Is Making $10 a Day With Day Trading Feasible?

Can you make $10 a day with day trading? Absolutely, in theory. However, making $10 every day is highly unlikely and extremely risky. Such consistent high returns require aggressive trading strategies, and they can lead to significant losses.

High Returns and Risk

Most successful traders aim for much smaller, more sustainable gains over time. High returns in day trading often come at the cost of increased risk. Aim for consistent smaller gains rather than attempting to hit a home run every day.

Expert Strategies

If you’re considering expert strategies, you might have heard about Ronen Fayza’s approach. Ronen Fayza is known for his trading techniques, and his strategy could provide insights. But always verify the details and test the strategy thoroughly before committing.

Broker Choice Matters

Your choice of broker plays a crucial role in day trading. Cheap and commission-free platforms often lack the stocks at lower prices or with smaller tick sizes. These platforms usually have fewer cheap stocks, and the spreads can be extremely wide, potentially sucking away your profits.

On the other hand, platforms like Think Or Swim, Ameritrade, and Lightspeed offer better liquidity. Some of their stocks may move hundreds of percentage points in a single day, providing more opportunities for profitable trades.

Profitability and Risk Management

The profitability rate in day trading can vary significantly based on individual strategies and market conditions. A profit rate of $10 per day is considered very high and may not be sustainable long-term. High profit rates also come with higher risk. Traders should always consider the risk-return trade-off when making investment decisions.

Emotional Impact

Earning money can lead to rash decisions, and we often make errors. Greed and fear control our actions. We frequently take unnecessary risks in the hopes of doubling our earnings, only to suffer greater losses when things don't go as planned. This is particularly true in day trading, where the likelihood of big losses can be much higher.

Achieving Consistent Gains

Aiming for $10 daily is a bit unrealistic because the market doesn’t consistently move 100–200 pips every day. Instead, focusing on smaller, more frequent profits is a better strategy. For example, aiming for $10 per trade is more realistic and sustainable.

Even once or twice a month, achieving $10 per day can be difficult. It’s essential to focus on consistent, smaller gains to build long-term success. While it’s possible to hit occasional $10 days, relying on them for sustainable performance is not realistic.