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Can You Make Money Every Day From Trading? 

Last Updated: March 29, 2021

By Rayner Teo

Let’s get real…

You want to make money from trading so you can quit your job and do the things you love (like travelling, spending time with the kids, etc.).

And to replace your full-time job, you need to make a consistent income from trading.

However, consistency in trading is subjective because it could mean making money every day, week, month, or even year.

To be on the same page, let’s focus our attention on making money every day (from trading).

Is this possible or is this just a pipe dream?

That’s what you’re about to find out.

Read on…

Can your trading strategy work all the time?

If you want to make money every day from trading, then your trading strategy must work all the time.

Is this possible?

First, let’s take a step back and ask ourselves…

“What’s the purpose of a trading strategy?”

Well, a trading strategy is used to exploit a phenomenon (or “pattern”) in the market with the hopes of making a profit from it.

For example:

Trend followers attempt to ride trends across different financial markets.

If most markets are trending, trend followers make money.

If most markets are ranging, trend followers lose money.

Make sense?

In other words, every trading strategy out there can only profit from a specific market condition suitable to the strategy.

If the market condition change, then the trading strategy will stop working and go into a drawdown.

Now you might be thinking:

“If no trading strategies work all the time, then it’s impossible to make money every day from trading?”

Well, there are 2 things you can do…

#1: Adopt multiple trading strategies

Recall:

A trading strategy can only exploit a certain “pattern” in the markets, and when the market changes, the trading strategy goes into a drawdown.

But what if you adopt multiple trading strategies?

Then it means you could profit in different market conditions.

For example:

You combine trend following and mean reversion trading.

So when markets are trending, the trend-following strategy makes money. And when markets are ranging, the mean reversion strategy will do well.

Still, the trick is to have your “winning” strategy offset the losses from the “losing strategy”.

Now, there’s no guarantee, but it puts you in a better position than having one strategy only.

#2: Find more suitable markets to trade

The next thing you can do is, trade more markets so you have a greater chance of finding a market condition suitable to your strategy.

For example:

Let’s say you’re a trend trader who focuses on the forex markets.

Now, if the forex market isn’t trending then you can move onto other markets like stocks, futures, ETFs, etc.

This way, you can find even more trading opportunities that your trading strategy can excel in.

However…

There’s no guarantee you can make money every day because trends can suddenly reverse at the same time (especially across correlated markets).

Pro Tip:

If you want to take things a step further, you can look to trade across different timeframes.

Can you make money every day from price action trading?

Now, you might argue a price action trader can adapt to changing market conditions.

So, does it mean a price action trader can profit from the markets every day?

In theory, it sounds plausible.

But in reality, it’s a different thing altogether.

Let me explain…

#1: When the market is in an uptrend, a price action trader will look for buying opportunities.

Still, there’s no guarantee he’ll profit on every trade as the market could make a sharp pullback and hit his stop loss.

#2: Every trend will come to an end—and the way it ends could come in different forms.

For example…

  • Swift reversal
  • Choppy reversal
  • Range market before a reversal

Now as a price action trader, are you able to anticipate these types of reversals so you don’t get caught on the wrong side of the move?

So my point is this…

If you can overcome #1 and #2, then you can possibly make money every day from price action trading.

Moving on…

Why it’s impossible to make money every day from trading if you don’t have this one thing…

Let’s play a game…

  • If you toss a coin and it comes up heads, you win $2
  • If you toss a coin and it comes up tails, you lose $1
  • You can only toss the coin once a day

Now let me ask you…

Do you think you can make money every day from this coin toss?

Of course not.

Because on any day, there’s a 50% chance you either get head or tail—and if it comes up tail, you’ll lose $1.

But what if you can toss the coin 1,000 times per day? How would things change?

Let’s see…

If you toss a coin 1,000 times, you’ll likely get around 500 heads and 500 tails.

(Every time it comes up heads, you win $2. If it’s tails, you lose $1.)

So if you do the math, you’ll end up with a net gain of $500.

Now let me ask you…

If you had this “special” coin and could toss it 1,000 times per day, do you think you can make money every day from tossing this coin?

