By day trading, is it really impossible to get a 3% return every day without fail?

[d08]

Xelia, do you have any response to these criticisms of Brooks? There's one video I saw years ago of Brooks disrespecting CNBC pundits, saying if they were real traders they wouldn't be on TV talking about the markets but would make, I think he said 500% in a year day trading...he's implying he can do 500% yearly returns...no one can do that vs HFT/algorithms, which Brooks ignores..this guy shouldn't be defended without evidence.

One off 500% returns are possible, didn't neke do this years ago? Doing it year after year is close to impossible but not completely.
Do you realize that HFT competes in the millisecond to second timeframe, they don't hold for hours, therefore you are not directly competing with them, you only pay a HFT "tax" every time you enter/exit a position since they gamed you (presumably).

 

[lawrence-lugar]

One off 500% returns are possible, didn't neke do this years ago? Doing it year after year is close to impossible but not completely.

I agree d08,
500% returns are possible. (not scalping with stock though.) theoretically, if you go all in with options...and say average...like 10% per trade (which is very modest)...compounded...you'll hit that benchmark in no time. i know probably like 97% of people though reading this are probably rolling their eyes. but it's not such purely a gamble, if you know what you're doing more or less.

 

[Xela]

Xelia, do you have any response to these criticisms of Brooks?

No: I originally posted only in response to two assertions you'd made, in one case to point out that it was factually incorrect and in the other to mention that it was interpretative and an equally easy aspersion to cast against anyone who's written a few books. I have no interest in discussing it further; thanks. And a Happy Christmas to all.

 

[d08]

I agree d08,
500% returns are possible. (not scalping with stock though.) theoretically, if you go all in with options...and say average...like 10% per trade (which is very modest)...compounded...you'll hit that benchmark in no time. i know probably like 97% of people though reading this are probably rolling their eyes. but it's not such purely a gamble, if you know what you're doing more or less.

You can do 500% on a great year with stocks or ETFs, no need to do options. With options, close to anything is possible but with incredible risk.

 

[i am nobody]

I agree d08,
500% returns are possible. (not scalping with stock though.) theoretically, if you go all in with options...and say average...like 10% per trade (which is very modest)...compounded...you'll hit that benchmark in no time. i know probably like 97% of people though reading this are probably rolling their eyes. but it's not such purely a gamble, if you know what you're doing more or less.

The only problem is that for these 97% these return are impossible to make so they don't believe it can be done. It only confirms that real traders are very rare on ET. The biggest part of these 97% will never make any money in trading. They will spent their whole life (or lose their time) on ET denying that profitable trading exists. If I read that some "experienced traders" write that HFT's and algorithms prevent traders from making money it needs no further explanation. At least not for those who really know what trading is, as they know how stupid that statement is.

I trade the ES. If I start with a $5,000 account, a margin of $2,500 per contract, calculated a slippage of 1 tick on every entry and every exit, pay $3.5 commission a RT and trade compounding with a limit of 100 contracts, I need to make 1.25 points a day (240 trading days a year) to grow my $5,000 to NET $99,452, so profit is $94,452. That's not 500%, that's 1,899.04% a year. Just make a lousy 1.25 points a day. Just do the math and you will see. But 99% of these 97% probably never calculated what the potential is. And knowing what you can make, or lose, is the most important and essential thing before you can decide to trade.
If you make 1 point a day you will reach your 500%.

I know that bashers will laugh and say I should be THE RICHEST MAN IN THE WORLD. Well I let them laugh, because their statement is FALSE as I clearly said maximum 100 contracts. They think about eternal compounding, which is again proof of their stupidty and lack of knowledge. Eternal compounding is impossible.
Let's see how many seconds it takes before bashers react.

 

[Q3D]

Brooks possibly implied he made 500%, that's what's in question here. I see no evidence of any edge in his material to produce 5%, certainly not 500%, returns on equity after commissions and a year of day trading.

 

[Trader22]

The only problem is that for these 97% these return are impossible to make so they don't believe it can be done. It only confirms that real traders are very rare on ET. The biggest part of these 97% will never make any money in trading. They will spent their whole life (or lose their time) on ET denying that profitable trading exists. If I read that some "experienced traders" write that HFT's and algorithms prevent traders from making money it needs no further explanation. At least not for those who really know what trading is, as they know how stupid that statement is.

