1% profit per day
- Thread starter lojze
- Start date
I respectfully disagree. I believe 1% average gain per day is doable for most accounts. Especially for small accounts.
50k account x .01 = 500$ isn't it ! = +25 NQ pts.
5k account x .01 = 50$ isn't it ! = + 2.5 NQ pts.
So does it mean that if I can achieve this, then I am a "great" trader? Daaaaayummm !!!
50k account x .01 = 500$ isn't it ! = +25 NQ pts.
5k account x .01 = 50$ isn't it ! = + 2.5 NQ pts.
So does it mean that if I can achieve this, then I am a "great" trader? Daaaaayummm !!!
In 2000, I averaged almost exactly 1% a day, although most of the gain was probably in the top 20 days out of 250 trading days.
If you can average 1% a day for the year (about 250 trading days), then your original account will grow by about 1200% if the gains are spread out evenly and you use your full account.
APY = (1 + 0.01/day)^250 days = (1.01)^250 = 12 = 1200%
In 2001, after a gangbuster start (Jan 3rd surprise 50 bps rate cut, thank you greenspan!), I didn't even make 100% APY, much less 1200%, due to law of large numbers (7 figure acount), falling prices (no more QCOM up 20 points in a day), taking less risk, and I no longer trade 100% of my account.
I'm more focused on the absolute dollar gain. The % this, % that numbers are fun to look at, but it doesn't mean much because it is all relative to your acount size.
Fleance
If you can average 1% a day for the year (about 250 trading days), then your original account will grow by about 1200% if the gains are spread out evenly and you use your full account.
APY = (1 + 0.01/day)^250 days = (1.01)^250 = 12 = 1200%
In 2001, after a gangbuster start (Jan 3rd surprise 50 bps rate cut, thank you greenspan!), I didn't even make 100% APY, much less 1200%, due to law of large numbers (7 figure acount), falling prices (no more QCOM up 20 points in a day), taking less risk, and I no longer trade 100% of my account.
I'm more focused on the absolute dollar gain. The % this, % that numbers are fun to look at, but it doesn't mean much because it is all relative to your acount size.
Fleance
But you have to be very good. Each day, we see the markets move 1 or 2 % in one direction or the other. If you are a very sharp trader, and can catch those moves without too many losing trades, then sure, its doable. But, most folks wont be able to. No fear though, if you can average 50 basis points (.5%) per trading day, you will still be a multi-millionare in a few years. (Assuming you start with around 25K). If you do it, you should write a book about the process, you could make another seven figures of the book alone
-Good luck!
-Good luck!
It's all relative. For me, 1% is low. I trade with a constant $30,000-$35,000 account and average $434 a day. Worse case, $434 / $35,000 = 1.2% . It's is definitely doable.
Good Luck
Good Luck
Been through this before. Obviously I am the worst trader at ET. I do not average close to 1% a day.
I guess it has to do with size. I have said here before that in truth I average a bit more than 1/10 th of 1 percent per day. Maybe it's because sometimes I lose money too.
And I virtually NEVER use all my buying power. So that too reduces my percentage. Money not risked is earning money...this is sometimes not taken into consideration.
Bottom line, I don't think a daily percentage is meaningful. For too many reasons to re-state. I have done it before.
If I could average 1% per day, I would soon have all the money in the world. And not just because of compounding. But people would be lined up at my door to give me their money to invest.
Wait.....that wouldn't work either, because there would be no market. Who would I have to trade against?
I guess it has to do with size. I have said here before that in truth I average a bit more than 1/10 th of 1 percent per day. Maybe it's because sometimes I lose money too.
And I virtually NEVER use all my buying power. So that too reduces my percentage. Money not risked is earning money...this is sometimes not taken into consideration.
Bottom line, I don't think a daily percentage is meaningful. For too many reasons to re-state. I have done it before.
If I could average 1% per day, I would soon have all the money in the world. And not just because of compounding. But people would be lined up at my door to give me their money to invest.
Wait.....that wouldn't work either, because there would be no market. Who would I have to trade against?
Most young traders (guys under 70) who have experience have the ability to make 1% per trading day, but are limited by their mastery of their trading software.
It is quite rare that you see a home-trader even with TradeStation or TWS who really know how to rapidly execute baskets, boos and all the other tools available to them. These tools allow the trader to move into a semi-pro status and operate without too many disadvantages with an above a $50,000 account. Their percentage should be comparable profitability to those under 50,000. If you can't make 1% with a small account, say 25,000 then you are either new, have poor training or are in the wrong business.
I have seen a lot of people who failed as traders in big firms, then ended up in business and became millionaires. My observation is many of the people attracted to trading should be in business to attain their full potential whether it is a pizza franchise for the workaholics or as a corp exec for the MBAs.
It is quite rare that you see a home-trader even with TradeStation or TWS who really know how to rapidly execute baskets, boos and all the other tools available to them. These tools allow the trader to move into a semi-pro status and operate without too many disadvantages with an above a $50,000 account. Their percentage should be comparable profitability to those under 50,000. If you can't make 1% with a small account, say 25,000 then you are either new, have poor training or are in the wrong business.
I have seen a lot of people who failed as traders in big firms, then ended up in business and became millionaires. My observation is many of the people attracted to trading should be in business to attain their full potential whether it is a pizza franchise for the workaholics or as a corp exec for the MBAs.
Good point, but I believe for most people on this board you have to be less subtle to get your point across: When you ask people here how many ES points per day per contract they average, most say +4 points or more. The overwhelming majority does not seem to understand the meaning of the word "average". It's kind of like when you hear a hooker who is proud of her profession stating she makes $1000 "every single night", meaning approximately once a year there comes a night when she makes a few hundred bucks.
Don't you think the IRS would crack down on a girl who makes $365,250 cash per year, I mean they could afford to have three agents working on such a case full time for months.
Similarly, if you could average +4 ES points per day per contract for half a year, you would be able take a $10,000 account to $1b in 6 months even if you had to comply with a retail broker's margin requirement.
I guess we will have a few fresh billionaires here in a few weeks:
http://elitetrader.com/vb/poll.php?s=&action=showresults&pollid=131
