What Is a Day Trader’s Average Salary/Income? 2025 Stats

The average income of a day trader varies widely, depending on factors like experience, strategy, and market conditions. While some traders can make over $100,000 per year, many others struggle to break even. Understanding the potential income and the variables that impact it is crucial for anyone considering a career in day trading.

Don’t miss this article because it explores the different types of day traders and their respective earning potentials, giving you a clearer picture of where you could fit in.

I’ll address the following…

• What Is a Day Trader and What Do They Do?
• What Is the Average Income of a Day Trader?
• What Types of Day Traders Are There and What’s Their Earning Potential?
• What Is the Career Longevity of Day Trading?
• How Can a Day Trader Increase Their Earning Potential?
• What Are the Financial Risks and Success Rates in Day Trading?

Let’s get to the content!

What Is a Day Trader?

A day trader is someone who buys and sells financial instruments within the same trading day. The goal is to capitalize on small price movements in highly liquid assets. In my years of trading and teaching, I’ve seen that day trading isn’t for everyone; it requires a specific skill set and risk tolerance.

What Is the Role of a Day Trader?

The role of a day trader is to provide liquidity to the markets. They aim to take advantage of short-term movements in price. Day traders often use leverage to amplify returns, which also increases the risks involved.

What Is the Average Income of a Day Trader?

The average income of a day trader varies based on experience and skill. Some traders might pull in six figures, while others struggle to stay profitable — especially early on. A seasoned trader with a disciplined strategy and a larger account size may exceed the income of a typical salaried job, but that income can fluctuate significantly from month to month.

Trading income is influenced by market volatility and often affected by market conditions. Bull markets can create more favorable setups, while income might decrease during economic downturns. In the long term, profitability is determined by both winning and losing trades, and it reflects the trader’s ability to predict market movements with consistency.

That income isn’t guaranteed and comes with risks. Day trading also involves trading costs and fees, which can eat into profits if you’re not careful. A strong understanding of position sizing, tax obligations, and strategy optimization is critical for managing your bottom line.

How Trading Income Works

Trading income is determined by a number of overlapping factors — and it’s not as simple as looking at your P&L at the end of the day.

It’s impacted by how often you trade, how effective your strategy is, and what kind of tools you’re using. Advanced trading tools can enhance your ability to act on market trends and execute trades quickly, which can boost your potential returns. But even with the best tools, income is not guaranteed.

Trading performance also requires regular tracking and review. That includes recognizing when your setups work — and when they don’t. Trading income is often misleading if you’re not accounting for commissions, spreads, platform fees, and taxes.

It’s also subject to taxation rules specific to trading. In the U.S., most day trading income is taxed as short-term capital gains — but if you qualify as a professional trader, different rules may apply.

Types of Day Traders

There are different types of day traders, each with their own strategies and income potential.

Keep in mind that this is a rough breakdown — all of these trader types can find value in joining a day trading community. Being part of a day traders group can offer valuable insights, tips, and even emotional support. To learn more about the benefits of joining a day traders group, check out my guide on Day Traders Group.

Professional Day Traders

Professional day traders often work for a trading firm and have access to more resources. They usually have a higher earning potential due to the larger capital at their disposal.

Part-Time Day Traders

Part-time traders often juggle day trading with other jobs. Their income can be less predictable but offers more flexibility. I’ve taught many part-time traders who have successfully incorporated trading into their daily lives.

Swing Traders

Swing traders hold positions for several days to capitalize on expected upward or downward shifts in price. This strategy can be less stressful but requires a deep understanding of market fundamentals. I often discuss the nuances of swing trading in my advanced courses.

Trading Sessions and Strategies

Day traders operate in different market sessions and employ various strategies to maximize their profits.

Regular Market Hours Trading Strategies

Trading during regular market hours is the most common. Strategies like trend following and range trading are often employed. In my trading career, I’ve found that understanding market trends is crucial for success in this session.

Pre-Market and After-Hours Trading Strategies

Trading in the pre-market and after-hours allows traders to capitalize on news events that impact stock prices. However, these sessions are often more volatile and require a different set of strategies. I cover these specialized strategies extensively in my advanced courses.

Intraday Trading Strategies

Intraday strategies focus on short-term trades within the market day. These can be high-stress but can also offer high rewards if executed correctly. My years of trading have taught me that intraday trading is not for the faint of heart.

Scalping Strategy

Scalping involves making a large number of small trades to profit from minute price movements. It’s a strategy that requires quick decision-making and a solid understanding of market mechanics. I often share my own scalping strategies and the lessons I’ve learned from them in my courses.

Day Trading Income Potential and Career Longevity

Day trading income is not always indicative of future earnings. It can be highly rewarding, but it’s a career built on discipline, adaptability, and constant learning. The earning potential often depends on the amount of capital invested and is impacted by the frequency of trades. Higher trading volume can amplify gains — but it also increases the stakes.

Successful traders often reinvest their earnings to grow their accounts. That means their income is often reinvested to scale trades and pursue bigger opportunities.