I trade the ES. If I start with a $5,000 account, a margin of $2,500 per contract, calculated a slippage of 1 tick on every entry and every exit, pay $3.5 commission a RT and trade compounding with a limit of 100 contracts, I need to make 1.25 points a day (240 trading days a year) to grow my $5,000 to NET $99,452, so profit is $94,452. That's not 500%, that's 1,899.04% a year. Just make a lousy 1.25 points a day. Just do the math and you will see. But 99% of these 97% probably never calculated what the potential is. And knowing what you can make, or lose, is the most important and essential thing before you can decide to trade.
If you make 1 point a day you will reach your 500%.

I know that bashers will laugh and say I should be THE RICHEST MAN IN THE WORLD. Well I let them laugh, because their statement is FALSE as I clearly said maximum 100 contracts. They think about eternal compounding, which is again proof of their stupidty and lack of knowledge. Eternal compounding is impossible.
Let's see how many seconds it takes before bashers react.

Thanks for the great post, you nailed it. I almost cringe when everyone says 3% a day is not possible. ES is a freakin' gold mine. I come here for entertainment purposes but that's the best post I've seen on this site.

 

[i am nobody]

Brooks possibly implied he made 500%, that's what's in question here. I see no evidence of any edge in his material to produce 5%, certainly not 500%, returns on equity after commissions and a year of day trading.

I marked the two most important words of your posting in red. That's the reason why you have problems.

You don't see, so nobody sees...

 

[wrbtrader]

Thanks for the great post, you nailed it. I almost cringe when everyone says 3% a day is not possible. ES is a freakin' gold mine. I come here for entertainment purposes but that's the best post I've seen on this site.

If you change what the OP stated...anything is possible but not via the way the OP has stated.

The catcher was his "100 times in a roll for each possible business day" and the other issue was the "$100 and got a 3% return everyday".

I've never met anyone that traded 100 times in a roll (consecutive) for each (every) possible business day (trading day) without a losing trading day while profiting 3% each of those trading days. Also, not exactly sure via his statement in the thread title "...never fail". Does he mean "no losing trades" or does he just meant always get 3% or more every time.

If he means exactly what he stated...not possible.

I have met guys averaging big numbers per day but not 100 times in a roll every trading day.

For example, a few years back I watch someone in Chicago average about 4k per day in Emini ES futures for 40 consecutive trading days (about 2 months) before he had a losing trading day of 10k. He's a day trader (not a scalper) that does on average about 8 trades per day (averaging about 3 losers per day), while trading from 8am - 11am most trading days. Also, he doesn't trade all year around...no trading during the summer months and vacations the entire month of December for the holidays.

That's something I saw occur with my own two eyes...not an internet tall tale and he's still profitable and trading a few more contracts than the last time I saw him.

Yet, he doesn't qualify as a profitable trader by certain individuals at this forum that have their own definition of a "profitable trader" because their definition doesn't correlate with reality of trader's today. For example, he pays his own private medical/health insurance (very expensive) for his family especially considering he has teenager that has a disability.

Simply, he ain't no millionaire, he drives a 40k SUV and lives in an "inherited" home from his grandparents death.

Like I said, change the Op statement...big consistent profits are possible and it doesn't imply all profitable traders are rich. These types of traders just are not on any ridiculous definition radar of a profitable trader and they do have losing trading days.

In contrast, pretend someone has no family to support, lives off of someone as in they pay no bills or has saved several years worth of income prior to any consistent profits...

You should easily compound your way to riches. Unfortunately, I haven't met anyone like that. Yet, I have met a lot of traders that have no financial obligations to anyone and profitable but spends most of the profits to party and have a good time.

One particular trader here at ET said he spends all of his profits on video games, girls and race track betting. Simply, I think compounding isn't easy for most folks.

P.S. Emini ES futures is not a trading instrument for a newbie trader.

 

[ktm]

OP never even came back. Is he reading all of this?