Don't believe me. Talk to Chat GPT. The realistic minimum amount of money a day trader needs to earn a living depends on several factors, especially: Monthly living expenses Target income (before or after tax) Expected return on trading capital Risk tolerance and drawdown capacity Country of residence (taxes, cost of living) Here's a practical estimate: Step 1: Define Income Needs Suppose you need $5,000/month after tax to cover living expenses in Canada (adjust as needed). With taxes, you’ll need roughly $6,000–$6,500 pre-tax/month, or $78,000/year. Step 2: Estimate Realistic Returns A professional day trader (not just lucky or reckless) might realistically aim for: 1% to 3% net return/month (after losses, fees, taxes) That’s 12% to 36% annually, assuming consistency and discipline. Step 3: Capital Required to Generate Income To generate $78,000/year: At 12% annual return, you need $650,000 capital At 24% annual return, you need $325,000 At 36% annual return, you need $215,000 These are not wild success stories — just reasonably consistent profits while surviving losses. Bottom Line: Minimum realistic capital: $250,000–$500,000 Below $100,000, it's possible, but you're either: Living cheaply, or Taking huge risks, or Not relying solely on trading income Would you like me to run numbers based on your own cost of living or trading style (margin, swing vs scalping, etc)?
Hello wxytrader, Thank you and nice write up. Yes, run the numbers based on your own cost of living or trading style (margin, swing vs scalping, etc)?
To succeed as a day trader you truly have to be a radical. Throw out all traditional conventional wisdom and lists. They were made by failed traders and academics. You have to embrace risk to make real money. Who the hell is happy making just 2% per month? Impotent diarrhea returns. It all doesn't have to be a blind gamble though. If a trader truly has a wise and bold perspective good things can arise
Well personally if I can't make at least 50% yield it's a waste of capital...same rule for dividends. Not day trading though...and I also put more weight on premium received than pnl.
Good Evening LionsWarthogsMillions, I agree with you 100% percent. Day trading is about making $1million in one year, then taking that $1million to $3million the next year, then taking that $3million to $5million the next year. In other words: Year 2025 - Make $1million Year 2026 - Make $3million Year 2027 - Make $5million Books, trading courses, do not teach this. They teach day trading for a living. Trading for a living is a stupid idea.
If someone will engage in day trading....plan and conceptualize on how to make a Million bucks. The Hell with this risk 1% of your account per trade and be happy to make 2% a month diahhrea Shit. Aim for Real treasure... because it's out there for the Taking for the wise and bold to seize. Million... that's the word, not some social security check govrrment subsidy trading return limp size
Hello wxytrader, Do not waste your time. Trading for a living is a Scam. https://www.elitetrader.com/et/thre...-is-less-stressful.384495/page-6#post-6128733
Hello LionsWarthogsMillions, I agree. Only day trading losers risk 1% of their account per trade. That crap does not work. I agree with you fully. I only trade to get rich, VERY quickly. Not slow and careful, and risk management is beyond stupid in trading.
1,000 2,000 4,000 10,000 20,000 50,000 100,000 200,000 500,000 1,000,000 A trader only needs to double their account in 9 trades. Or some Variation thereof. How hard can it be. Your average clown will fail. Sure. But don't be an average clown trader, be a wise clown trader,, ..