Expectations..
- Thread starter Leob
- Start date
Your math relays on accumulation of the money and 2 percent every day on total sum.
This is not the case.
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Correct - 2% every day with monthly compounding. The majority of traders & investors take advantage of compounding to make far larger gains.
If your trying to make large gains without compounding you going to have to make way more than the traders that use compounding over time.
Here is an example of compounding vs non compounding:
° 5% per month = 60%pa or 79.6% pa compounded
° 10% per month = 120%pa or 214% pa compounded
° 15% per month = 180%pa or 435% pa compounded
° 20% per month = 240% pa or 792% pa compounded
° 22.2% per month = 266% pa or 1,000% pa compounded
If your trying to make large gains without compounding you going to have to make way more than the traders that use compounding over time.
Here is an example of compounding vs non compounding:
° 5% per month = 60%pa or 79.6% pa compounded
° 10% per month = 120%pa or 214% pa compounded
° 15% per month = 180%pa or 435% pa compounded
° 20% per month = 240% pa or 792% pa compounded
° 22.2% per month = 266% pa or 1,000% pa compounded
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I did it. First started with ES, till my size was so big that I controlled the market. Then added trading stocks. Till I made over 1 trillion and had to add forex too.
ROFLMAO.
Your example is not realistic at all.
What @comagnum posted is not realistic.
You can even make 100% a day and never be rich. All depends of the size you can and want to trade.
The OP was asking about making $1k a day on a $50k acct which is 2%. I took the liberty in showing how much you could make if you made 2% per day with compounding over 5 years.
When your acct gets larger your profits should also increase. For example making $1k in a day on a $1M account is lame - its only a 0.1% gain. This is why I kept the % static at 2% doing the calculations.
At 2% per day over a span of 5 years a $50k acct soars to $29 trillion, at $1k per day without compounding it grows to about $1.29M.
Even a $100 acct at 100% gain per day with compounding in a year grows to $735 Quintillion !!
When your acct gets larger your profits should also increase. For example making $1k in a day on a $1M account is lame - its only a 0.1% gain. This is why I kept the % static at 2% doing the calculations.
At 2% per day over a span of 5 years a $50k acct soars to $29 trillion, at $1k per day without compounding it grows to about $1.29M.
Even a $100 acct at 100% gain per day with compounding in a year grows to $735 Quintillion !!
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I know how much impact compounding has and I build models to see how to use it optimal and to see the behavior of my account. I use it already many years. But the billions and trillions are unrealistic.
And even the calculations are not correct. OP was speaking about the ES. You can only increase size if you made enough profit to reach the margin you need for that extra contract. So the real numbers are much smaller than what you calculated.
A 50 k account with 2% profit a day and compounding would give after 5 year, after commissions and with a margin of $2,500 per contract, an ending capital of $114,191,565,300. At that moment your size is 22,838,388 ctr ES A DAY. And the ending capital is not 29 trillion, but roughly 253 times less. About $114,191,565,300.
I even did not cancel trades on days that the markets are closed. So the numbers will even be a few billions lower.
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Yes don't be discouraged, but for a beginner, it is not a realistic expectation.
It is a long and difficult road with lots of ups and downs. And not many succeed in reaching the target they had in mind when they started long before.
The billions and trillions are not realistic even for most professionals.
%%
I did better than that;
trading contest/derivatives, risking 10%, for 30 days[But they put free money in account, so its like a loan you could never remoVe/LOL.]
Maybe make $1,000 per day/$5k@ week for 50 days. NOT likely you could do that for 1 year, you make no dividends............................................................................
Would i is risk 10% with ES?? ;
i have , Never AGAIN LOL, they pay no dividends.
But ES is Super liquid/\ i've seen Buy 1 Sell risk 10% + make big bucks\big drawdow$/LOL
EVen though it's likely you'll blow up trying to make that %; looks like you are real young guy, so may have time to start again.
BUT one way to keep from blowing up\ buy 1 SPY with your $50K , ES account; learning to trade that invest that could keep you from a total ES bloW up
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