Advice on how to make 5%/month on $1 million
- Thread starter blaze1635
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Like I said, there are people who mistake luck for skill and those who just make shit up. There's no need to even ask to show trading returns, it's pretty basic math to see how many billion dollars in short order anyone would have if they made 5% a week. There are a couple of billionaire traders in the world but it's a pretty high probability they're not here. And even they didn't get there by making 5% a week. Of course you could be better than literally every single professional whose returns are subject to third party verification has been over the past 100 years, but it's fairly unlikely. Of course that's just me being skeptical
Even at that, you will still lose when the 0 or 00 comes out.
Thanks for your thoughts. But not sure what you are saying, exactly.
If you never risk more than 2% per trade, then why can’t I do the same thing? Let’s say I trade $200k, and only put 2% at risk. That’s $4k per trade. How am I blowing up my whole account?
To average 5% per month, you can do it several ways:
1)Risking 0.25% of your account per trade you would need to average 20R per month
2)Risking 0.5% of your account per trade you need to average 10R per month.
3)Risking 1% of your account per trade you need to average 5R per month.
4)Risking 2% of your account per trade you would need to average 2.5R per month.
Option 4 is the easiest. But will also give you the biggest drawdowns.
On a $1 million usd account:
0.25% risk would be $2500
2% risk would be $20,000
You would probably have to trade high volume/liquid markets/stocks if you were risking $20,000 per trade.
Risking just $2500 per trade you could trade most instruments.
1)Risking 0.25% of your account per trade you would need to average 20R per month
2)Risking 0.5% of your account per trade you need to average 10R per month.
3)Risking 1% of your account per trade you need to average 5R per month.
4)Risking 2% of your account per trade you would need to average 2.5R per month.
Option 4 is the easiest. But will also give you the biggest drawdowns.
On a $1 million usd account:
0.25% risk would be $2500
2% risk would be $20,000
You would probably have to trade high volume/liquid markets/stocks if you were risking $20,000 per trade.
Risking just $2500 per trade you could trade most instruments.
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The reason is you are chasing the huge returns so, would have to trade in a large enough size to get those huge returns. If you were going after reasonable returns of 12-18% per year then, it is more reasonable and can be done. You want returns in the 60% per annum or higher, which is a pipe dream and nothing else.
Hedge funds with the best traders running them, make 18-20% on average and happy with it and they trade hundreds of millions or even billions. They have losing years too, where they lost monies. However, most years they make enough to cover the losing years.
Like I said, there are people who mistake luck for skill and those who just make shit up. There's no need to even ask to show trading returns, it's pretty basic math to see how many billion dollars in short order anyone would have if they made 5% a week. There are a couple of billionaire traders in the world but it's a pretty high probability they're not here. And even they didn't get there by making 5% a week. Of course you could be better than literally every single professional whose returns are subject to third party verification has been over the past 100 years, but it's fairly unlikely. Of course that's just me being skeptical
You don't know the workings of a monthly fixed size trading account.
There is no account growth, business expense plus payroll is withdrawn as is any excess above fixed size. If necessary, replenished to the fixed size monthly.
And you're correct... no interest in "proving" anything to an anonymous typist on an anonymous forum on the Wild-West-Web. In fact, no interest in any situation outside of some sort of business dealings/reasons.
I am not in competition with any home-gamer or "professional". I have zero interest in governmental oversight, or customers, or even being recognized: Tiddlywinks who is fine with me and mine.
No, one can not read a "dummies" book and before lunch become a consistently profitable trader. You have to watch youtube vids for that.
It's just sad that so many people don't even consider possibilities.
You are trapped in what you believe to be true...
You don't need a vision when you have a tradition. --- T.D. Jakes
Right, so you could be a billionaire but you pull your 5% out every month to make sure that doesn't happen. Got it.
When you claim to be a better trader than literally every person with verified results who has ever lived, then the people calling bullshit aren't "trapped in what they believe to be true". They're what the rest of the world calls rational people.
It's amazing how this type pops up like clockwork, just a few posts after I accurately predicted you would. Thanks for making me look prescient!
Curious how many in this thread are going call bullshit.
Pretty good year and reflections for this trader
https://simplerjohn.medium.com/2020-a-recap-of-my-1270-18-2-million-trading-year-faa24a08c65d
Pretty good year and reflections for this trader
https://simplerjohn.medium.com/2020-a-recap-of-my-1270-18-2-million-trading-year-faa24a08c65d
Not BS, IMO. The guy just went for it at the right time with the right stock. This is what makes trading worth it - you can grind for years and then catch the life changer. But you must position yourself for that. I suspect 2020 was that kind of year for many.