FACT: You can be a profitable trader with just about any account size.
- Thread starter FRuiTY PeBBLe
- Start date
For a trader just starting out, it won't really matter how much you have, you will most likely blow out at least once. Conversely, a talented trader can take practically any amount and compound it enormously. How much you have to begin with in your account doesn't really mean much at all in terms of where you end up.
On a side note, re: nitro, I would think that 75 - 100k could net a decent intraday trader a fairly good living, especially given emini margins -- not much difference in trading 1 contract vs 50 contracts in es, is there?
On a side note, re: nitro, I would think that 75 - 100k could net a decent intraday trader a fairly good living, especially given emini margins -- not much difference in trading 1 contract vs 50 contracts in es, is there?
Almost anything "can be done".
I find this claim extremely impressive, and I would not in anyway try and dispute it or even state strongly that it is "extremely unlikely" much less "impossible".
But I will say with great conviction that this kind of streak, and the kind of ROI here can only be achieved in very special market conditions.
So while having the "eye of the Tiger" is certainly an understandable concept to me.....we have all been "in the zone" on occasion, it is virtually impossible to stay there for such a long time without some cooperation from the market.
Don't know what my longest winning streak was (consecutive days), but I do remember thinking of myself as "invincible". But reality always comes around eventually.
The point is, being "underfunded" can work fine, if you are fortunate enough to start at the right time. And conversely, being "underfunded" and starting at the wrong time can be, as someone said here, a virtual death sentence. And that would apply to to anyone, no matter how competent and experienced and disciplined they are.
Now that addresses my thoughts on a lengthy winning streak.
As far as making a better than 50% ROI in one month, that would certainly depend on what kind of trading one does. If you are trading options, for example, that would make a huge % return very possible.
Holding overnight equity positions and catch a few (or in some cases only one) big gap that goes your way...for examples: a takeover on the long side, or a disclosure of "accounting irregularities" or the failure of an FDA approval on a drug, on the short side, news events, etc., makes these kinds of returns possible. But no one can deny that these require a huge degree of luck. Or inside information.
But for a straight forward daytrader (scalper), who comes in and goes home flat every day, I would think that kind of a return in a month is approaching "miraculous". Not quite impossible, but close. Trading futures (or any way of increasing leverage) makes big ROI possible. But again, luck plays a big part. And downside risk is also a major factor. In which case, this works against you on the capitalization factor.
So overall.....anything is possible. But without luck and without a super trending market, there is no real way to justify trying to encourage a trader to enter the market and expect to earn a living without a significant amount of money. So while I can understand the resentment of many to the PDT rules, in reality, anyone who is expecting to trade full time, and also expects to earn enough to live on, would be foolish to attempt to trade with less than the required $25k. (to me, this is a far to low amount anyway).
Keep in mind, a nice steady 50% annual return on this kind of money is going to keep you broke.
So yeah, I don't think people who want to start trading with $2k or $5k, or whatever should be discouraged, but they should not be coming in thinking they can make a full time career of trading with that kind of dough. It's fine to do it part time, and let it build, and hopefully they will be able to let the profits compound and become enough to be sufficiently funded to make it a career.
But to start that way? Better have a night job. Or another source of income. Or no expenses (live with your parents, or something like that).
I would be interested to hear any arguments about what I have said here....but I know I can't be convinced to change my outlook on this issue. There are not that many things I know with absolute certainty. But this is one of the rare issues I do.
Peace, my Brethren,
Rs7No arguments from me, Rs7. Over 50% ROI in one month is very impressive. I had naturally assumed he was trading with a British Account because that type of return from UK CFD trading, a british derivitive that only require 5% initial margin, is reasonable.
Getting that type of return from Nasdaq is truly amazing feat of talent.
Getting that type of return from Nasdaq is truly amazing feat of talent.
Quote from rs7:
Almost anything "can be done".
I find this claim extremely impressive, and I would not in anyway try and dispute it or even state strongly that it is "extremely unlikely" much less "impossible".
But I will say with great conviction that this kind of streak, and the kind of ROI here can only be achieved in very special market conditions.
As far as making a better than 50% ROI in one month, that would certainly depend on what kind of trading one does. If you are trading options, for example, that would make a huge % return very possible.
Holding overnight equity positions and catch a few (or in some cases only one) big gap that goes your way...for examples: a takeover on the long side, or a disclosure of "accounting irregularities" or the failure of an FDA approval on a drug, on the short side, news events, etc., makes these kinds of returns possible. But no one can deny that these require a huge degree of luck. Or inside information.
But for a straight forward daytrader (scalper), who comes in and goes home flat every day, I would think that kind of a return in a month is approaching "miraculous". Not quite impossible, but close. Trading futures (or any way of increasing leverage) makes big ROI possible. But again, luck plays a big part. And downside risk is also a major factor. In which case, this works against you on the capitalization factor.
Keep in mind, a nice steady 50% annual return on this kind of money is going to keep you broke.
I would be interested to hear any arguments about what I have said here....but I know I can't be convinced to change my outlook on this issue. There are not that many things I know with absolute certainty. But this is one of the rare issues I do.
Peace, my Brethren,
Quote from WinSum:
No arguments from me, Rs7. Over 50% in one month is very impressive. I had naturally assumed he was trading with a British Account because that type of return from UK CFD trading, a british derivitive that only require 5% initial margin, is reasonable.
Getting that type of return from Nasdaq is truly amazing feat of talent.
Thank you! Even though that is not alot of coin(27k). I work very hard.Research, discipline, and watching all the patterns of the market.One i love the most(pattern) is up,up Gap up(on the market) sell into it and also down,down Gap down buy into...