We definitely need you guys to trading on !!!
How Realistic? $50k account, $500 / day
- Thread starter AFChao
- Start date
you mean making 1% per day and 250% per year by trading stocks?
Checkout the comments, compounded it's even more than 250% annually. LOL
In Ocho Cinco's example it's less than 25% on leveraged capital for 5 futures contracts...not a big deal for an experienced and disciplined trader. Stocks don't offer enough leverage for that, possible but real tough.
Sorry, I posted some Option Trades with gains exceeding ($500) instead of Futures, I have no idea how to trade Futures, just stocks and equity options! Those stock and option trades have no relevance to your question, good luck!
Yeah this can be handled easier with futures daytrading but cannot see being consistent enough to do this with options or stocks.
To be fair though, 1% a day starting out on $50,000 is $500 a day which is 1-2 handles on ES as an example. If you do this well and the account gets up to $75,000 then it is $750 a day and if you have a consistent system then you simply adjust contract size.
If you shoot for 1% a day and only trade 180 days a year (no signal days, vacation, life shit..) then $50,000 can turn into close to $300,000 compounded assuming you average 1% a day (more on some days, losses on others). Sounds unbelievable because most of the time you get in your own way to such a path.
The hurdle here is not making 1% a day, it is human error of sticking to your system, knowing how to ramp it up effectively and sticking within stop loss limits. This gets harder as the account gets bigger.
ES is a good thing to trade because it is liquid enough to allow you to ramp up as account hopefully grows. But like I said, the key is can you do this day in and day out for 180 days of the year with discipline and deal with days with no signals and sit on your hands or days where you get a hit of 3% and have to grind it back over time. that is really the key....