daytrading profits --- how many cents per trade is realistic
- Thread starter kotika
- Start date
This is pretty arbitrary dont you think? How can you possible adapt to changing market conditions with such rigid trading criteria?
Not flaming, just asking...
Not flaming, just asking...
Daytrading: I don't set targets for each day. I take what the day offers (eg YM).
First, put aside 'trading for a living' which is a distraction preventing straight money accumulation. If you are simply using the market to build a capital pile, you add to & multiply your gains in making a continuously increasing accumulation.
You can set up a very simple measurement to gauge your progress at x per day, which becomes 5x per week & 5x=y where a week=y. At the end of 4y, you can double your stake. And so on such that you can double your stake every 4y if for example x is a $30 gain on every $1000 stake. I have assumed both accurate trading and an average minimum gain. This is theoretical but can match reality .. you also have to contend with playing increasing position size of course. This brings in position size modeling.
However make the measurements and projections slower or according to your own calculations to meet the targets you have in mind.
First, put aside 'trading for a living' which is a distraction preventing straight money accumulation. If you are simply using the market to build a capital pile, you add to & multiply your gains in making a continuously increasing accumulation.
You can set up a very simple measurement to gauge your progress at x per day, which becomes 5x per week & 5x=y where a week=y. At the end of 4y, you can double your stake. And so on such that you can double your stake every 4y if for example x is a $30 gain on every $1000 stake. I have assumed both accurate trading and an average minimum gain. This is theoretical but can match reality .. you also have to contend with playing increasing position size of course. This brings in position size modeling.
However make the measurements and projections slower or according to your own calculations to meet the targets you have in mind.
More than 5 cents.
I feel pretty crappy when a stock moves 2-3% intraday and I can only grab 0.25%. Do any scalpers out there know what I'm talking about?
You guys must be trading the Q's and MSFT to be looking for 1-2 cent gains, that wouldn't work for me considering sometimes the spread can be 3 cents wide on what I trade. I know some traders on here move a lot of shares, so 2 cents can be pretty good in there case, but for someone only trading 10k s/day, that doesn't seem like much.
Maybe I miss understood the question. I was thinking 5 cents meant, you buy X amount of shares at 50.00 and sell at 50.05, which would = 5 cents per share per trade. Am I right?
I feel pretty crappy when a stock moves 2-3% intraday and I can only grab 0.25%. Do any scalpers out there know what I'm talking about?
You guys must be trading the Q's and MSFT to be looking for 1-2 cent gains, that wouldn't work for me considering sometimes the spread can be 3 cents wide on what I trade. I know some traders on here move a lot of shares, so 2 cents can be pretty good in there case, but for someone only trading 10k s/day, that doesn't seem like much.
Maybe I miss understood the question. I was thinking 5 cents meant, you buy X amount of shares at 50.00 and sell at 50.05, which would = 5 cents per share per trade. Am I right?
It means you have about $500 more than you did at the outset. That was your goal and you achieved it. That's what really matters. Next is to become consistent at doing this. Don't get looped into an over analysis mode.