1.4K Shares Share Share The majority of traders earn more than $100,000 per year, according to research from brokerage firm Wealthfront.
That’s more than triple the earnings of just 10% of those who earn less than $40,000.
That includes some of the highest-earning traders, who earn as much as $160,000 annually.
However, some traders, including those at the top end of the income spectrum, may be earning far less.
For example, one trader who earned $160 million between 2015 and 2017, according the report, earned less than half of that on his trade, making only $10 million in commissions.
But if he’d made more trades, he’d have made at least $100 million.
That same trader, on the other hand, made more than twice as much trading than he earned in commissions, making more than a quarter of his money.
“That’s the difference between making a lot and making little,” says David T. Fenton, an economist and professor of management at the University of Southern California.
Fenton says that as a general rule, it’s better to earn more in one area than in others.
“I think it’s a good idea to try and make your trades more often than you make them,” he says.
“You can also try and be more aggressive in that area,” he adds.
“It’s probably not the best idea to just say, ‘Oh, I’m not going to make this trade because it’s not profitable.'”
But Fenton says it’s probably better to make those trades.
He says it will help you to better identify and invest in the stocks you should buy or sell.
“Trading isn’t something that will magically work out for you,” he cautions.
“If you’re going to do it, make it work.”
Read more:Investing in the stock market is like making a bad investment: It’s risky, but it pays offFor more stock market advice, read our stock market guide and our stock trading advice.
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