Can you make 500 a day trading stocks? Sure you can make $500 a day if you know what you’re doing
If you’re interested in figuring out the answer to, “Can you make 500 a day trading stocks?” then you’ve come to the right place.
First of all – and before we get too far into this subject – let me congratulate you on coming up with such a specific, goal-oriented question.
Asking questions like these will be able to really focus you and help specify the goal you’re looking to achieve.
And with having set such a specific target, I can also see that you’re looking to make $125,500 per year from your trading.
How do I know this? Because there are about 251 trading days per year (you can see how I arrived on that number from our article – Trading Basics: How many stock trading days are there in a year? which you can check out by clicking this link).
Now, maybe that isn’t enough for you and you may need to revisit your goals but at least it gives you a great place to start.
So, Can you make 500 a day trading stocks?
Yes, you absolutely can make that kind of money or more trading stocks.
The first thing to do is to decide just how you want to go about getting that kind of money – the amount of effort that you want to put in to get it.
If you have a boatload of money, you may be able to just park it in a blue chip stock that pays dividends and collect the interest.
So if we take an example like Chevron (currently trading at $72.39 for this example) it is currently paying an average dividend of 7.1% per year.
And if your goal is to average $500 per day by trading stocks (and that you’re looking to make $125,500 per year as per what we’ve already discussed) you would need to buy approximately $1,760,563.3 worth of stock. (The calculation being desired return of $125,500 per year divided by 7.1% return per year)
Given Chevron’s current trading price of $72.39 it means you would need to buy approximately 24,320.5 shares of stock in order to do this.
So rather than having to fork over the entire $1,760,563.30, you may only need to come up with $528,168.99.
Maybe now it seems a little closer and within reach?
Now, the price of the stock and as a result the dividends will fluctuate over the course of the year and it’s dividends are paid quarterly (which will allow you to compound and generate more return if you so choose) but for our simplistic example, you can see how this can be done.
Most people would diversify and have a variety of different dividend paying stocks in order to achieve this goal, but you can see how it works.
Now, as you’re asking whether you can make $500 daily trading stocks, I’m assuming that you don’t have $1,7760,563.30 (or even $528,168.99) that you can just park in stocks in order to generate a return.
And if that’s true, then you’ll have to take a much more active approach to trading and incorporate some form of swing trading or day trading.
If you’re new to trading stocks (and especially if you’re new to day trading) I highly recommend that you get “The Day Trading Manifesto” book as it will help you get started on your trading journey.
The Power of Leverage
As I’ve just shown you in the example above, you can quickly see how powerful using other people’s money in the form of a margin account can be.
Having to come up with $528,168.99 instead of $1,760,563.30 makes a HUGE difference and paints a pretty dramatic example of the power of leverage that you can use when trading or investing in stocks.
Now, maybe the $528,168.99 is still too much for you to come up with.
But what if we adjusted our requirements for the amount of money we wanted to generate?
What if instead of $500 per day, we wanted to average $100 per day (or $25,100 per year)?
Well, let’s look at the numbers again, and we’ll stick with using Chevron as an example to keep things simple.
So to generate $25,100 per year, we calculate the amount we need to invest as: $25,100/7.2% = $348,611.11 in stock needed (about 4816.4 shares of stock).
But using a margin account, you only have to come up with $104,583.33 of your own money. This is the power of leverage. Where you can effectively make a lot more money even through you’re not using as much of your own money.
It might still be a lot of money, but it’s a lot more within reach than the $528,168.99. Of course with the $528,168.99 you’d be making $125,500 per year.
And making an extra $25,100 can make a big difference. Especially as current stats indicate most people are $200 away from losing their home.
The Quickest Way to Make $500 a Day Trading Stocks
Ok so now we can now look into how you can make this kind of money trading stocks.
In order to make this kind of money you’ll need to use either a day trading or swing trading style of trading. (See this article for more information on what is involved for each trading style).
And you’ll have to work and develop your skills from trading using a practice account. Once you’ve done that you can eventually trade using real money.
If you’re starting out, the quickest way for you to get up and running is to join a stock trade alerts membership site. Then you’ll be trading alongside someone who has significant experience trading in the markets. (If there’s room, you might be able to join our stock trade alerts program inside “The Empirical Collective” here).
As we looked at in the example earlier how you can leverage your money using a margin account, by signing up for a trade alerts program you’re able to leverage someone else’s experience in order to get to your desired goal that much faster.
And if you combine both, you’ll be leap-frogging ahead of everyone else. That and you’ll have a chance to make money right away.
Things other people have asked when searching for an answer to, “Can you make 500 a day trading stocks?”
Can you make money with stocks?
Yes, you can make money with stock investing if you choose from a good quality company and buy it at a low price. It is easy to lose money with stocks too because the market is always fluctuating. If you want your investment to succeed, it’s important that you have a plan in place for when the markets experience both ups and downs, don’t invest more than planned and keep records of every purchase/sale whether they’re successful or not.
How much does the average day trader make?
The average day trader can make anything from zero to millions of dollars per day, depending on skill level and risk tolerance.
