Wednesday, February 10, 2021
With the debate having been settled as to whether the most efficient approach to trading would be to swing trade, day traded, scalp, position trade, or trade based on market structure; I wanted to get a visual picture of what 1.8% compounded daily for 220 days would actually look like.
With this graphical depiction in hand, establishing a few milestones seemed to follow naturally. So then, starting with the beginning of this week, the plan is to increase today’s account balance to one thousand dollars by August 6, 2021; two thousand dollars by September 30th; three thousand by October 29th; four thousand by November 26th; and five thousand by December 10, 2021.
I’m not being very precise here (for example, holidays on which one or more markets are closed are not being taken into consideration) for two reasons:
First, I originally planned to grow my account organically, increasing its size through the use of internal funds only. However, as a practical matter, I now have external sources of finance that could hypothetically be added to my initial balance...and in fact, this is what I intend to do, God willing. So then theoretically, the rate at which I can increase the typical size of my trades from 0.01 lots to 1 whole Lot per transaction should accelerate accordingly.
Second, there are likely to be some (if not many) days on which I record gains in excess of 1.8%, as occurred on December 21, 2020, when I enjoyed a return in excess of 20% in a single day...
In other words, I don't really expect it to take me the entire 220 days to possess a $5000 trading account—hence the lack of motivation to be exact.
With the debate having been settled as to whether the most efficient approach to trading would be to swing trade, day traded, scalp, position trade, or trade based on market structure; I wanted to get a visual picture of what 1.8% compounded daily for 220 days would actually look like.
With this graphical depiction in hand, establishing a few milestones seemed to follow naturally. So then, starting with the beginning of this week, the plan is to increase today’s account balance to one thousand dollars by August 6, 2021; two thousand dollars by September 30th; three thousand by October 29th; four thousand by November 26th; and five thousand by December 10, 2021.
I’m not being very precise here (for example, holidays on which one or more markets are closed are not being taken into consideration) for two reasons:
First, I originally planned to grow my account organically, increasing its size through the use of internal funds only. However, as a practical matter, I now have external sources of finance that could hypothetically be added to my initial balance...and in fact, this is what I intend to do, God willing. So then theoretically, the rate at which I can increase the typical size of my trades from 0.01 lots to 1 whole Lot per transaction should accelerate accordingly.
Second, there are likely to be some (if not many) days on which I record gains in excess of 1.8%, as occurred on December 21, 2020, when I enjoyed a return in excess of 20% in a single day...
In other words, I don't really expect it to take me the entire 220 days to possess a $5000 trading account—hence the lack of motivation to be exact.
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