Although it cannot be stated accurately how much a professional day trader can make in the stock market, the reason being that there is a ton of external factors that can affect how much they can truly make. But the ultimate fact still remains that there is a great range of potentials when it comes to day trading, however it is possible that some traders would still need to work another job because they can’t pull enough money from the market to live on, there are also those that can’t live comfortably on profits they make from day trading, then ultimately there is that small percentage who will make a lot of money, these are people we refer to as professional day traders. And truth be told, the goal of every Day Trader is to become a professional. So how do professional day traders make money in the stock market?
Most Day Traders who really wants to make money go for stocks with high “betas”. A beta can tell how fast a stock can rise or fall within a given market. They go for stocks that offer speedy gains due to high trading volume? A professional day trader could also go for penny stocks. However while penny stock may trade for just $5 or less per share, due to high trading value these stocks can lead to a big win,in addition to a tremendous amount of research and luck. But of course not everyone has the time to deal with the market this way, which is why professionals will advise the “slow and steady” method of investing
Binary options are also quite rampant as a day trader can use it to hold a position on the hope for direction of an asset. To trade on binary option, you’ll need a trading platform and there are quite a number to pick from
This is one of the main form of investing in stock market. This is where you look at a chart with a set of indicators and pattern recognitions. While using technical analysis a trader does not necessarily need to analyze a company’s financial background and management history but rather it involves looking at a chart. A lot of professional trader prefers technical analysis because the market cannot be trusted, so depending on your own analysis might fail you. However if you are hoping to invest in a company over a long period of time then you might want to take another approach. Most day traders make money in the stock market because they make use of technical analysis. Professional day traders can be grouped into three types.
- Scalper traders: This set of professional traders take in profits in the stock market using high profits and low profits. They are good at taking advantage of small differences in the market. Scalpers can hold a position for 5 to 10 seconds and sometimes a minute. So since their profit margins are low they tend to place a number of trader with quick entry and exit in order to make high profits.
- Intraday traders: These traders holds a position within minutes or hours but never overnight.
- Swing traders: Compared to a scalper and an intraday trader, a swing trader can hold positions for a few days or weeks.
One important note here is that professional day traders make money on a daily basis even when the market goes up or down, they find a way to use it to their advantage.
Author Bio: The stock market experts stockradar.in are professional traders and research house which endeavor to provide best winning trading strategies to the traders so that they stop losing money and start making consistent gains from the stock markets .