Here’s How I’m Trading One-Day OTC Spikers (2024)

FAQs

How much money do day traders with $10,000 accounts make per day on average? ›

With a $10,000 account, a good day might bring in a five percent gain, which is $500. However, day traders also need to consider fixed costs such as commissions charged by brokers. These commissions can eat into profits, and day traders need to earn enough to overcome these fees [2].

Some traders follow something called the "10 a.m. rule." The stock market opens for trading at 9:30 a.m., and the time between 9:30 a.m. and 10 a.m. often has significant trading volume. Traders that follow the 10 a.m. rule think a stock's price trajectory is relatively set for the day by the end of that half-hour.

The idea behind the first green day OTC is to buy a stock that's closing near its highs to hold overnight. Ideally, the next morning there's a gap up and you sell your shares for a potential profit.

Day traders' earnings vary widely based on experience, skill level, trading strategy, and market conditions. Some may earn a substantial income, while others may not be as successful. It's important to note that day trading involves significant risk and is not suitable for everyone.

A common approach for new day traders is to start with a goal of $200 per day and work up to $800-$1000 over time. Small winners are better than home runs because it forces you to stay on your plan and use discipline. Sure, you'll hit a big winner every now and then, but consistency is the real key to day trading.

I won't keep you in suspense: I made $10 million by day trading. That profession is the lightning rod of the investment world. It seems to generate strong opinions from everyone, even if many people have never done it.

You can do a quick analysis, adjust your trading strategy and get into a good position well after the crowd pulls the trigger on a gap play. Here is how. Let the index/stock trade for the first fifteen minutes and then use the high and low of this “fifteen minute range” as support and resistance levels.

It is not a hard and fast rule, but rather a guideline that has been observed by many traders over the years. The logic behind this rule is that if the market has not reversed by 11 am EST, it is less likely to experience a significant trend reversal during the remainder of the trading day.

The next time you hear about a “can't miss” stock tip, wait 72 hours before doing anything. This gives you time to let the hype die down and think about whether the investment truly aligns with your goals and values.

The OTC Markets Group is organized into three main marketplaces: OTCQX, OTCQB, and OTC Pink, each with different requirements. OTCQX has the most stringent standards, and OTC Pink has almost none. If a company meets the eligibility and disclosure requirements, it can move between the OTC marketplaces.

How do I buy from OTC? ›

Purchases of OTC securities are made through market makers who carry an inventory of stocks and bonds that they make available directly to buyers. Some online brokers allow OTC trades. Full-service brokers offline also can place orders for a client.

That's where the “First Red Day” (FRD) pattern comes into play. So, what exactly is this FRD pattern? It's all about identifying the first day where the opening stock price is higher than the closing price. To spot an FRD, you'd want to see several consecutive days of green candles, indicating a rising trend.

In summary, if you want to make a living from day trading, your odds are probably around 4% with adequate capital and investing multiple hours every day honing your method over six months or more (once you have a method to even work on).

Moreover, emotional control is crucial; day traders must avoid common pitfalls like overtrading or letting emotions drive their decisions. The steep learning curve, combined with the need for discipline, consistent strategy, and the ability to handle losses, makes day trading a hard thing to succeed at.

While there is potential for large gains, there is also a significant chance of significant losses. This is an important point to consider for anyone considering day trading as an investment strategy. Only 3% of day traders make consistent profits.

Day trading is a risky endeavor, with only a small fraction of traders able to make consistent profits. It highlights the importance of doing thorough research and having a sound trading strategy before entering the market. Day traders who use margin for leverage suffer an average return of -4.53%.

Some traders aim to earn 1%-2.5% of their account balance daily. It should be noted that higher risks usually accompany higher returns and that traders who risk more have a higher potential to blow out their trading accounts.

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.