How much trading profit is enough to live on?
- Thread starter jinxu
- Start date
But that would mean he should be right 9 out of 10 times... and if he's wrong, not too wrong... because there's no backstop and hard to come back. With 100k you will always have time to recover.
Like I said that equates to an annual Sharpe Ratio of just under 4. Please tell me the names of the hedge funds making that sort of money, consistently, outside of high frequency trading firms (which the OP clearly isn't doing).
GAT
100K++++ to make $1500 per month, is just stupid you'd have to be a barely profitable trader to only make that much.
Don't believe the, you need big $$$'s hype, I've seen 2 people with 100K+ blow it within a few months, and taking a 10% hit on a 100K account is going to be way more stressful and make you revenge trade risking more to get it back that 10% of a $5000 account.
He doesn't need a huge monthly wage, he's unemployeed so anything better than £250 per month is already better than what he's getting most likely.
I will say, bank 1/2 of it though, incase of a 1 time bad account wiping trade.
That's a return of 18%. Hardly 'barely profitable'. And if you're living off that 18% you need to make that consistently, every single month. Like I said earlier I'm curious to hear of hedge funds that can make that kind of money. Bernie Madoff doesn't count.
GAT
There's a huge difference beteeen hedge funds managing hundreds of millions or billions and smaller accounts. You can't really use the same % return logic for both situations. At some point after a massive scale up in profits everybody has to apply to the 10-20% is excellelt but the institutional and retail world is completely different.
Like turv said, it's dangerous and borderline irresponsible to tell new traders they need 150k to start. They are going to blow their first account regardless of the size.
For a day trader I consider 18% barely profitable for a year.
I'm small 4K account and clearing 10-20% per week fairly consistently, haven't really traded this week only monday down 4%.
You can't compare % returns of million $+++ hedge funds against small day trading accounts.
The Entire system of Banks profiting as they all profit pretty much yearly, it needs to come from Retail, big accounts being wiped or small accounts millions of them adding $200 per month which add up.
They want the 150K's, hence the brain washing to take there money.
I went back through your past postings regarding your job.
This is just the OPINION on the internet of just someone. So take it with a pinch of salt,
take what you find may be useful and leave the rest.
You have 4600$. May be time to take your cash out and look for a broker that will
give you a significant "welcome bonus". I don't know what you trade, but shopping around
you should come across at least 3 times "welcome" bonus, up to 10 times.
That will give you a tiny account of 12 000$ minimum, and around 46 000$ if you shop well.
If you go this route, you have to start thinking that you have just one shot.
That means, being extremely careful during your trading. So decrease your risk to 0.5% per trade.
Regarding living expenses : now, is the time to swallow your pride, and ask for help from
your family and very good friends. Just tell them clearly: you lost all your money, you got fired
and you need a safe place for up to one year to get back on your feets. This will cut your expenses
to minimum. Make sure you keep a full record of what help you are receiving, as, from a "spirituality"
point of view it will be better that down the line you return amply what you have been given
when in problems.
Someone suggested that you work on your depression:
this, in my views, should be your first priority. Try any method you think can help - being careful not to fall into "sects" or "cults" that pray on weak minded people.
Ask for some help, take care of your health, trade with tiny risks/trade (0.5%) , stay focussed.
If you know how to trade, in one year time you'll be in a better place. Actually, one could consider
taking any trading profits, and then using this cash to give a go at TST : 300$ for a possible
150k account is not neglectable, if you can trade, but have had some problems.
I repeat : these are just one person's opinion.