How to Start Day Trading and Make Extra Income (Even as a Beginner)

Instruction

In today’s digital age, many people are looking for ways to make extra income online—and day trading has emerged as one of the most talked-about options. With the right strategy, mindset, and risk management, day trading can become a profitable side hustle or even a full-time career. But before you dive in, it’s crucial to understand how it works, the risks involved, and how to get started properly.

In this guide, you’ll learn everything you need to know about how to start day trading and make extra income, especially if you're a beginner.

What Is Day Trading?
Pros and Cons of Day Trading
Skills and Traits You Need to Be a Successful Day Trader
What You Need to Start Day Trading
Best Markets for Day Trading
Choosing a Trading Platform or Broker
Creating a Day Trading Strategy
Risk Management Techniques
Common Mistakes to Avoid
How Much Money Can You Make?
Final Tips for Success
Conclusion

1. What Is Day Trading?

Day trading involves buying and selling financial instruments like stocks, forex, or cryptocurrencies within the same trading day. The goal is to profit from short-term price movements. Unlike long-term investing, day traders don’t hold positions overnight.

A typical day trader might make dozens of trades in a single day—all based on charts, patterns, and short-term indicators.

2. Pros and Cons of Day Trading

✅ Pros:

Fast results: You can make (or lose) money in minutes or hours.
No overnight risk: All positions are closed by the end of the day.
Flexible schedule: You can choose your hours.
Potential for high returns: With skill and capital, traders can generate consistent profits.

❌ Cons:

High risk: You can lose all your capital quickly.
Stressful: It requires constant attention and mental sharpness.
Costs: Commissions, fees, and spreads can eat into profits.
Not passive: Requires active involvement and decision-making.

3. Skills and Traits You Need to Be a Successful Day Trader

Discipline: Following your strategy without letting emotions interfere.
Patience: Waiting for the right setup is key.
Analytical Thinking: Ability to read charts, patterns, and trends.
Fast Decision Making: Price movements can change in seconds.
Risk Management: Knowing how much to risk per trade.

4. What You Need to Start Day Trading

Here are the basic requirements to start day trading:

✅ 1. Capital

For U.S. stock day traders, you'll need at least $25,000 due to the Pattern Day Trader (PDT) rule. In forex or crypto markets, you can start with as little as $100–$1,000.

✅ 2. Computer and Internet

You’ll need a fast, reliable computer and a high-speed internet connection to ensure smooth execution of trades.

✅ 3. Brokerage Account

Choose a broker with low fees, fast executions, and good customer support (more on this below).

✅ 4. Charting Software or Platform

Many brokers provide built-in charts, but platforms like TradingView, Thinkorswim, or MetaTrader offer advanced tools.

5. Best Markets for Day Trading

📈 1. Stock Market

High volume and volatility make it ideal for short-term trading. Popular stocks: Apple (AAPL), Tesla (TSLA), and Nvidia (NVDA).

💱 2. Forex (Foreign Exchange)

Open 24/5. Offers high liquidity and leverage. Ideal for small accounts.

🪙 3. Cryptocurrencies

Open 24/7. Volatile, but you can start with a small investment.

📉 4. Options & Futures

Advanced instruments with high profit potential—but also complex and risky.

6. Choosing a Trading Platform or Broker

Here are some brokers that are popular with day traders:

Broker	Market	Best For
TD Ameritrade	Stocks/Options	Beginners and U.S. traders
Interactive Brokers	All Markets	Low fees, global markets
eToro	Crypto/Stocks	Copy trading, beginners
Robinhood	Stocks/Crypto	Commission-free (limited tools)
Binance	Crypto	Global crypto trading

Always check:

Fees and commissions
Minimum deposit
Platform tools and features
Regulation and reputation

7. Creating a Day Trading Strategy

You can’t succeed in day trading without a solid strategy. Here are common strategies:

1. Scalping

Quick trades held for seconds or minutes to grab small profits.

2. Momentum Trading

Buying assets that are moving strongly in one direction with high volume.

3. Breakout Trading

Trading assets that break through key support or resistance levels.

4. Reversal or Pullback Trading

Taking positions expecting a trend to reverse.

8. Risk Management Techniques

Risk management is more important than making profits. Without it, even a great strategy can fail.

✅ Key Tips:

Risk only 1–2% of your capital per trade.
Always use a stop-loss order.
Have a maximum daily loss limit to stop trading when things go wrong.
Diversify trades; don’t put all your money into one position.
Review your trades at the end of the day to learn and adjust.

9. Common Mistakes to Avoid

❌ Trading without a plan
❌ Overtrading (making too many trades)
❌ Letting emotions control decisions
❌ Revenge trading after a loss
❌ Ignoring market news
❌ Risking too much on one trade

Learning from your own and others’ mistakes is crucial in this game.

10. How Much Money Can You Make?

This is a tricky question. Your income depends on

Capital size
Strategy performance
Risk tolerance
Discipline

Example:

If you make just 1% profit per day on a $5,000 account, that’s

$50/day
$1,000/month (trading 20 days)
Compounded over time, this can grow—but consistency is key.

Many professional day traders aim for 10–20% per month, but beginners should focus on not losing money first.

11. Final Tips for Success

📘 Start with a demo account first (paper trading) to practice.
🎓 Educate yourself through books, courses, and YouTube tutorials.
🧠 Focus on one market at the beginning.
📓 Keep a trading journal—track every trade and analyze your performance.
🧘 Manage stress and mental health—this is an emotional game.
🚫 Don’t quit your day job until you’re consistently profitable for 6–12 months.
⏳ Be patient—most traders fail because they give up too early.

12. Conclusion

Day trading can be an exciting and potentially lucrative way to earn extra income—but it’s not a guaranteed path to riches. It requires dedication, discipline, and a willingness to learn through trial and error.

If you're willing to put in the effort to understand the market, manage your risk wisely, and refine your strategy over time, day trading can become a rewarding part of your income stream.

Start small. Think long-term. Trade smart.

Suggested Reading & Resources:

“How to Day Trade for a Living” by Andrew Aziz
Investopedia's Day Trading Guide
BabyPips.com (for Forex beginners)
TradingView (for chart analysis)