You Only Need $5000 to Make a Living

[4DTrader]

But you have to have the correct method and discipline in avoiding 4 mistakes.
If you are a very very experienced trader, you should know what the 4 mistakes are. If you are very very experienced and don't know what the 4 mistakes are, the number 4 will help you organize and categorize those mistakes into the 4 groups. You don't have to agree or disagree with me on the number 4. If you find it helpful, use it. If you find it senseless, ignore it.

My point here is that you don't need a large capital to make a living.

 

[NY0BScalper]

I agree daytrading and making $500-1000+ per day without drawdowns greater than $5000 is possible. However, without a lot of these shady Tucoesque LLCs which provide us daytraders with our leverage, we will all need a lot more than $5,000 to make a living. Given that the future of the deposit taking leverage providing industry is in jeopardy, I would say that we equity traders may need more than $5,000 to make a living.

 

[4DTrader]

Quote from NY0BScalper:

I agree daytrading and making $500-1000+ per day without drawdowns greater than $5000 is possible. However, without a lot of these shady Tucoesque LLCs which provide us daytraders with our leverage, we will all need a lot more than $5,000 to make a living. Given that the future of the deposit taking leverage providing industry is in jeopardy, I would say that we equity traders may need more than $5,000 to make a living.

Using the correct method and discipline, you will not have any drawdown. I had drawdowns only when I forgot all about my method and discipline (fuck, I never quite get it anyway).

About broker, IB will do the work (mentioning IB doesn't change the fact that IB chart is not usable, it's the execution part that meets the standard of day trading).

 

[watchdaride]

Quote from 4DTrader:

But you have to have the correct method and discipline in avoiding 4 mistakes.
If you are a very very experienced trader, you should know what the 4 mistakes are. If you are very very experienced and don't know what the 4 mistakes are, the number 4 will help you organize and categorize those mistakes into the 4 groups. You don't have to agree or disagree with me on the number 4. If you find it helpful, use it. If you find it senseless, ignore it.

My point here is that you don't need a large capital to make a living.

what are thr 4 mistakes?

 

[4DTrader]

Quote from watchdaride:

what are thr 4 mistakes?

If you have traded long enough, you can see 4 easily.

I won't tell you specifically what the 4 are. Let me provide a hint about one of the 4: after a series of heavy losses, you realize you should not do this==1 of the 4.

The reason I consider 4 is necessary is that you need only $5000 to make a living. You are operating in a very precise way. If you have a large capital, you probably don't need to realize the 4 mistakes.

 

[NY0BScalper]

Quote from 4DTrader:

Using the correct method and discipline, you will not have any drawdown. I had drawdowns only when I forgot all about my method and discipline (fuck, I never quite get it anyway).

About broker, IB will do the work (mentioning IB doesn't change the fact that IB chart is not usable, it's the execution part that meets the standard of day trading).

That's bullshit. One can't make a living with 20k buying power. 5k down, 500k BP, yes... hell, 5k down, 100k BP, making 500/day is probably doable.

"you will not have any drawdown" what the fuck are you talking about? Everytime you put on a losing trade you technically go into a drawdown. Making a good living with drawdowns less than 5k is possible but only if you get enough margin from your broker.

"4 mistakes"
I don't know what yours are, if I had to list the 4 costliest mistakes for me, it would be breaking the following 4 rules.
1) always have an out
2) if i miss the out get out anyway, at market
3) have a reason to enter the trade
4) don't take so much size that if i miss my out i will lose control of my emotions and go into chase mode.

 

[MandelbrotSet]

Quote from watchdaride:

what are thr 4 mistakes?

1. Lack of a Trading Plan
2. Using Too Much Leverage
3. Failure to Control Risk
4. Lack of Discipline
***
The Four Biggest Mistakes in Trading
Jay Kaeppel

 

[osorico]

For completeness you should know the 4 Fears too...
http://www.bigtrends.com/document.jsp?documentid=914

4 mistakes AND 4 fears, my brain is overloaded. :eek:

YOU are your own holy grail!
Osorico

 

[MandelbrotSet]

Quote from osorico:

For completeness you should know the 4 Fears too...
http://www.bigtrends.com/document.jsp?documentid=914

4 mistakes AND 4 fears, my brain is overloaded. :eek:

YOU are your own holy grail!
Osorico

Yeah I agree ... 4 is waaay too many to remember when trading ... so I subscribe to the big two and call it a day:

Fear and Hope

“Instead of hoping he must fear; instead of fearing he must hope. He must fear that his loss may develop into a much bigger loss, and hope that his profit may become a big profit"

Jesse LIvermore

P.S. Amen

 

[reiehaxm]

Quote from NY0BScalper:

That's bullshit. One can't make a living with 20k buying power. 5k down, 500k BP, yes... hell, 5k down, 100k BP, making 500/day is probably doable.

Any good trader can make $200- $300 a day with $5,000. You can trade 1 to 3 NQ futures contracts. But most traders that are "good" have a hell of alot more money than $5,000.

$60,000 at the end of the year sweeping the account to $5,000 once a month is VERY "doable". It really isn't bullshit.