How much buying power ?
- Thread starter inomad
- Start date
Quote from NY0BScalper:
Having a shitload of enveloping bids .50 away from the inside market getting filled seconds before a stock gets halted on terrible news is worse than missing a trade any day
Alright, well maybe just a couple thousand things worse than lack of BP.
But been there and done that too unforunatley
My size is based on the question "how much do I plan to lose on this trade if I'm wrong?". If my out is 10 cents away and I'm willing to risk 300, then my position will be 3000 shares. Regardless of BP.
But for my trading style, I probably rarely use more than 20% of my BP at any given moment throughout the day so BP is something I never really think about. I guess that's one of the benefits of trading prop.
But I do think you'll need at least 100K to consistently make 500 a day.
1) None of this matters unless you are net profitable for a lengthy period of time.
Under capitalization is definitely a problem. But the main problem of most traders is that they have almost no edge.
2) Even with $100,000, many traders will still manage to have an occasional blowout when they get greedy.
There is a serious difference between MAKING $500 a day and AVERAGING $500 a day.
3) More important for a particular trader - what have YOU averaged over the last 6 months on a daily basis, on your current account. Then try scaling that up to a $500 daily level.
Trying to ask other traders is difficult, because some are scalpers, ir swing traders, or try and get the occasional home run while others try and take out small profits. A scalper can get along on a much smaller stake.
4) Many traders tend to get conservative with larger accounts, so this must also be factored.