As the thread seems to be a bit serious now, I will not insult your intelligence, but when the time wasters return, the mirror will be taken out again
The only thing that matters is making money. How you make that money is up to YOU, and once YOU are making it then what ever you are doing is fine.
When I speak, I am, of course, speaking from my viewpoint based on my experiences. I have found, after making and losing a good amount of money, that, there are some approaches that are far less risky than others, and, if done CORRECTLY, can yield very good returns.
E.G.
With $50K daytrading account (and I will go with standard US brokers as some here have no access to CFD accounts, of which I have 5) you have $200K buying power.
If the average price of a US stock is $50, then our max trade size, allowing some reserve, is approx, $180K / 50 = 3600 shares
If we target the magic number 50 cent range, then, for a winning trade we can make 3600 x .50 = $1,800
If we make one winning trade per day we make $1.8K x 5 = $9k per week.
If we allow for some losers, say 50/50, then we make $4.5K per week.
Now, $4.5K per week is GOOD money for most people, and that is for only 1 trade per day
The average number of trading days per year for US Stocks is 250, so, if we target $1K per day for profit, we make $250K per year.
Now, lets look at what is really possible, if we are really smart and have more money that $50K
5 trades per day
Avg size per trade is 2000 shares
3 winners @ average 80 cent
2 losers @ average 20 cent
Annual returns excl commissions.
+ 250 x 3 x 2000 x .80 = 1,200,000
- 250 x 2 x 2000 x .20 = 200,000
Net = $1,000,000
Forget about commissions
- Comms of 250 x 5 x 2000 x .0075 = $18,750 (which can be reduced if you want to shop around!)
So, can you be a millionaire is a Year?
Well, we all know the answer, but, how many will actually do what is required in order to allow it happen?
MK, please check the sums, as you are a straight A student
TE
The only thing that matters is making money. How you make that money is up to YOU, and once YOU are making it then what ever you are doing is fine.
When I speak, I am, of course, speaking from my viewpoint based on my experiences. I have found, after making and losing a good amount of money, that, there are some approaches that are far less risky than others, and, if done CORRECTLY, can yield very good returns.
E.G.
With $50K daytrading account (and I will go with standard US brokers as some here have no access to CFD accounts, of which I have 5) you have $200K buying power.
If the average price of a US stock is $50, then our max trade size, allowing some reserve, is approx, $180K / 50 = 3600 shares
If we target the magic number 50 cent range
, then, for a winning trade we can make 3600 x .50 = $1,800If we make one winning trade per day we make $1.8K x 5 = $9k per week.
If we allow for some losers, say 50/50, then we make $4.5K per week.
Now, $4.5K per week is GOOD money for most people, and that is for only 1 trade per day
The average number of trading days per year for US Stocks is 250, so, if we target $1K per day for profit, we make $250K per year.
Now, lets look at what is really possible, if we are really smart and have more money that $50K
5 trades per day
Avg size per trade is 2000 shares
3 winners @ average 80 cent
2 losers @ average 20 cent
Annual returns excl commissions.
+ 250 x 3 x 2000 x .80 = 1,200,000
- 250 x 2 x 2000 x .20 = 200,000
Net = $1,000,000
Forget about commissions
- Comms of 250 x 5 x 2000 x .0075 = $18,750 (which can be reduced if you want to shop around!)
So, can you be a millionaire is a Year?
Well, we all know the answer, but, how many will actually do what is required in order to allow it happen?
MK, please check the sums, as you are a straight A student
TE