Yes!

So, what’s the lesson here?

The frequency of your coin toss matters.

You might be wondering:

“What has this got to do with trading?”

Everything!

Because if you want to make money every day from trading, your frequency of trades plays a huge role.

That’s because the more trades you can do within a short period of time, the faster the law of large numbers can work in your favour (think of the coin toss example).

Can a 90% winning rate help you make money every day?

Look at this chart below…

The results of this trading strategy look amazing, right?

Next, look at this…

You’re probably wondering…

“What the f*** happened?”

(And yes, this is the same strategy you saw in chart #1.)

I’ll tell you…

The reason chart #1 had a smooth upward sloping equity curve is because of the way each trade is managed.

It has a small profit target and a huge stop loss.

An example…

2 pips profit target and 200 pips stop loss.

Mathematically, you can expect this trading strategy to have a high winning rate (90% or more).

The problem with it?

It isn’t sustainable.

Because it’s a matter of time before you encounter a loss and it’ll erode whatever profits you have incurred (and more)—which explains chart #2.

So back to our question…

Can a 90% winning rate strategy make you money every day?

Yes, it will make you money every day for a while.

But eventually, you’ll suffer a huge loss that wipes out everything (and more).

Conclusion

At this point:

You’ve discovered the truth about making money every day from trading.

And I know you’re probably feeling discouraged.

So, what now?

#1: Manage your expectations

Trading isn’t like a regular job where you get a fixed pay cheque each month.

Instead, there are times where market conditions are favourable to you and you’ll make good money.

And there are times where market conditions aren’t favourable and you’ll go into a drawdown (where you’ll keep losing money).

So the trick isn’t to try and make consistent profits every day because it’s detrimental to your account in the long-run.

Rather, it’s to make as much as possible during good times and play good defence during tough times—so you can live to “fight” another day.

Embrace the uncertainty—don’t fight it.

#2: Think longer-term

As you can see, trying to make money every day from trading is difficult because there are so many factors against you.

But if you have a longer-term outlook (like trying to make money every year), then things become much easier.

Here’s why…

  • You have enough time for the law of large number to work in your favour
  • It’s less likely for a trading strategy to not work for an entire year
  • You’ll feel less stress which will improve your trading results

Does it make sense?

#3: Trading is a means to an end

You might be thinking:

“What do you mean by trading is a means to an end?”

Simple.

Most of you reading this right now, trading is a medium (or tool) to get to your desire.

For example, your desire could be things like:

  • Financial freedom
  • Spending time with your kids
  • To travel around the world

But here’s the thing:

Trading isn’t the only medium out there.

You can do things like setting up an online business, be a YouTube creator, invest in an index fund, etc.

So, my point is this…

Don’t miss the forest for the trees.

If you ever feel trading isn’t for you, then quit—there’s no shame in it.

It doesn’t mean you’re a failure and you have to give up your dreams.

None of it.

Because there are plenty of options out there. Have an open mind and you’ll see the endless possibilities out there.

Now here’s what I’d like to know…

Besides making money, why do you want to be a trader?

Leave a comment below and share your thoughts with me.

  • I intend to be financially free by becoming a funded trader and using the gains to invest into creating passive income skills.

  • Trading makes me feel alive, happy to have analysed the conditions correctly, feels like a chess game of masterminds

  • I like trading because it affords me independence. I thoroughly enjoy working when I want to in terms of time. My choice of products to trade is wide and I decide when to stop trading.

  • making money is one but some sort of passion i am developing towards trading. money i make out of trading is for trading mostly.

  • I like trading because it offers challenging opportunities that keep one thinking and making critical decisions in the face of financial risks that are open to loss or gain, just like in every other serious life affairs.

  • Trading is awesome, it’s fun and makes me like Mondays. Though it is indeed hard to be consistent, one loss can wipe some wins. Trading is definitely not for everyone but for those who strive can find a strategy that suits them and be consistent. It’s like sports, you have that one guy who everyone knows and another who no one knows but still plays in this big team. Don’t get discouraged, even if you can’t be a great trader, you can be a decent one, if you want it, you’ll get it.

