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Day Trader Salary

How Much Do Day Traders Make in 2025: Complete Guide

14 minutes read | 04-08-2025
Day trader earnings
Day trading is a career path that attracts thousands every year. If you have recently started, you may be wondering how much you can make day trading in 2025. In short, it depends. Income varies with capital, skill, strategy, and even the hours you trade.

In this article, we’ll guide you through real numbers, industry data, and sample scenarios to show what day traders actually earn and how thorny the path to success is.
Table Of Content
What Day Traders Do and How They Make Money?
How Much Do Day Traders Make?
What Affects a Day Trader’s Salary?
Types of Day Traders and Their Earnings
Day Trading vs. Other Trading Careers
How to Increase Your Day Trading Income
FAQs

What Day Traders Do and How They Make Money?

If you’re reading this guide, chances are high that you’ve already begun your trading journey—maybe with shares and bonds, or crypto. You might be dedicating a few hours per day to the process, gradually paving your way to success.

Day traders, on the other hand, spend most of their time trading, and for them, it’s a full-time job. How come? The thing is that, unlike long-term investors, day traders focus on short-term price movements across various financial assets. They enter and exit positions intraday, often within hours or even minutes. The number of deals can reach over a hundred! That’s why they need all their time and focus to succeed.

What Does a Day Trader Do?

The answer to the question “How much do traders make?” is not an easy one. There are simply too many factors.

As mentioned, day trader activities do not revolve solely around hitting “Buy” and “Sell” buttons. These heroes wake up and start their routine by scanning the chosen market, analyzing technical charts, and reading news and updates. Their trading style is unpredictable: the decisions are based on momentum and breakouts.

Important warning before we go further: this type of trading is highly stressful!

Aside from trading, the rest of the day’s schedule is filled with performance review, strategy adjustments, and journal updates to help them track their progress. So to say, day trading is a mix of technical skill, speed, and psychological endurance repeated daily.

Where Does Day Trading Income Come From?

While we’ve established that day traders earn from short-term price movements, the structure of that income is more nuanced. Profits rarely come from one big win. Instead, they accumulate gradually, over dozens or even hundreds of executions per day.

Many traders rely on small percentage gains that compound over time. A well-managed $1,000 trade with a 2% return allows you to earn only $20. But repeat that consistently across setups, and it adds up.

Professionals recommend starting small and only risking a fraction of the capital, often just 1% per trade. If you have $10,000 in total funds, practice with $100 while protecting the rest.

How Much Do Day Traders Make?

The best part of day trading is that there are barely any limits to how much an average day trader can make. It all depends on the skills, initial capital, platform, and, of course, luck. However, keep in mind that sky-high profits are a rare exception. Those individuals whose profit per day equals millions of dollars have been trading for years, have access to massive capital, and work under favorable market conditions.

According to industry data, achieving a monthly return of 1% to 4% is already considered a solid performance.

Average Day Trader Salary and Income by Experience

Estimates for day trading salary vary significantly. ZipRecruiter reports an average annual income of $94,000, Zippia suggests $116,000, while Glassdoor puts it higher at $178,000.

But it’s crucial to understand what these numbers don’t show. Academic studies, including the one by Brad Barber and Terrance Odean, reveal that only a tiny fraction of day traders consistently earn profits. Most either underperform the market or lose money altogether.

For example, a 2020 study of 20,000 Brazilian day traders found that only 1% earned more than the minimum wage, and the majority failed to improve over time.

So while six-figure incomes do exist, they are typically earned by highly skilled traders with access to specialized tools and funding. Most beginners start in the red, and consistent profitability usually comes after a long learning curve.

Daily, Monthly, and Annual Earnings Breakdown

So, how much do day traders make per month? It depends on several variables: capital, high risk tolerance, win rate, and market conditions. Studies consistently show that over 90% of day traders lose money, but those who do profit tend to scale their gains gradually. Here’s a rough estimate:
These are not guaranteed numbers—just sample ranges seen in real trader profiles and prop firm reports.

Realistic Profit Expectations

Forget the dream of flipping $100 into a million overnight. In reality, most successful traders aim for 1% to 4% monthly growth, which translates to 12% to 50% annually. Compared to traditional investment returns, that’s impressive. But it’s not a chill way to increase your earnings.

There’s another important factor—platform fees, taxes, slippage, and drawdowns. With it, suddenly your “4% monthly” goal becomes a test of endurance. That’s why most experts underline: preserve capital first, then grow.