The question is ambiguous since these are not mutually exclusive categories. So, if you want to calculate that number exactly, you would have to take into account the amounts of money made in each category- thus refining your question becomes more difficult. However, let’s assume that we’re talking about a professional full-time trader (someone who trades every single day for a living). That type of person can make much more than someone who only does it occasionally or when they feel like it. It’s unlikely that the average person makes much profit at all; however, many do work part time as traders and may find themselves eeking out a small profit.
Is it possible to make $100 a day day trading?
Yes, if you have the discipline.
It’s easy to see how trading stocks or FOREX can be addictive and it’s understandable that some people may want out (rather than build a company like they once wanted to). This is why quitting your job and taking on a high-risk profession, such as day trading with an investment of $1,000 with the mindset of making $100/day quickly is probably not going to work out for you.
If you do venture into day trading (or any other type of speculative endeavor), make sure the money is coming from savings built up over time or from cash flows, don’t jeopardize your significant other’s ability to live her dreams by making her financially dependent on you.
Can I make 500 a month trading stocks?
Yes – you can make 500 a month trading stocks, but not without risk.
The truth is that making money, no matter what the industry or discipline, comes down to two things: Marketing and skills. So for starters if someone doesn’t have the skills to execute well enough, then they’re never going to be able to generate revenue regardless of whether they’re actually processing trades or even setting foot outside of their home. It’s the execution which matters most.
And this is made easiest if you’re following the trade alerts given by the best options trading service
Why is it hard to trade stocks profitably?
Because stock prices are not always rational.
Information to include in answer: As a result, investing based on these price movements is risky and can lead to high levels of volatility.
A successful trade will only happen when somebody, knowingly or unknowingly, has an irrational belief about the value of their own assets and so they sell it for less than its actual worth and someone else buys it just because they believe that something might happen that other people don’t believe could happen. So if you try to predict this kind of behavior then you’re playing a ridiculously difficult game against somebody who knows exactly what they’re doing because stocks prices aren’t always rational. The universe doesn’t play fair all the time!
Who is the richest day trader?
Bill Lipschutz is the richest day trader. A former CEO of 19 different companies, he now runs a hedge fund and is worth over $2 billion.
Bill has also been donating money to various charities for many years and has given away more than $100 million of his own money.
What is day trading?
Day trading can be defined as buying one or more stocks for the purpose of resale on the same day at a higher price.
For example, Company A is trading at $5 per share, and someone comes in to buy 1000 shares worth of stock at 10am. He wants to make an additional profit by reselling 1000 shares before the end of the day when all other traders are closed for lunch. That means that there’s three possible outcomes in this scenario:
What are some good stocks for day trading?
There are a number of really good stocks out there for day trading, and it’s important to be aware of what stocks work well with the trader’s own skill set. Some traders have excellent abilities for entering into trades before the opening of the market, some have strong skills at holding positions from morning through early afternoon, and some can be excellent at timing exits on their positions during the last hour of the trading day. The most important thing is that whatever time period is selected by a trader, he or she needs to find a stock that has good volume during those hours so they can keep up with turnover opportunities.
Should you trade stocks or invest in them?
Invest in them.
People trade stocks to make a living, but if you have extra money that you can afford to invest at a respectable level, just go ahead and get into the market. You’ll end up making more over time than you would with trading because of the way investing work (compound interest, reinvestment). Trading is like gambling. Investing is playing the game right – for most people.
Why do most day traders fail?
Most day traders fail because they lack the knowledge to predict the market’s direction. Which is why many firms, such as The Empirical Collective, offer educational resources for budding traders.
What is the best way to trade for beginners?
There are two ways to trade for beginners. The first way is to trade manually, which can be time consuming and difficult. The second way is with a trading system and following the trades of a more experienced trading group, which can be much easier than manual trading and more effective in profit-making.
Can you get rich day trading?
Day trading is gambling. The odds of going broke in a day are high enough that most will go broke within the first few weeks. Trading is a highly skilled profession, and with time and patience can be won at with discipline over many years, but not with the manic pace of a day trader.
The world’s best traders know their trading traits they undertake only trades where they have an edge on the market using sound risk management techniques to control their losses. They have spent their lives learning from experience how to manage money so it doesn’t manage them .
What should I know about day trading before I start investing?
Day trading is a complex and risky endeavor. Before you start investing, there are a few important things to think about first.
First day trading can be very demanding both on your psychological state and your autonomy as it requires an almost 24 hours awake state of attention at some intervals. You’ll be constantly watching CNBC or other news names in an attempt to determine future stock moves. And it comes at a high cost to your personal well being – even if you make more income doing it. That’s why it’s crucial to invest in oneself, sleep well before starting day trading and keep one or two spare days per week for weekends with friends and family so that you still have enough energy left to put into trading with all the required attention once the weekend comes around again
Second know yourself – don’t take any step towards day trading if you’re not capable of correction: know if emotional stress or panic attacks will hinder your progress.
Most people are better off not day trading and just being an investor where they keep investing part of their salary each and every month.
That said, it’s not like you shouldn’t sign up for an online trading platform and start trading in the stock market.
Just make sure you do it smart. Use a stop loss, and figure out what you’re doing first before you, say – start trading your entire potential portfolio.
As a general rule, you’ll have few profitable trades when you start up. But if you keep going back to the books and learning, you’ll get there eventually.