  • Ambition to come in elite category of persons, who make money from stock market through critical analysis of market.

  • You are right. Trading is not a daily business. You can be a successful trader by control on your emotions, greed etc. Its long term business.

  • Well said bro.. Same thing happen to me. I was in confusion state. after reading this message I get some idea about my trading plan

  • Hey Rayner
    I really appreciate your efforts in guiding us
    I want to be a trader because I want to empower myself, have my time freedom and much more

  • I love working from home, which trading is one of the things that can make me achieve that.

    Make money and financial freedom makes me love to be a trader and is also challenging, and at the same time it teaches how to manage risk when it comes to being financially free.

    Rayner you’re a blessing to my growth as a trader. Love you bro

  • I personally want to be a boss of my own. I want to wake up at any time I decide not someone else deciding that for me. Lastly, there is a personal joy I get when my trades goes the way I plan.

  • Thank you for the very insightful piece. I’m a new comer as I haven’t traded before. I want to learn forex for financial freedom.

  • I love trading because nobody in our family has ever known there’s something like it, so I want to make money and prove that you can be successful by being different.

  • i want to master the skills in trading so that i can get what ever i want where ever i want it. and help others to learn and earn as well. i want to be the best trader who can change the live of others in my community.

  • Firstly I would like to thank you for the wonderful work, after I discovered my mindset of trading I realised that I can improve my fimaly and community. More so trading help me how to manage my emotions and psychology to every situation I face, I will continue reading watching your videos and Big thanks

  • Becoming a full time trader has always been a dream of mine. Work from home or anywhere really. Not dealing with coworkers, bosses or employees. Additionally the money that could be made. The pandemic has helped to get a head start. My option trading is consistently profitable but my day trading has been a account destroyer. Things are getting better though. My takeaway, I keep working on my strategies and trade small, trade often and don’t take unnecessary risk. Stick to the rules and protect the account. Trade Options, Stocks, Futures and indexes and some currency paires to stay diversified.

  • trading is awesome, a continuous learning, never say no to new strategy. yours is among the greatest. thanks once more.

  • I like trading because I like riding roller coasters. That long slow climb to the top, as the anticipation of what lies ahead builds. That gradual pause as you reach the top of the rise. You are on the precipice. Like on a see saw, you are teetering, butterflies in your stomach. Then, suddenly, you are plunged back down to the bottom with tremendous speed. The G forces build. The adrenaline surges through your body. Your heart is in your mouth as you scream around the bends and you are thrown around and tossed about in all kinds of directions. You are on the ride of your life. Then, before you know it, it’s all over. You walk away. Euphoric. WOW what a ride. That is trading. That is what I love.

  • Personal decision making.
    But the truth still remains that we all trade the market for money as the major reason.

  • I believed that trading is a profession for tough guys and disciplined individuals with extraordinary efforts towards their dreams.

  • I agree, trading is just a means to an end. Focus on your destination then use trading / forex ( whatever you do ) as a lubricant to get there. Remember to enjoy the journey, be well, be happy, and may you always progress and grow and keep learning and improving !!

  • 1. Payout my housing loan
    2. Be ready for my children’s education
    3. Give additional luxury to my family
    4. Donate to the needy or provide something which can be sustainable in the long run benefits for users
    4. Start own business

  • I’m just a student, trading is a means to an end, just need to make enough money to start some other business and have passive income, also see it as a game of intellectual pursuits, sort of like two evil masterminds playing chess to see who is the intellectually superior one.

  • Rayner do you read these? Could you (or anyone) recommend your top books for someone just starting, but would prefer only to buy and day trade stocks (not options or shorts)? Info on Daily Pivots, Doji Candles, and Contrarian Investing (buying the bottom) Thank you!

    • Hi Marcus!

      You may try our Price Action trading secrets. It is also for someone who’s just starting in trading. definitely give you better understanding! here is the link:
      priceactiontradingsecrets.com

      Cheers!

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