Career longevity requires more than just hot streaks. It requires regular analysis to optimize strategies and benefits from continuous education and training. The best traders embrace a growth mindset and treat every trade as part of a broader performance review. They also understand that income can be supplemented by other trading-related income sources — like mentoring, creating content, or affiliate partnerships.

How Can a Day Trader Earn More Money?

There are several ways a day trader can increase their earning potential.

Trade in Foreign Markets

Trading in foreign markets can offer more opportunities but comes with additional risks like currency fluctuations. I’ve traded in various foreign markets and share those experiences in my courses.

Pursue Education and Certification

Continuous learning and getting certified can add credibility and potentially lead to more profitable trading strategies. I can’t stress enough the value of ongoing education, which is why I offer a range of courses for all levels.

Taking a day trading class can sharpen your skills and give you a competitive edge. To find a class that suits your needs, read my article on Day Trading Classes.

Research Other Methods of Trading

Diversifying trading methods can help mitigate risks and increase potential profits. For example, incorporating swing trading or options can provide new avenues for income. I often explore these alternative methods in my advanced courses.

When Is Trading Most Profitable?

For many traders, income is higher in bull markets — when broader enthusiasm lifts volatility and volume. High-profile earnings seasons, Fed announcements, and political events can all create conditions that supercharge trading setups. On the flip side, income might decrease during economic downturns, as market liquidity dries up and trades become more uncertain.

That’s why income in this profession is not linear. It can fluctuate significantly from month to month, even for experienced traders. And just like income varies, so does opportunity — which is why ongoing education, detailed tracking, and adaptive strategies are essential.

Smart traders also use slower markets to build their watchlists, refine setups, and practice using simulations. Long-term profitability benefits from preparation during the off-season as much as action in peak months.

How To Get Started in Day Trading

Getting started in day trading requires preparation and strategy … and a top trading platform.

When it comes to trading platforms, StocksToTrade is first on my list. It’s a powerful trading platform that integrates with most major brokers. 

I use StocksToTrade to scan for news, tweets, earning reports, and more — all covered in its powerful news scanner. It has the trading indicators, dynamic charts, and stock screening capabilities that traders like me look for in a platform. It also has a selection of add-on alerts services, so you can stay ahead of the curve.

Grab your 14-day StocksToTrade trial today — it’s only $7!

You also need to do the following …

Educate Yourself

The first step is to educate yourself about the markets and trading strategies. There are numerous courses, including some that I offer, that can provide a strong foundation.

Choose a Trading Style

Decide whether you want to be a day trader, swing trader, or something else. Your trading style will dictate the strategies and tools you’ll need.

Set Up a Trading Account

You’ll need a brokerage account to start trading. Look for brokers that offer low fees and robust trading platforms.

Equip Yourself with the Right Tools

Having the right tools, like a fast computer and multiple monitors, can make a significant difference in your trading efficiency.

Develop a Trading Plan

A well-thought-out trading plan is essential. It should outline your strategies, risk tolerance, and profit goals.

Practice with a Demo Account

Before going live, practice with a demo account to get a feel for the trading platform and to test your strategies.

Is It Profitable To Be a Day Trader?

Day trading can be profitable, but it’s also risky. The majority of day traders lose money, especially those who are new to the market. However, with the right strategies and risk management, it’s possible to make a significant income. I’ve seen traders turn their fortunes around by simply adjusting their risk management strategies.

Profitability in day trading is not just about strategies; it’s also about adhering to certain rules that govern this type of trading. Understanding these rules can make the difference between success and failure. To get a comprehensive understanding of the rules that can impact your day trading profitability, check out my guide on Day Trading Rules.

Key Takeaways

Day trading is a high-risk, high-reward career. Your earning potential is influenced by your skill level, the capital you can invest, and the strategies you employ. Continuous education and risk management are key to long-term success.

There are a ton of ways to build day trading careers… But all of them start with the basics.

Before you even think about becoming profitable, you’ll need to build a solid foundation. That’s what I help my students do every day — scanning the market, outlining trading plans, and answering any questions that come up.

You can check out the NO-COST webinar here for a closer look at how profitable traders go about preparing for the trading day!

What are your day trading goals? Let me know in the comments!

FAQs

What Is the Average Income of a Day Trader?

Day trading income varies based on experience and the amount of capital invested. While some successful traders make over $100,000 a year, most beginners make far less — and some lose money. Trading income also depends on the market environment and is not guaranteed.

How Often Do Day Traders Earn a Consistent Income?

Consistent income from day trading is rare and requires strategy refinement, discipline, and capital management. Even for skilled traders, earnings can fluctuate significantly from month to month and are often affected by market conditions.

Do Day Traders Pay Taxes Differently?

Yes — day trading income is subject to taxation rules specific to trading. In most cases, profits are taxed as short-term capital gains. Traders who qualify for trader tax status may be able to deduct more expenses or use mark-to-market accounting.

Can You Live Off Day Trading?

Yes, but it’s challenging. Successful full-time traders often rely on large accounts, supplemental income sources, and strict risk management. Income also benefits from continuous education and using advanced tools that improve trading decisions.