People are fascinated by day trading: Dramatically increasing your own wealth from the comfort of your home computer and never having to bother with "regular work" again.
But what is the truth in this picture? Can you really make money with day trading, what about possible losses and what profits are really realistic? We have the answers!
The most important in a nutshell
- Day trading profits per day can be enormous, but this is not the rule.
- A realistic day trading income for successful traders should be around 1 to 4 % per month.
- Income depends largely on your own skills and available capital.
- The majority of traders make huge losses - it is therefore more important to trade successfully than to make a day trading profit!
How can you earn money with day trading?
Day trading is a financial strategy in which traders make profits in a short period of time (maximum one day per position). What initially sounds simple and very lucrative is extremely complex in practice!
- Traders must correctly predict the price development of shares, commodities, foreign currencies or other assets.
- To this end, they use a variety of key figures and Trading signalswhich require a high level of expertise to interpret.
- A trader does not have to wait for prices to rise - by using a Short sale he can make profits even when prices fall.
- Leverage is used to achieve an attractive day trading profit per day despite the short time frames. They multiply profits and losses.
Despite all Day trading tipssignal services such as TraderFox and thousands of tutorials on the Internet, successful trading is extremely difficult: the majority of traders do not make money, but make losses in the long term!
However, a small group of traders manage to get the right Day trading strategies and a lot of discipline to generate attractive profits. Most calculations of day trading profits per day are based on their successes.
If, on the other hand, the (predominantly negative) results of all self-proclaimed traders were taken into account, the daily profit would be in negative territory!
What day trading profit per day is realistic?
The fascination of trading is repeatedly fueled by breathtaking success stories. For example, a broker from the USA reported on an incredible success achieved by a trader during the COVID pandemic: 30 million US dollars profit in just one day! This is probably a world record for private individuals.
Of course, such results are not the rule. In addition, there are a few points to bear in mind with this (and similar) stories:
- Such mega profits are the absolute exception; most investors lose money in the long term when day trading.
- We must always consider profits in context and examine which Day trading starting capital was used!
- For a trader with hundreds of millions of euros in capital, a profit of 30 million euros per day would hardly be worth mentioning.
- A trader with 100,000 euros in capital who makes 30 million euros in one day, on the other hand, would probably be the most successful trader in the world!
Day trading profit should therefore always be seen in relative terms. As absolute figures are not meaningful, we have to look at the percentage achieved instead:
- A look at the statistics shows that successful traders earn between 1 % and 4 % per month.
- This corresponds to daily earnings of 0.033 to 0.13 %.
- You should also bear in mind the different trading times. So you can Day trading with shares for example, only during trading hours, whereas forex trading is possible around the clock.
Using these figures and taking your personal capital into account, you can also calculate the potential profit from trading.
For example, if you have assets of €100,000 at your disposal, between €1,000 and €4,000 per month would realistically be possible.
Calculated over a year, the amount would add up to between €12,000 and €48,000. At €4,000 per month/€48,000 per year, it is already possible for many traders to make a living from day trading as their main activity!
How do I calculate my day trading profit?
Have you started trading and want to calculate your profit? Or are you planning to start and want to calculate what income is possible? Then you need to consider several points:
- Losses likely: The majority of day traders lose money by trading in the long term! Your average return is MINUS 36 % per year. For the calculation, we assume that you belong to the small group who make a profit from trading.
- Earnings can vary: Your results can fluctuate greatly from day to day. It is therefore important to record the results over a longer period of time. A Trading Journal is a great help here.
- Compare performance: A study by the University of California (1) comes to the conclusion that the people who trade most actively generate lower profits. They only achieve a return of around 11 % per year, while the S&P 500 generated 17 % in the period under review. It therefore makes sense to compare your own results with possible alternatives.
- Trading taxes note: If you belong to the enviable group of successful traders and make a day trading profit, you will be faced with several deductions. First of all, the tax office wants its share. For most traders this means: 25 % Settlement tax plus solidarity surcharge. Successful day traders therefore often rely on VvGmbH and an international broker such as CapTrader to minimize their tax burden!
- Further editions: Other costs are deducted from your day trading profits. These include, for example, your broker's fees and expenses for signal services such as TraderFox or other sources of information that help you to trade successfully.
To get an overview of your personal performance, we recommend using a Trading Journals. All trades and results are recorded here. An invaluable tool for evaluating and optimizing your activity!
Is day trading worthwhile?
Some traders are only active on the stock market for fun or for the thrill of it. For everyone else, the question is whether day trading is worthwhile at all? The answer differs from person to person and depends on the following factors:
- Percent vs. euro: As already mentioned, the day trading profit per day is given as a percentage. Whether the activity is worthwhile depends on this value in combination with your available capital.
- Borrowed capital: The use of Debt capital trading is common. Traders multiply their profits (but also losses!) by borrowing capital from their broker and thus creating a leverage effect.
- Income: If you already have a high-paying job, active trading is unlikely to be worthwhile. However, it could be an exciting hobby. If, on the other hand, you are dissatisfied with your current job or income, day trading profit might be an appealing alternative. It all depends on your personal circumstances.
- Emotional stress: Day trading is a major emotional challenge. In particular, the losses that inevitably occur can be a heavy burden. You should also consider these "emotional costs" objectively and include them in your calculations.
- Time required: Successful trading takes time. Preparation, analysis and monitoring can quickly consume several hours. If you add up the time spent with the profits, it often becomes clear that the activity is not worthwhile.
