There are many factors to consider before answering this question. But if you look at the elements you need to be a successful day trader above, you can quickly get an answer. First, however, let’s assume you started day trading with a capital of $1000.
In your strategy, you place a maximum of 15 trades a day (too many), lose 5 and win 10. You are looking at a total of 60 pips per day.
As mentioned, you make roughly $20 a day. For a month, which is 20 days since you only trade Monday to Friday, it will be:
$20 x 20 days = $400 a month.
If you consider commissions and trading and withdrawing fees, you remain with roughly $330
In case you plan to start trading with an initial investment of $10000, you will make;
1% x 10000 = $100 risk per trade, using a lot size of 0.10 because the amount is bigger
0.1 x 60 = 6 but you make $60 because each pip with the lot size is $1
$60 x 20 days = $1200 adding up to $14,400 per year. However, if you are using a bigger lot size you will make more.
On the other hand, a $100 account will make;
$100 with a lot size of 0.01 because it is a small account
0.01 x 60 = 0.6 which is $6 per day.
$6 x 20 = $120 per month
Not bad, right? However, remember that the forex is never a perfect market as these figures look. Getting 100% turnout every day is not typical, let alone simple. However, the aim is to keep losses minimal. You cannot eliminate them entirely.
The truth is that approximately 1% of day traders become successful at the end of the year. This shouldn’t scare you because you are amongst them if you follow your strategy. How much time you invest in learning and understanding the market is critical for profitable trading.
Something fundamental not mentioned by many is trading psychology. Psychology in trading is something people should be willing even to pay to acquire. The ability to keep emotions out of trading is vital.