There is no other job as exhilarating, liberating, and rewarding as day trading.
Often times, people find interest in day trading for the wrong reasons. They have sky-high expectations before they even place their first trade.
We can’t blame people for thinking like this since we see it all the time. The ‘zero to hero’ story of the billionaire hedge fund manager who started from his garage. Another example is the multi-millionaire trading on his phone from his Bugatti.
This ‘successful trader’ image is so prevalent in our culture. It is no surprise that people have distorted views of what it means to be a profitable trader. We all hope to achieve this level of success. New traders fail to meet these high expectations and become frustrated. These problems cause traders to quit for good.
A ‘day’s pay’ is an attainable goal that you set for yourself.
At CTU, our goal for every student is to make a gain of (at least) 20 cents per share each trading day. This is a conservative goal, since most of the trades we follow and callout in our trade room increase double and even triple digits by percentage.
There are 252 trading days in one year.
1000 shares of stock.
The stock increases 20 cents = $200.
Consistency is Key
“Success is neither magical nor mysterious. Success is the natural consequence of consistently applying basic fundamentals.”
― Jim Rohn
The idea of the ‘days pay’ is a concept that requires consistency.
Making $4000 a day, though a respectable goal, isn’t exactly realistic when you’re beginning to learn to trade. Yet, sticking to your trade plan, journaling, reviewing, revising and reaching your day’s pay is the recipe to the big bucks that you dream about.
When you look at the multi-millionaire trader, you don’t see the grueling hours he put into the research of his strategy. You don’t hear about the sleepless nights he endured after making questionable trading decisions and ignoring his trade plan. You don’t know that it took thousands of small trading wins before he got to the point where he was comfortable trading large size. The core of a truly successful trader is someone who respects the process every step of the way, while knowing that they will reach their ultimate goal in the end.
The amazing thing about day trading is that it is scalable to a certain extent.
With this scalability, it does not need much more technical skill. A 20 cent gain on 100 shares requires the same amount of technical skill as a 20 cent gain on 1,000 shares. That is, assuming the stock is highly liquid. As you start to scale up even more in share size it becomes less of a skill issue and more of a psychological issue. The market does what the market wants. We can only react to what we see with our best judgement. Mastering our own psychology is so important. This is why teach our students to start with a small goal.
Reaching these small goals that you set for yourself will add up and before you know it. You are the trader you’ve always wanted to be.
If you’re interested in learning more about day trading for consistent income, please sign up for one of our free upcoming webinar events!
Check out our other articles on day trading here.