- Alternatives: Numerous, very simple alternatives enable a similar return with significantly lower risk. For example, the S&P 500 Index can almost always outperform the typical 12 % per month of a successful trader.
The question of how much day trading profit is possible per day is usually followed by the question of whether it is possible to make a living from day trading. The short answer: Yes, it is definitely possible to make a living from day trading!
However, only a few people can demonstrate the long-term success required for this. It therefore makes sense not to go straight into trading with the aim of working full-time and to concentrate initially on achieving a positive return.
Tips for a high day trading profit
A high day trading profit per day is of course directly dependent on the success or failure of the trader. Most traders generate high losses through day trading and throw in the towel after just one month on average.
There are many reasons for this: poor preparation, emotional behavior, lack of specialist knowledge, insufficient Day trading starting capitalmissing Day trading strategy ... the list could go on forever!
If you want to defy the dangers of day trading and test your luck with active trading, we recommend that you first take a look at our Day trading tips. Here you will find important information on day trading in general.
Choosing the right broker
Choosing the right broker is the be-all and end-all for successful day trading! The costs for individual orders directly affect your profits and reduce your day trading earnings. One of the easiest ways to increase your day trading profit per day is therefore to choose a cheaper broker.
- Active traders place several dozen to over a hundred trades per day. The costs that a broker charges per transaction vary greatly.
- At the lower end of the scale you will find CapTrader with prices starting at 0.01 $ per share, but with a minimum value of 2 dollars.
- Expensive brokers - both online and at bricks-and-mortar banks - charge a high fee, which is often more than one percent! In addition, there are surcharges for trading venues, brokers and the like.
- Those who pursue more defensive day trading strategies may be able to get by with 300 trades per month. However, even with these comparatively small quantities, the costs quickly add up!
- The effects of high fees are particularly evident for active traders who, for example Scalping Use strategies. You can easily execute 1,000 trades or more per month. Price differences between brokers can quickly add up to several thousand euros!
Particularly drastic differences arise, for example, when comparing a low-cost online broker such as CapTrader with a typical house bank:
| CapTrader | House bank - example | |
| Fees per trade | At least 2 Euro | Approx. 1.5 percent |
| Price for 1,000 Euro Trade | 2 Euro | 15 Euro |
| Price for 300 trades of 1,000 euros each | 600 Euro | 4,500 Euro |
| Price for 1,000 tradesá 1,000 euros | 2,000 euros | 15.000 Euro |
It should also be noted in all calculation examples that the fees are incurred regardless of the success of your trade. Even if you have already made a loss, the fees are still due and will worsen your result even further.
Check personal suitability
Day trading profits per day are strongly related to the personality of the trader:
- Particularly high returns are achieved by people who pursue their strategy rationally, analytically and largely unemotionally.
- If, on the other hand, you tend to react quickly or do not have the necessary patience to analyze the important key figures, your chances are rather poor.
However, there is hope in this case too! Above all, it is important to carry out an objective self-assessment in which you also admit your weaknesses. You can then look for suitable solutions to these problems.
For example, a lack of discipline can be partially compensated for by better automation. Better risk and Money Management are important pillars for emotional retailers.
Choose the right strategy
Your trading profit per day rises or falls with your chosen strategy. You can choose from a wide range of possible approaches, which makes the decision difficult. It is also possible to switch at a later date, but this requires careful consideration.
- The problem: the various Day trading strategies are all valid and can work. Even the pre-selection is therefore difficult.
However, the reason why some day trading methods lead to negative results is usually incorrect execution. Many strategies are very complex and require specialist knowledge. Therefore, only start trading when you are sure that you can execute your chosen approach correctly.
Typical warning signals are: Not understanding parts of the strategy or market, having to deviate from instructions or exposing yourself to too much risk.
The most important tip: use paper trading!
The most important recommendation for generating day trading profits instead of losses is to use a Paper Trading Accounts. Here you can trade with play money in a realistic environment and improve your Day trading strategy without risk.
CapTrader provides you with professional trading software and real market data. In conjunction with a Trading Journal you can identify errors and maximize successful trades.
Only when you can reliably achieve a positive return here and feel confident in your dealings should you opt for a register a "real securities account".
Conclusion: The day trading profit per day is difficult to determine
Day trading is a very popular activity because it promises high earnings from the comfort of your own home. But what level of day trading profit is realistic? This question is not so easy to answer!
Earnings fluctuate greatly and can be a veritable rollercoaster ride of gains and losses. This is because not everything always goes smoothly with this form of active trading: losses inevitably occur, but should be offset by higher and more frequent successes.
In practice, successful traders accordingly achieve different day trading profits per day. One percent per month, or an average of 0.033 percent per day, is considered the typical lower limit for committed traders.
There is no real upper limit. Around 4 % per month is, statistically speaking, a very good result. The day trading earnings must be distinguished from the actual income. This is because expensive brokers and taxes in particular often result in painful deductions!
Most day traders do not make a profit per day, but a considerable loss. Even in this case, you have to pay the fee to your broker. It is therefore all the more important to make the right decision.
The best way to find out whether day trading is worthwhile for you personally is to carry out a Paper Trading Account find out. This test environment is ideal for trying out active trading and Learn to trade.
List of sources:
(1) Brad M. Barber, Terrance Odean: Trading Is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors, THE JOURNAL OF FINANCE, VOL. LV, NO. 2
