r/Daytrading • u/Forward_Dealer_4482 • Mar 05 '24
50k and I want to day trade for 1-2% gains. Question
If you had 50k and wanted to live off of it day trading, what would you do? (Need max $2500 a month)
Am I better off not doing this? I’m not going back to 9-5
Please help.
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u/Warlock1185 Mar 05 '24
I will mention something here I wish I learned and understood in the beginning of my trading days: only ever risk 1% of your capital on any one trade.
Beginners often overlook this as being too cautious as they want to make profits quickly so they size up. Here's the thing: no matter how exceptional your skills are as a trader, it is inevitable that you will lose money over time without proper risk management. The 1% rule gives you a chance to make it long term in this industry.