Average daily profit with $50K account?

this, imho, is an excellent strategy. learn a few stocks extremely well, plan your moves, and cash out when you hit your numbers.

i do this with AAPL, GOOG, BIDU, RIMM, XOM, and a handful of others, i maybe watch 100 stocks on an intraday basis.

POT being one of my favourites.

brilliant.

Quote from NoDoji:

I trade futures as well now, but when I trade stocks it's only 1 or 2 stocks and only 1-4 trades a day to generate $500 or more profit. I've selected stocks that move 2 or more points a day and out of all the ones out there that meet that criteria, I pretty much settled on POT (though Friday I traded AMZN).

Because there's a decent daily range, I trade small size (200-400 shares most of the time), and so have low risk in the event there's a surprise market move or sudden news announcement on the stock.

Because I trade the same thing over and over again, I get to know how it reacts to various setups and price levels, making it much easier to wait patiently for only the best setups.

Early trades are the best, usually between 9:30am and noon.

Examples from this week of how well this strategy works:

5/21 AMZN (400 shares) -$140, -$143, +$816, +$264

5/19 POT (400 shares) +$408, +$424, +$284 (this was a day of exceptionally strong moves off the open, wish they were all this easy)
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It's a relatively easy strategy that works and doesn't take a great deal of time.

Many ways to skin a cat, I'm sure you have good ones as well.

Quote from TRYKtrading:

i don't have time to read back 3 years to know how this strategy works or doesn't work. the way i see it, is if it takes executing 50 trades to make money on 5, his rate of success is ridiculously low relative to the amount of capital he's committing to the total of all trades.

$1M+ in BP, he should be balancing that out across 5-10 positions that have a greater potential to profit than simply running off an automated program to see what hits and what doesn't.

may as well short/long aapl for 0.50 and make 5000 a day on 2000 shares at a time each direction using stops in a cascade all day.
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yes, with that i agree.
but you do have to realise DB has access to virtually unlimited capital, versus one of his rookie traders trading highly restricted on minimal deposits.
like all strategies, it has to be taken in context.


Quote from lwlee:

It's a relatively easy strategy that works and doesn't take a great deal of time.

Many ways to skin a cat, I'm sure you have good ones as well.
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Quote from fcg007:

Is $300 - $400 a reasonable goal for an account this size?
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I would say that $300 to $400 average daily profit on a $50,000 account IS reasonable... Provided that you don't lose more than $175 on your down days (2:1 reward-to-risk ratio before commissions and bid/ask slippage).

Breakdown
------------

252 trading days (assuming you are not trading FX or futures during the weekend) * 50% win = 126 days profitable, and 126 unprofitable.

126 profitable days * $350 = $44,100
126 unprofitable days * ($175) = ($22,050)

Net profit (before commissions, slippage, and taxes) = $22,050
= 44.1% ROE on your original $50,000
= $1,837.50 profit per month on average
= $22,050 / 52 weeks, or $424.04 per week
= $424.04 / 5 days, or $84.81 per day
@ 8 hours of screen time per day = $84.81 / 8 = $10.60 per hour

Some might think that is crummy, but it all depends on the person. $10.60 hourly from home is not a bad deal for a beginner. This will allow you to build up a track record and mental fortitude to be able to stay trading for a long time, and send out resumes to (legit) prop firms. They like consistancy. And if you are using at least SOME automation (i.e., trailing stops... assuming you are not a high frequency scalper) then your hourly rate would be higher while you go workout, lol, but the annual profit would obviously be the same.
 
When I started trading spot FX 4 years ago I gave myself exactly same questions that now are definitely not the ones I should have asked myself ever in first place. First learn to beat the odds before the odds beat you. As I haven't gone through all of the posts in this thread I can say that you can't and won't make 1% every day without having a solid edge. If you have been trading before and made dough then my apologies, if not then in reality you have no chance to beat the market. It just doesn't work this way. Trust me on this. I'm here to share my experience and help those who want to listen:)

My first post in 3 years so a big "Hello" to everyone!
 
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