Quote from jasrlew:
It seems like there are alot of traders out there trying to start small and grow it to a sizable account.
Alot of experienced traders seem to say that a $40,000 account to begin with might be a good idea which is fine but if you don't have it, well ya' gotta start somewhere.
My question is this: Experienced Traders: If your trading account was wiped out and all you had was $2,000, could you make money on it? Any particular strategies?
Just curious.
I read your post and tried to figure out where you are.
I know you do not trade. Maybe you have some money and I bet you have a job.
Personally, as I see it, everyone starts in the same place.
Ground zero.
I went back there to take a look. 1957.
I was given sound advice. It was to read Magee.
I put 300 dollars in a Merrill, Lynch, Pierce, Fenner and Bean account. I added 50% of my salary weekly for a while. (75 dollars weekly for the first few months until my first raise)
I made 10% per turn on stocks. I turn kept getting the turn to be shorter starting at less than a month at the beginning. I stopped shortening at about 8 business days.
7 out of 8 trades worked; when a trade wasn't, I saved time and left early. I did not buy stocks that were not going up when I bought them.
Because of the times I had to buy the WSJ and plot by hand in pencil. I used the P, V relation to do stuff. (I am an engineer type). I had to spend 30 minutes a day to do what I did besides rereading. This did not cut into my daily job.
I doubled every 8 trades (one flat exit and a little over 10% on the other 7).
1960 190 SL in copenhagen
quit IBM 1962
1962 sloop for four (25,000); used stock for 100% collateral on loan.
1964 Paid off loan and had 25,000 in stock left over.
Did consulting in NYC $100/hr portal to portal out of Greenwich Conn. Institutional investment white papers in: paper, textiles, pharm, and machine tools. I traded only industries that sold to industries because of high sector betas. I retained amateur status as investor.
Today it is easier. Before minis I used to have people do 1 DJ industrial contract (DJXX) They spent 30 min per day to do one turn and then quit. Profit was 300 dollars a day (10pts). Without compounding the annual ROI on that is 250 times larger.
You go to more than 1 contract and top out at 5 after a while (two months). Typical people doing it were carpenters and topless dancers; engineers and architects. It did not cut into their daily jobs.
This post tells you one thing. You are not asking the right questions.