Funded programs like Hash Hedge give traders access to larger capital of up to $100,000 with an 80% profit hold and access to over 200 crypto assets. But even with this card up your sleeve, the same truth applies: without structure, consistency, and patience, there’s no shortcut to profitability.

Sample Income Scenarios

A beginner might start with $1,000 in capital and place one or two trades a day using micro position sizes. At this stage, the focus is less on profit and more on building skill. Monthly gains might range from $100 to $200, assuming steady improvement and minimal losses.

A part-time trader, could work with a $5,000 account. With more confidence and a tested system, they might average $20 to $50 per day, or roughly $500 to $1,000 per month, provided they maintain discipline and adhere to risk limits.

Full-time professionals can scale significantly. One example: a trader spots a stock gapping up after strong earnings. They buy 500 shares at $50, aiming for a quick exit at $51. When the price hits $50.75, they take a $375 profit before momentum fades. Replicate this across multiple trades a week, and consistent earnings become viable.

What Affects a Day Trader’s Salary?

Technically, day traders don’t earn a fixed salary. Their income depends entirely on performance, specifically on how consistently they can generate profits and avoid big losses. That’s why the term “salary” in day trading is always variable.

Several key factors influence how much a day trader can make: capital size, risk tolerance, trading system, emotional discipline, technology, and even the hours they choose to trade. Optimizing these variables is often what separates consistent performers from those stuck in a cycle of ups and downs. Let’s take a look at the factors.

Capital, Leverage, and Risk

Starting capital sets the ceiling for your trade size and success rate. Under U.S. Pattern Day Trader (PDT) rules, a trader needs at least $25,000 in a margin account to day trade stocks without restrictions. Luckily, other countries offer more freedom. But keep in mind that with a substantial capital, you gain flexibility and can size your positions properly without overexposing yourself.

Leverage can amplify both gains and losses, though it’s a double-edged sword. When used with precision and strict risk controls, such as stop-losses and max daily loss limits, it boosts returns. But without discipline, it accelerates account blowouts. Professionals often allocate only 1% of capital per trade and accept that losses are part of the process.

Strategy and Market Conditions

Your strategy is the core of your income potential. Momentum trading, scalping, breakout entries—these can work if backed by predefined entry/exit rules, risk caps, and trade frequency. Many successful traders rely on technical indicators, volume analysis, and candlestick behavior to time precise entries.

But even the best strategy depends on the market’s mood. Liquidity and volatility also play a role. Trading heavily traded assets like BTC, ETH, and AAPL helps avoid slippage and ensures better execution.

Stay alert to news cycles, earnings reports, or global market openings. These often create sharp but short-lived opportunities.

Trading Hours and Psychology

Ross Cameron, a day trader who turned a tiny $583 account into $10 million in verified and audited profits, claims a time window between 8 a.m. and 10 a.m. Eastern Time (ET) to be the most profitable one. This is due to the market opening and higher volatility. With it, though, comes more risk. But if your knowledge and intuition allow you to partake in such fast trading challenges, go for it.

Another time frame you can try, also referred to as the “power hour,” is between 3 p.m. and 4 p.m. EST.

Days of the week:
On Wednesdays and Thursdays, the patterns are more distinct because the market stabilizes by that time.
On Monday, it’s better to start slow and test the waters after the weekend.
On Friday, Ross advises protecting profits and avoiding unnecessary risks.
Bar chart of trading performance by weekday
Recreate a similar performance chart in the Hash Hedge’s style, though without the exact number of dollars.
Psychology matters as much as timing. Many traders fail because they let fear, greed, or frustration take control of their decisions. Revenge trading or chasing setups out of boredom—these are psychological traps. Successful traders are those who know how to manage emotions and when to stop for the day.

Professional vs. Retail

The answer to the question “How much do successful traders make?” depends on the trader’s type of employment. Institutional traders may earn six to seven figures annually, thanks to larger position sizes, advanced tools, and in-house research. Retail traders, by contrast, rely on their own capital or funding from a prop firm. Some make nothing, others a few thousand per month, and a small group—those with proven systems—scale to full-time income levels.

Types of Day Traders and Their Earnings

Not all day traders operate on the same playing field. Some trade independently with their own savings or prop firm capital, while others work professionally for hedge funds or institutions.

