Hotspot trading is often considered a profession with high barriers to entry, but as long as you have ambition and patience, you can make a living trading (even with little or no money). The reality is that consistently making money as an intraday trader is a rare achievement. It's not entirely impossible, but it's certainly an unwise way to invest your hard-earned money. For those who are thinking about day trading for a living, it's important to understand some of the pitfalls that can arise.
You might be wondering, “How much can you earn in the stock market?” Well, profits can go up to Rs. If you want to make money with stocks, you don't have to spend your days speculating on which individual company stocks might go up or down in the short term. Since you won't be able to execute as many trades, each trade must be for a significant sum and the more money you invest in a trade, the more you will expose your portfolio to risk. The dictionary definition of gambling is the practice of risking money or other bets on a game or bet.
You can also contribute an unlimited amount of money to taxable accounts in a year; 401 (k) s and IRAs have annual limits. Taxable accounts can be a good place to deposit your investments, which usually lose a smaller part of their tax income, or to allocate the money you need in the coming years or decades. In fact, even the most successful investors, like Warren Buffett, recommend that people invest in low-cost index funds and keep them for years or decades until they need their money. While there's no guarantee that you'll make money or that you can predict your average rate of return over a given period, there are strategies you can master to make profits and minimize losses.
However, many people who trade independently for a living use day trading strategies, and studies have shown that most intraday traders lose money in the long term. Whichever option you choose, both also allow you to avoid paying taxes on the profits or income you receive while the money is in the account. There is a large degree of variation in the average salary of an intraday trader, as some intraday traders earn six figures and others lose money. Meanwhile, old taxable investment accounts don't offer the same tax incentives, but they allow you to take out your money whenever you want for any purpose.
However, the general rule is that, once you deposit your money in a tax-advantaged retirement account, you shouldn't touch it until you've reached retirement age. Day traders often lose money, as many individual investors have undiversified portfolios and operate actively and speculatively and often to their detriment. While everyone wants to invest all their money in the next Apple (AAPL) or Tesla (TSLA), the truth is that most investors, including professionals, don't have a solid track record of predicting which companies will offer disproportionate returns. Whether they trade on their own account or work for a trading company and use the company's money, intraday traders don't usually receive a regular salary.
