What is the average monthly income for a swing trader?
But in that guide, we discussed that a good profit return to expect over the course of a year is between 10-30%. If you earn just 1-2% profit every month, you'll earn 12-24% annually – which we would consider a very successful year.
But in that guide, we discussed that a good profit return to expect over the course of a year is between 10-30%. If you earn just 1-2% profit every month, you'll earn 12-24% annually – which we would consider a very successful year.
Aiming for a 5-10% monthly return is a common and a realistic swing trading return.
As of Mar 18, 2024, the average monthly pay for a Trader in the United States is $8,064 a month. While ZipRecruiter is seeing monthly salaries as high as $22,458 and as low as $3,292, the majority of Trader salaries currently range between $4,708 (25th percentile) to $8,791 (75th percentile) across the United States.
One of the main benefits of swing trading is that while it doesn't take much time, you can earn large profits for the time invested. This trading style can be anything you want it to be. If you are willing to dedicate yourself entirely to it, you can easily earn a living through swing trading alone.
From Paul Tudor Jones to Stanley Druckenmiller, the list of successful swing traders is long and illustrious. Each of these traders had their own unique style and approach, but they all shared a common trait – the ability to anticipate major market movements and make bold bets on the outcomes.
Swing trade positions have a better potential for larger gains and losses than day trade positions since they are generally open longer. Because each trading approach is unique, traders should select a strategy that suits their talents, interests, and lifestyle.
For swing trading, the most effective approach involves utilizing simple moving averages (SMAs). By averaging out price fluctuations over chosen time frames, these SMAs can highlight possible opportunities for a swing trade.
Typically, swing trading involves holding a position either long or short for more than one trading session, but usually not longer than several weeks or a couple of months. This is a general time frame, as some trades may last longer than a couple of months, yet the trader may still consider them swing trades.
The holding period for a typical swing trade falls somewhere between two days and two weeks. Of course, there are exceptions where some trades are held for longer periods of time – but we'll talk about that later on. For now, let's focus on the average holding period for a swing trade.
How much money do I need to invest to make $3000 a month?
Imagine you wish to amass $3000 monthly from your investments, amounting to $36,000 annually. If you park your funds in a savings account offering a 2% annual interest rate, you'd need to inject roughly $1.8 million into the account.
Profit Margins
Many profitable traders attest to the importance of proper risk management. Self-funded traders set their risk management rules. How much do day traders make per month? Typically between $4,000 -$12,000 on average.
How much does a Day Trader make? As of Mar 18, 2024, the average annual pay for a Day Trader in the United States is $96,774 a year. Just in case you need a simple salary calculator, that works out to be approximately $46.53 an hour. This is the equivalent of $1,861/week or $8,064/month.
With a $10,000 account, a good day might bring in a five percent gain, which is $500. However, day traders also need to consider fixed costs such as commissions charged by brokers. These commissions can eat into profits, and day traders need to earn enough to overcome these fees [2].
The recommended minimum to start swing trading with is $600. Again, this makes sure that there is enough money so that 1% or less of the capital can be risked on any single trade.
Swing Trader, that trades on High Timeframes and needs setups? Watch and trade 20 pairs. Day Trader that is risky and has no problem losing 5-6% a day? Monitor and trade 3-5 pairs.
When done correctly using sound trading rules, swing trading can absolutely produce big gains. Even though you're aiming for 5-10% profit in a swing trade, those gains add up quickly when you reinvest the profits in new stocks and grow the overall size of your portfolio.
| Name | Sub-Sector | Market Cap (₹ crore) |
|---|---|---|
| Poonawalla Fincorp Ltd | Consumer Finance | 37,119.12 |
| PNB Housing Finance Ltd | Home Financing | 22,426.06 |
| Sun Pharmaceutical Industries Ltd | Pharmaceuticals | 330,700.33 |
| Tube Investments of India Ltd | Cycles | 76,041.63 |
If successful, you can make quite a bit of money; but there are some caveats. Swing trading often requires positions to be held for days or weeks waiting for positions to materialize. For this reason, other trading styles with quicker gain capture may yield more profit.
The best time frame for swing trading in particular is typically the daily or weekly charts. This gives you enough information to make informed decisions without being overloaded with data. Remember – you're not concerned with the minute-by-minute changes in a stock's price like a day trader may be.
How long does it take to learn swing trading?
The mindset of instant gratification will not work in the stock market. You will need to be patient and be ready to work hard. For learning swing trading, it takes at least 6 months and for intraday trading, at least a year.
Is day trading safer than swing trading? If the risk is controlled on each trade, neither style is riskier than the other. Both trading styles could limit losses on each trade to 1% of the account, or 0.5%, or 2%, for example. That said, swing traders make fewer trades than day traders.
The 1% risk rule means not risking more than 1% of account capital on a single trade. It doesn't mean only putting 1% of your capital into a trade. Put as much capital as you wish, but if the trade is losing more than 1% of your total capital, close the position.
- Adjust Position Size: In volatile markets, consider reducing your position size. ...
- Use Stop-Loss Orders: Set stop-loss orders to limit potential losses. ...
- Risk-Reward Ratio: Maintain a favorable risk-reward ratio.
But calculations get tricky because this salary depends entirely on your skill level, the market itself, and the hours you plan to invest. Some enjoy a swing trader salary as high as $174,000 annually, while others barely clear $20,000.
