Day traders face many different problems. For one, they need to trade very large amounts of money in order to combat the slight shifts in prices that occur. Large amounts are needed because the average stock moves only slightly in price throughout the course of a day—day traders only very rarely will keep a position open over night. When you trade with large amounts of money, your risk level increases, thus making day trading an activity with a high dropout rate. Many people fail at day trading for this reason.
Another big problem that day traders come across is taking profits using Forex Arb. Many people don’t know when to start taking money out of their margin accounts and begin using it. Other people will take too much out of their accounts and begin using it when they should be using it to trade. The answer lies in the middle area—you don’t want to take out too much or too little. You want to have enough in your trading account that you are happy with the amount you are making, but not so much that you are afraid of losing it. A day trader’s margin account should begin with at least $10,000 in it, but there is no set in stone answer about how large you should let it grow to. The correct amount to trade with is different for each individual that trades. You want to set aside a sum of money that it doesn’t matter if you lose it all. As your trading capital grows, consider setting aside some of that so you never have to face trading with emotions.