Below, we’ll focus on the most common trader categories based on income potential. Some follow price action or news (event-driven traders), others rely on algorithms (algo traders), or go for micro-movements hundreds of times per day (scalpers). There are also swing traders, sentiment traders, contrarians, and momentum followers. Each group has its own methods, skill requirements, and payout potential.

Full-Time vs. Part-Time

Full-time day traders treat trading like a career: they do not skip a day, follow multiple markets, and dedicate hours to research and execution. If consistent, intermediate or professional traders may earn between $2,000 and $10,000. Part-time traders usually aim for supplemental income, working around jobs or personal schedules.

Stocks vs. Crypto vs. Futures

How much stock traders make depends heavily on volatility and volume. Stocks offer structure and regulation, but they have limited trading hours. Crypto runs 24/7, is more volatile, and has higher short-term potential but greater risk. Futures attract those seeking leverage and exposure to indices or commodities. Each asset class comes with its own risks and income potential.

Day Trading vs. Other Trading Careers

Day trading demands total focus and a deep tolerance for risk. Returns can be fast, but so can losses. Longer-term careers in trading, such as swing trading, portfolio management, or institutional roles, offer a different dynamic. These paths require more patience, research, and broader market analysis. They don’t promise quick gains, but the income is often steadier and tied to performance over weeks or quarters rather than hours.

Ultimately, the “best” career path depends on your goals, time availability, and personality. Below, we cover the differences.

Swing and Long-Term Traders

Swing trading markets move more slowly than day trading ones. Swing traders hold trades for a few days to several weeks, capturing mid-term market movements. Long-term traders may hold positions for months or years, relying on technical analysis rather than short-term price fluctuations. While their income tends to be more consistent, it also takes longer to realize.
Comparison of day traders and swing traders chart
Recreate a similar infographics in the Hash Hedge’s style.

How Much Do Other Traders Make?

Outside the retail and prop trading space, full-time trading roles in finance offer higher income, often accompanied by performance bonuses.
Investment traders at banks often earn $80,000–$150,000 per year, with significant upside via end-of-year bonuses tied to desk performance.
Hedge fund analysts and portfolio managers usually start at around $120,000–$200,000, with senior professionals earning much more, depending on assets under management and alpha generation.
Proprietary traders in firm-based settings can earn anywhere from $0 (if unprofitable) to six or even seven figures, depending on the firm’s model, leverage, and payout structure.
Algorithmic and quantitative traders are also high in demand, often earning better salaries due to the technical skills and math background required.

How to Increase Your Day Trading Income

Day trading is a long game of consistency and steady growth. Market conditions will always play a role, but your habits and techniques are more important. If you want to increase your income as a trader, focus on the things you can control: your entries and exits, your risk exposure, your mindset, and the tools you use. Let’s take a look at the strategies that can actually make a difference.

Risk/Reward Management

One of the most effective ways to boost day trading income is by applying strict risk/reward rules. That starts with setting stop-loss orders. These act as your emergency brake, limiting emotional decisions when trades go south. Combine that with position sizing: don’t risk more than 1–2% of your capital on any single trade.

Stick to trades that offer at least a 1:2 or 1:3 reward-to-risk ratio. Even with a 40–50% win rate, this model effectively manages small losses while providing winners enough room to run. Over time, that structure turns average setups into consistent profit.

Volume and Setup Optimization

Higher volume means better entries and faster exits—the key to executing trades at your intended price. Experienced traders like Ross Cameron recommend focusing on assets that trade at least 25 million shares daily. That kind of volume provides your setups with the flexibility and reliability needed to act quickly. But volume alone isn’t enough. You also need high-probability setups—those that align with your strategy and risk tolerance.

Tools, Mentorship, and Education

One of the most effective habits is maintaining a trading journal. Documenting every trade—your entries, exits, reasoning, outcomes, and even emotions—helps you identify patterns and eliminate costly mistakes.

Beyond that, tracking your win rate, average reward-to-risk ratio, and drawdowns gives you a clearer picture of what’s working and what isn’t. But none of this matters if you’re using outdated platforms. Professional-grade software with low-latency execution and advanced charting is a must. Especially when seconds can cost you thousands of dollars.

And while self-learning is valuable, mentorship can significantly accelerate your progress. Learning directly from experienced traders, through funded programs, online communities, or educational platforms, can save you months or even years.

Hash Hedge offers access to over 200 Tier-1 crypto assets, performance-driven account scaling, and built-in analytics tools. Our funded programs are designed for serious traders ready to grow.

Sign up for a Challenge and trade with up to $100,000 in capital.

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