Making a living with a $30K account

Quote from stock_trad3r:

25:1 margin is suicide
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...and that's what I've been trying to tell him. I really don't think you can extrapolate results of 60% per year unleveraged to 600%+ per year leveraged, but for some reason he thinks he can. :(


...and BTW, thanks for not recommending AAPL or BIDU with 100% room to go UP in this thread :D j/k
 
Quote from daveb351:

Suggest he reads " Trade your way to Financial Freedom", by Van Tharp. Money management & having a trading plan is the key. Never enter a trade where the reward is less than 2X risk...if he adheres to this he can do it.
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ur better off reading "super system" by doyle brunson...:p
 
"Do you guys think that it's enough capital to achieve this goal?"

NO, HELL NO.

Just do the math with the "expected/required" rate of return, he could own the market in short order.

He could "gamble" to make a short run and increase his capital exponentially but to try to do this on an annual basis for an annual income probably is not in the cards IMO.

Joe.
 
Quote from u21c3f6:

"Do you guys think that it's enough capital to achieve this goal?"

NO, HELL NO.

Just do the math with the "expected/required" rate of return, he could own the market in short order.

He could "gamble" to make a short run and increase his capital exponentially but to try to do this on an annual basis for an annual income probably is not in the cards IMO.

Joe.
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ATM, I don't think it's his intention to "own the market", just to pull in 60-100K a year. I'm pretty sure that liquidity isn't an issue when you trade 5-50 contracts or even more.
 
Market's open, and I'm gonna be busy, but just a heads-up.

Don't take futs advice from guys who don't know how to trade'em.

Now, you can take that as you will.

JJ
 
Quote from l2tradr:

ATM, I don't think it's his intention to "own the market", just to pull in 60-100K a year...."
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If he could do that, history would regard him as "extraordinary".
 
Quote from l2tradr:

Hi,

A friend of mine is wondering if one can make a living trading the YM or the ES with a $30K account. He's been trading stocks for 5 years, with approximately 60% yearly returns (day-trading, no margin). Great money management in place, with very low drawdowns over this period.
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And why oh why would he abandon that?

60% returns with no margin and low drawdowns. Using $100k (he has more you said) and 2:1 margin that's about $120k in stable (you say) income.

My advice: stick to what you know and do well and enjoy the nice income and don't spend it all so you'll compound the capital base.
 
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