1% a day consistently: possible?
- Thread starter stephencrowley
- Start date
There are people who talk smart and trade smart, there are also people who talk smart and trade stupid, there are also people who talk stupid but trade smart, and finally there are people who talk stupid and trade stupid.
It's easy to find samples that proof your point of view. Just pick the combination that suites you most.
The only way to find it out is to put at least 10 000$ on the table. And believe me you will never forget it. If it will be a pleasant memory or not is still the question. But i have already a fairly good idea about the outcome.
Just out of curiosity: why don't you fire the "garbageman"?
Who is the idiot: the garbageman or the one who pays him?
An old adage: "You can't bank a %, you can only put $ in the bank."
In longer term trading or investing % return is a useful benchmark, especially if your goal is captial appreciation rather than income. As the time frame shortens and the goal is current income % return becomes less relevant.
For example in day trading % return is almost irrelevant because meaningful results are limited by the ability to use all of your capital. Trading a $100k account, even using 4x leverage, you can still only trade 8,000 shares of a $50 stock at a time. To make 1% ($1,000) you only need to take about 15 cents out of the market to make this after fees. Even with lower priced stocks and somewhat larger accounts you can still trade. The point is that you can get orders filled and not move the market, assuming you are trading stocks that have good volume.
As the account grows this becomes impossible. At $1 million account size you now need $10k to make 1%, but the factors limiting your ability to trade haven't changed. In the example above if you take the same 15 cents out of the market you need to move over 66,000 shares. Not as easy as moving 8,000. What that means is that you can only utilize part of your capital to generate 1% on the total amount. The rest just sits there.
I know the example is simplified , but the purpose is to illustrate that at some point you simply can not get in and out of the market to generate 1%. But you can still make $1,000 per day ($250,000/year) and put the excess capital in another investment.
In longer term trading or investing % return is a useful benchmark, especially if your goal is captial appreciation rather than income. As the time frame shortens and the goal is current income % return becomes less relevant.
For example in day trading % return is almost irrelevant because meaningful results are limited by the ability to use all of your capital. Trading a $100k account, even using 4x leverage, you can still only trade 8,000 shares of a $50 stock at a time. To make 1% ($1,000) you only need to take about 15 cents out of the market to make this after fees. Even with lower priced stocks and somewhat larger accounts you can still trade. The point is that you can get orders filled and not move the market, assuming you are trading stocks that have good volume.
As the account grows this becomes impossible. At $1 million account size you now need $10k to make 1%, but the factors limiting your ability to trade haven't changed. In the example above if you take the same 15 cents out of the market you need to move over 66,000 shares. Not as easy as moving 8,000. What that means is that you can only utilize part of your capital to generate 1% on the total amount. The rest just sits there.
I know the example is simplified , but the purpose is to illustrate that at some point you simply can not get in and out of the market to generate 1%. But you can still make $1,000 per day ($250,000/year) and put the excess capital in another investment.
I agree with you. The market is the limitation. I posted that remark already 25 pages ago.
But there was never said " on all your capital", in fact there was never an amount mentioned.
Most of us will immediately sign for 250,000 $ a year.
I don't know about 1% a day, but 30% a year is certainly VERY possible... consistently...
Quote from OddTrader:
Which traders practically would really care much how many down weeks in 16 years? LOL.
Certainly not me.
But the poll question is what it is:
Is it possible to "consistently" make 1% a day with no down weeks.
That's a 250% return per year (the word consistent implies over several years), without having a single down week.
I personally think it is absurd, but I've certainly been wrong before.