Taking 5,000 to 100,000

Quote from galvinlee888:

you mean it let you to take $5000 to $25 ?
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Yeah :D

funny how that previous guy said that because you have a 1:50 leverage you can make it big if you manage it well.
 
Quote from lornz:

I can't understand why people recommend OTM options etc. I guess it's hard to understand the power of compounding.

Taking 5k to 100k is relatively easy, if you know how to trade.
If you're even a decent trader, you should be able to net 1.5 ES points a day on average.

That is $1500 a month. After 3 months you've got $9500 and can add another contract.

Month 4 $12 500
5 $15 500 (add another conctract)
6 $20 000 (+ 1 lot)
7 $26 000 (+ 1 lot)
8 $33 500 (+ 1 lot)
9 $42 500 (+ 2 lots)
10 $54 500 (+ 2 lots)
11 $69 500 (+ 3 lots)
12 $89 900 (+ 4 lots)

13 $115 500

That being said, $5000 is a little short. If you start out with the (assumed) max drawdown of your system, you will probably not make it. I would venture to say it should be doable about 50% of the time.

If you double your account size, you could trade the CL. Netting 50 ticks a day is quite achievable. This will take your 10k to 120k in a year, trading only one contract.
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Thanks Lornz, that's the explanation I was looking for on why so many scalpers are USD trillionnaires ...
 
Gave the trading outline a go around today. Es, 1 contract, +363.

Trades for Today:




After removing funds from the account to bring it to 5000K, I have decided to post once a week the snapshot of the EOW balance along with a few trades from the trade log.
 
Quote from luisHK:

Thanks Lornz, that's the explanation I was looking for on why so many scalpers are USD trillionnaires ...
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What? You don't appreciate a good joke?
 
Sorry, missed the joke as I have read such posts before on ET written seriously :(

Still I might be a little uptight today...
 
Quote from luisHK:

Sorry, missed the joke as I have read such posts before on ET written seriously :(

Still I might be a little uptight today...
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Don't you know we are all trillionaires on this site?

The point is valid, though. If you have system with positive expectancy on a liquid instrument, you scale up. It is really that simple. Unfortunately, most of the readers on this board will never adopt that mindset and look for those edges.
 
Quote from NoDoji:

Yes, it's been done by ET member Neke:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=213286

He uses a retail platform and trades while holding down a full time job.

My recommendation is to trade options. You can risk a very small portion of your account and still generate decent gains, and you'll always know your total risk per trade in case a major news event renders a trade worthless. If you buy a call option on a high flying stock for $500 and price makes a new high in a strong trending move, you could net a 200-300% or more gain. If a news event causes the stock price to gap down overnight 20 points and the call expires worthless, your max loss is $500+commission.
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The trading outline gives the stage when stock options will be incorporated. If you look at the outline, I plan to trade the es intraday increasing contracts with account size. With futures I don't have to spend any time with research, but with options I have to spend time doing research and looking at many stocks. As you will note, I have provisioned to withdraw a salary every month for my work. Options trading begins once the account is large enough to pay me for the additional time required to reasearch the stocks.
 
Quote from ForexForex:

$$$ OPTIONS $$$

Just take a look at the option chain of any number of stocks and you can see that $5,000 to $100,000 is very possible. I'm referring to buying options, 1 strike OTM.


GOOG
QQQ
NFLX
AAPL
SLV
RIMM
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Why OTM? Let's say I think next week AAPL will closer $10 lower than Fri close, wouldn't ITM near term Puts be better, given I want to close the trade within few days. I'm not a options expert, just asking.
 
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