Average daily profit with $50K account?

[Bolimomo]

Quote from PiggyBank:


You are also assuming that everything remains static throughout the year. If u are averaging 500 a day, u will have doubled your acct after 100 days, so if you double your size, then u should be avg 1000/day. Obviously it is not this linear IRL, but this is how it works, do u understand?

Remember some said "compounding makes me mad".

 

[deaddog]

Quote from RedRat:

Ok the answer is YES but you as well as 95% here will NOT reach it.
I trade 6 contracts intraday and my target is around $1000/day with lower then 50k account. But the reality is cruel. The realtime statistics of my system does not match historical and expected performance.

For my combination of systems starting with 50k account I would target for 200k per year, trading 10 contracts (without compounding). But the DD would be something around $30k or may be even $40k.

Do you have balls to trade 10 contracts while you have 80% DD? The DD may occure in the very first month.

So the answer is Yes but you gotta have the balls.

How about NoDoji and Thinkfirst?

 

[bigarrow]

Quote from PiggyBank:

I haven't day traded in like 3 months, what does that have to do with the topic? Or do u just want to measure e-peens? Do u think that your screenshot somehow makes your misinformed opinion worth more than mine?

Also what stupidity asshole... if you refuse to believe what I KNOW, like I said that is your problem. Bottom line, you lost the arguement. I don't know where in my posts u find anything that is unbelievable/debateable.

Just curious since say you're a good trader why aren't you trading? Are you working some where else?

 

[PiggyBank]

Quote from bigarrow:

Just curious since say you're a good trader why aren't you trading? Are you working some where else?

I am pretty sure that I never said I was a GOOD trader. I know and have been mentored by a few good traders, and I did say I made money my first year, and I was doing pretty well (relative to my acct) in '09, but it all went to shit. It got to the point were I didn't have enough in my account to be able to make enough to live on without taking excessive risk, so I stopped. I just hope these conditions don't last for years. This is not to say that I think I will definently be profitable over time, or that I've "made it", but I am convinced it is possible.

 

[PiggyBank]

Quote from Bolimomo:

Remember some said "compounding makes me mad".

I don't recall anyone saying compounding makes them mad, but ok. Anyway growing your account is part of the business, the more u make the better your ability to survive bad times. At some point though you will likely run into liquidity issues. Also consider that if u trade for a living then you take money out to live on, pay taxes, comissions, sec fees etc. I only made like 40 something % of my gross my first year, of course I don't have the best rates and I am sure some guys are much more efficient.

 

[icarus618]

Quote from 1a2b3cppp:

Why on earth would it move that way? As you learn, shouldn't you go from lower right (high risk, low profit) to upper left (low risk, high profit)???

I think you misunderstood the graph and excerpt.

The graph represents various market operating points. If you use set-ups, edges, etc., sub in those terms. The excerpt states that upper left to lower right is the path to follow for a person learning to trade futures intraday; i.e., it is a CHOICE to follow a path that begins with high profit/low risk trades only and then moving on to other trades as your skills increase.

The point of the post was to state that in trading (in contrast to investing) the profit/risk profile is all over the place. Some have followed up here confirming that point. I'm not interested in debating or changing anyone's mind. I'm just putting what I know out there.

That being said, your post does raise the interesting question of where the actual source of trading risk lies. Is it in the market? (Risk is not uniform across various market operating points regardless of trader skill level.) Is it in the trader? (Risk is inversely related to trader skill level; i.e., if a trader is good enough, any operating point can be low risk.) Or is it a combination of both? I'll leave that for you to consider.

Another question is, is it possible or likely for someone learning to trade on his or her own to be able to recognize if a trade is high, average, or low risk? That's another can of worms.

 

[NoDoji]

Quote from deaddog:

So the answer is Yes but you gotta have the balls.

How about NoDoji and Thinkfirst?

Just checked, no balls yet. But I attached my trades today to show how patience and trading good setups can produce a solid result without using major leverage.

 

[palinuro]

Quote from icarus618:


Another question is, is it possible or likely for someone learning to trade on his or her own to be able to recognize if a trade is high, average, or low risk? That's another can of worms.

Possible, but likely to be a painful process. Witness the frustration periodically evident in many 'educational' threads. But are there many skills that people can readily pick up without any direct training?

 

[icarus618]

Quote from palinuro:

Possible, but likely to be a painful process. Witness the frustration periodically evident in many 'educational' threads. But are there many skills that people can readily pick up without any direct training?

I read that as a rhetorical question.

Good meeting you in Vegas.

 

[1a2b3cppp]

Quote from RedRat:

Would you invest into the hedge fund which shows last year performance 20%?

Yes. Because that's an INVESTMENT (eg. I am essentially buying and holding by giving them my money) so percentage is relevant.

Percentages are relevent for hedge funds, mutual funds, long term stock trades, etc.

Not for traders.

Saying that percentage matters for traders implies that you HAVE to scale up as your account grows, otherwise you start doing "worse."

Remember the example where you and I make the same trades all year, but your account is $1M and mine is $10k. We did the same. Unless you traded 100 times bigger than me with each position, then we got the same PERCENTAGE.