Its really based on what the markets are willing to dish out.
20k to 500k
- Thread starter pjmalcolm1
- Start date
<i>"2,500% annual return? Incredibly unrealistic."</i>
Incomplete statement. The rest of that is, "... for anyone but a skilled, veteran trader."
It's not an incredible feat to trade $20k to $500k profits in a year. You need some volatility, preferably a sustained trend and good skills in the eminis. Simple (never easy) as that.
And no, it doesn't extrapolate out to earning five bazillion dollars by third year. There is a saturation point of max contract size and max points per month possible... the ceiling is way below what big CTAs and funds are capable of pushing. Please don't compare individual trader's (speedboat) to fund managers' (ocean liner) agility.
Incomplete statement. The rest of that is, "... for anyone but a skilled, veteran trader."
It's not an incredible feat to trade $20k to $500k profits in a year. You need some volatility, preferably a sustained trend and good skills in the eminis. Simple (never easy) as that.
And no, it doesn't extrapolate out to earning five bazillion dollars by third year. There is a saturation point of max contract size and max points per month possible... the ceiling is way below what big CTAs and funds are capable of pushing. Please don't compare individual trader's (speedboat) to fund managers' (ocean liner) agility.
Stock,
the poster is a newbie and wants to turn $20k to $500K in a year. You answer with 3 years that it took you to make a certain target which is wonderful, fascinating, interesting but completely irrelevant.
It is quite silly to simply say.. anything is possible as that provides nothing.
The original question was whether this newbie can turn $20k into $500K and I will say no 100 out of 100 times because a newbie can never learn what is needed to make that kind of money without risking most of it on a gamble that comes through. That is not investing, that is a coin toss.
Now if you made consistent money over 3 years that is a different issue.
the poster is a newbie and wants to turn $20k to $500K in a year. You answer with 3 years that it took you to make a certain target which is wonderful, fascinating, interesting but completely irrelevant.
It is quite silly to simply say.. anything is possible as that provides nothing.
The original question was whether this newbie can turn $20k into $500K and I will say no 100 out of 100 times because a newbie can never learn what is needed to make that kind of money without risking most of it on a gamble that comes through. That is not investing, that is a coin toss.
Now if you made consistent money over 3 years that is a different issue.
My response was not meant to imply that the feat is impossible to even a skilled, veteran trader. That comparison was not the intention.
The bluntness was to instill upon the 17-year old OP the dangers in having delusions of grandeur. That without a broad understanding of the markets, trading, tools, money management, risk analysis, etc he most certainly faces losses and/or blowup attempting to achieve such a goal. In his very limited participation in the following 9 pages of this thread, it is readily apparent he does not inhibit the aforementioned knowledge base.
a few yrs ago ... this "newbie" could have made alot of money
even starting with less than 10K
making 500K ... nope ... maybe 100K if lucky and he finds some
"edge" that others have not taken from him
however ... "edges" come and go ... finding an edge takes either luck or skill or both and might take yrs for the "newbie" to find
hopefully he will not have "blown up" or "given up" in his pursuit
perhaps this newbie can be the next "buffet" ?
and make money hand over fist in a lifetime of investing
rather than a series "forex" or e-mini "rags to riches" quickie trades
even starting with less than 10K
making 500K ... nope ... maybe 100K if lucky and he finds some
"edge" that others have not taken from him
however ... "edges" come and go ... finding an edge takes either luck or skill or both and might take yrs for the "newbie" to find
hopefully he will not have "blown up" or "given up" in his pursuit
perhaps this newbie can be the next "buffet" ?
and make money hand over fist in a lifetime of investing
rather than a series "forex" or e-mini "rags to riches" quickie trades
These threads pop up every month.
Three Pervasive Myths in the Trading World
By Brett N. Steenbarger, Ph.D.
Myth #2: Anyone, with dedicated effort, can get to the point of trading for a living. That is nonsense. How many people make their living from acting or musical performance? What proportion of people playing sports can actually make their livelihood from athletics? Many people play chess or poker, but how many can sustain a living from it? ...
If a person were to make 25% per year on their accounts year after year, they would be among the worldâs most successful money managers. Most money managers of mutual funds, hedge funds, and pension funds cannot sustain such performance. If, however, a trader begins with $50,000 of capital, he or she may not be content with $12,500 of profit. This leads the trader to accept huge leverage and court a risk of ruin when an inevitable string of losing trades occurs.
Three Pervasive Myths in the Trading World
By Brett N. Steenbarger, Ph.D.
Myth #2: Anyone, with dedicated effort, can get to the point of trading for a living. That is nonsense. How many people make their living from acting or musical performance? What proportion of people playing sports can actually make their livelihood from athletics? Many people play chess or poker, but how many can sustain a living from it? ...
If a person were to make 25% per year on their accounts year after year, they would be among the worldâs most successful money managers. Most money managers of mutual funds, hedge funds, and pension funds cannot sustain such performance. If, however, a trader begins with $50,000 of capital, he or she may not be content with $12,500 of profit. This leads the trader to accept huge leverage and court a risk of ruin when an inevitable string of losing trades occurs.
is it near impossible to make a living starting at 50k without a secondary job? if the best money managers are unable to make 25% most of the time, what hope do we have?
Being that I made my money in the music business touring, producing and mixing, etcc and that my wife is a professional singer/actor
Meaning this is our sole source of income prior to trading on a full time basis.
as in anything it requires dedication (and in my biz, some talent. LOL)
Trading to me is like music. all these markets have a rhythm. I merely trade the rhythm.
SO far I have been quite successful and as in any business, if you manage your money properly, when the inevitable downturn (choppy market) comes, you can ride it out till the next Boom hits.
Personally, I had the Corporate job for 6 years. Wasnt me. I quit and struck out on my own and havent looked back. Trading, IMO is an extension of all I do, not to mention am I addicted to it.
To make the income of one show in one day trading instead of doing sound-check, arguing with the promoters, etc. and all the stress that comes in being a road manager/FOH engineer to have a great show... I'll take trading for stress relief. LOL. Though mixing is in my blood and I wouldn't quit it for the world. Good part is you trade during the day and gig at night. (Generally)
Music biz can make you rich quick and make you broke even faster. Hmmm sounds a lot like trading. LOL.