How much does a stock trader earn per month?

All traders, especially beginner traders, want to earn money trading stocks per month for sure. Because that means that they will have extra income that can be used to increase their trading capital or livelihood in their daily life or even live from trading.trade for living) and rich from stock.

But you have to remember that just like any business. Stock trading is not the right career to make big money in a short time. So how much does a stock trader earn per month and how do you get that profit? Check out the discussion below:

Trader’s income per month

from some sources The ideal monthly stock trading income for beginners and experienced traders with small capital is 1-5% per month. If your trading capital is IDR 10,000,000, the maximum profit you can earn per month is IDR 500,000.

Although the dime is not too large. But the risk you have to sacrifice is also quite small. If you want to earn higher profits You need a little more capital. and have more time to analyze the market high risk, high return.

No matter how small the profit is small but consistent It is useless for you in the first month to make 20% profit, but in the next month it is a huge bonus. Moreover, one of the challenges of trading is to overcome the problem of addiction. Many losing traders actually make a lot of sacrifices just because they want to know how to get profits from trading and huge losses. So it doesn’t matter if the name is small or not, as long as it’s given on a monthly basis.

What percentage of stock traders lose?

More than 70% of stock investors experience losses. Although the loss occurs naturally And traders should learn from these losses. But these losses must be minimized. To prevent losses in the trading world from spreading to real world problems.

So how to reduce the risk of stock trading? First of all, you need cold money to trade. The cold money is really the money you allocate for this single activity, so your trading losses will not interfere with your daily needs in the real world.

Second, choose stocks to trade carefully. Avoid small-cap stocks with sudden spikes in prices. Make sure you do a good fundamental and technical analysis of the stock. And don’t be fooled by the news of rising stock prices that don’t have a clear origin.

Third, don’t forget to set a stop loss. Careful analysis and discipline doesn’t mean you can keep making profits. Remember to set Stop Loss in case the stock price moves in a direction that exceeds your expectations.

Skills that stock traders need for profit

There are many skills that a stock trader must have in order to succeed in making a profit. These skills include various skills. necessary to trade as well as general skills Here are some skills that stock traders need to make profits:

1. Technical analysis skills

Analyzing technical indicators and price patterns is one of the keys to determining the selling and buying points of a stock to make a profit. Although now there are many trading platforms that offer installation of various technical indicators. Simple and practical But traders still need to learn about the stories and formulas behind these technical indicators.

This is because the automatic installation of technical indicators is just a tool. While the strategy used to plan the installation remains the trader’s own. This strategy is not properly prepared. If the trader does not understand what is behind the formation of the indicator

2. Fundamental Analysis Skills

Many sources say fundamental analysis has little effect on short-term trading. This may be true considering that fundamentals tend to have an impact on long-term investments. However, traders need expertise in this area to be able to choose stocks that will benefit from the latest developments in fundamentals.

In addition, this skill is essential to help traders not get stuck in trading. fried basil Which of course will have a negative effect. Because the decline in fried stock prices is often unpredictable by unscrupulous traders who are not behind the rise in asset prices.

3. Money Management Skills

as mentioned above cold money trading It will help you reduce your trading risk by avoiding losing trades from spreading to the real world. If you check further Using cold money means that you have good financial planning skills as well.

In this case, you need to be sure that the money you spend. no Money to meet daily needs or to pay off debts, installments, and credit. You are not advised to use funds from debt as equity or as a deposit. Your family’s daily needs will not be disturbed. And the installment payment of various daily needs remains safe.

4. Time Management Skills

Of course, as a human being in society Humans are not only able to focus on just one task every day. There were times when he had to set aside time to do things from work, cooking, cleaning himself. until the rest This ability to divide this time is important for traders who want to profit from trading.

Because trading not only takes money. but also the time resource You need to spend tens of minutes to hours analyzing the market and executing the trading strategies that you have developed earlier. This time management skill is especially important if you are trading stocks on the foreign exchange and not trading from your primary source of income.

5. Emotional Management Skills

In addition to time management skills They also have emotional management skills. A beginner trader who wants to be successful requires discipline and consistency. This discipline and consistency won’t come without good mood-management skills.

What are good emotional management skills? Simply put, you don’t trade when you’re angry or very happy. Don’t trade when you are tired. Make sure before your trading session starts. You’ve calmed down too much of both the positive and the negative. So as not to disturb your concentration, concentration and trading decisions.

That’s a description of how much stock traders earn per month and what skills are needed to earn that income. These skills could not be obtained immediately. It takes patience and patience to build the above skills and become a successful trader.