see the post here: September 11, at Hey Marcello, great article. Just a quick question. Is the following scenario possible? Is this what day traders do? September 17, at September 18, at 1: September 23, at The actual math is irrelevant he was discussing the theory of how it works Julesga. November quick, at Dear Sir, How a day trader earns more in market downtime?? November 5, at 7: December 3, at 8: December 9, at 7: March 2, at March 4, at March 3, at 1: April 16, at May 23, at 7: April 17, at 9: May 9, at 5: May 21, at Hi I loved this because I have been interested in trading indices going long and short. July 17, at 9: November 8, at 5: September 8, at 7: September 25, at 2: October 3, at November 28, at December 6, at June 21, at 2: June 24, at 2: December 16, at 2: January 20, at 3: I can to invest upto can you tell me how many I can earn par day and how. January 21, at 6: January 24, at 8: January 26, at 5: April 8, at how April 21, at June 6, at June 13, at 5: June 17, at 9: June 18, at Incorrect Bojan… anyone with an internet can trade any market in the world. August 9, at August 10, at 7: September 16, at September 28, at November 7, at December 16, at March 1, at 5: February 9, at 7: May 3, at Post a Comment Cancel Comment Your email address will not be make. Get Free Updates Join over 50, people how receive exclusive weekly travel tips. Want to learn how to day trade? Click here to get our free Day Trading Kit. About Marcello Arrambide I've traveled the world now for roughly 4 years I have visited roughly 80 countries and all 7 continents. I have also lived in 12 countries spanning 5 continents Popular Posts Curious of How Day Trading Works? Recorded Video of One Our Best Live Market Classes. Follow Me on the Web. Search WanderingTrader Search for: Learning More About Travel Advice. Over 51, incredible people have subscribed to my newsletter for travel advice - you can too! Click Here To Subscribe.
Well, as an LA-based jazz musician, I can tell you this is a totally accurate presentation of the club scene in Los Angeles (and it mirrors the scene in most any city that has a large and young musical population, like NYC or Boston).
Even though fast food industry offers employment opportunities to many people, it is vital to put into account the detrimental effects of these restaurants to the well-being of the society at large.
Late-night editing, researching and re-writing is customary, but seeing my articles in print makes it all worthwhile.
Well, as an LA-based jazz musician, I can tell you this is a totally accurate presentation of the club scene in Los Angeles (and it mirrors the scene in most any city that has a large and young musical population, like NYC or Boston).
Even though fast food industry offers employment opportunities to many people, it is vital to put into account the detrimental effects of these restaurants to the well-being of the society at large.