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syamster

Realistic daytrading

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Hi,

 

What percentage do you look to make on a daily or weekly basis. For example, if I invest 10,000 which would give me 40,000 of buying power, is it realistic to think I can make 600 - 800 per day? Or 12,000 - 16,000 per month.

 

If these numbers are not realistic, please tell me what is.

 

Syamster

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Hi syamster,

 

Are you trading stocks or futures? If you have $10,000 capital and decide to trade the emini's, $150/day is a realistic goal. This is 30 points of the Dow or 3 points of the S&P 500.

 

If you plan to make $600-$800 a day, I would recommend starting off with at least $40k for the emini's. This is because I recommend 1 contract per $10k. $40,000 would get you 4 contracts. 30 points a day with 4 contracts will get you $600. Trying to make $12,000 - $16,000 a month with $10k is not impossible but highly unrealistic.

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No, I don't think that's realistic. That's a return of 6% to 8% a day and a return of 120% to 160% per month! Perhaps less than 1% a day is realistic.

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Syamster,

 

Most Probably...

 

First hurdle is the day trading rule regarding your account balance. In order to day trade every day, you must have atleast $25,000 in your account. There are ways to do a trade every day where you buy just before close, based on specific parameters, and sell in the morning (Charline's method), thereby circumventing these rules.

 

Of course, the big determinator is your stock picking ability.

 

One trade - 1,000 shares of a stock that moves 60 - 80 cents with perfect entry and exit, and you're done for the day. There are many stocks that will move this much. I've watched them do it without having a position in the stock. Finding them is the secret.

 

Of course, there are many trade combinations that will give the above results. However, most active stock movement occurs in specific, short, time frames, making it difficult to have multiple trades on at a time with limited funds. Look for stocks that have a broad daily trading range, become familiar with them, learn their habits until you can nail them. As everyone says "paper trade." And even that won't prepare you for reality. There are many lessons in reality.

 

I am trading for a living and have not reached my goal yet. I have learned many lessons. Let me know how you do.

 

Earsha

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earsha and soultrader, thankyou for your advice and agree with you on many levels. The day trading parameters of $10,000 or $25,000 is not a problem. I have been focusing on a few stocks that have a tremendous amount of volume and have been watching their patterns. Also, I usually only have one trade going on at a time so I can stay focused and give each trade my full attention. BUT I'm really curious if the amounts I mentioned are realistic. On 40,000 buying power, can I average 1.5 - 2 percent profit per day.

 

Syamster

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In my opinion, it is very possible to get your 1.5 to 2 percent per day. The variable is all in your ability to find the right stocks, get the right entry, manage the trade with a balance of fear and greed (risk to reward), and finish with a timely exit.

 

I have made more than 2 percent in a day before, but I am not yet consistent. I have also had a profit and let it drift away, greed making me think it would come back. I have also exited too soon, fear limiting my profits. It's all in your skill and the balance you achieve between all the variables.

 

Bottom line, yes, it is very possible, however, you will probably not achieve that right away. I consider myself an intermediate trader as far as experience goes. I would ask that some of the more advanced traders on the board give you some input as well. I have spent a lot of time watching stocks move. There are plenty of them out there that can provide what you seek. It's all a matter of finding them and working them with finesse. My wish for both of us is that we achieve that rapidly.

 

Earsha

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Hi syamster,

 

In day trading stocks, you need $25k which will give you $50k buying power. In futures you get more leverage.

 

With $50k... I am sure you can find stocks that will give you $1 a day. But you need to consider the risk. 1-2% is not impossible. But because of your high expectations you may take more risk for gain. This can turn out positive or can lead to financial suicide.

 

If you have a strategy that is already tested and works... go for it. With $40k - $50k capital... getting $600-$800 a day is very realistic. Just make sure you control your size.

 

But with just $10k.... this is pretty unrealistic.

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One trade at a time, thats not make sense. These stocks don't all move at the same time or like each other. That's why on any given day, some will move more than others. You're going to have the opportunity on some of them every day. Remember, all you're looking for is a 2 to 3% change. That happens all during the day. So my opinion is split your money and do more trades. Watch those stocks for several days and you will see the long smooth runs on the charts.

 

Johalber

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Hi,

 

What percentage do you look to make on a daily or weekly basis. For example, if I invest 10,000 which would give me 40,000 of buying power, is it realistic to think I can make 600 - 800 per day? Or 12,000 - 16,000 per month.

 

If these numbers are not realistic, please tell me what is.

 

Syamster

 

Just a friendly advice

 

Traders and doctors share something in comon. If doctors were focused on how much the will make off every patience, their concentration will be spoiled, therefore will get into trouble. Same is for traders. In the moment traders start looking for "how much I can possibly make if....." then disaster follows. Talk from experience.I've been there/done that....many times

 

Traders have a huge emotional pressure as the market is looking to rip them off, especially those days that you're in the wrong side of the market(for whatever reason). Your job is to keep your head up above the water and wait for the waves to settle.

 

If you want to talk about numbers, in this business, you can win as much as you can lose. It's that simple. Concentrate yourself in mastering the trade and I assure you, money will stick to you like crazy glue.

 

About trading capital, anything less than 25k in my experience is just play-money unless you have a plan to increase your equity(and have patience) while you're keep bringing food on the table with a 9-5 job.

 

Last thing....maybe a little out of subject but

 

Help is available for free and @ the speed that internet brings You only need to start diggin'

 

Raul

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I think if one looks at a desired figure then that will not be the correct approach. One should concentrate on trading only, how much you earn will be decided by your effort only.

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I think if one looks at a desired figure then that will not be the correct approach. One should concentrate on trading only, how much you earn will be decided by your effort only.

 

I agree. While of course with trading being treated as a business, it is always necessary to have a profit goal, I believe that setting profit quotas, etc is something to be worries about only after you know you are consistently profitable (I'm not saying you aren't already, just speaking in generalities). My idea is to trade as an adjunct to my normal job (I work 1-930 at night, so I can be present in the market to observe, etc) until I know I have built enough capital and consistency to make it full time. By that point, I plan to have set up a business model including profit goals, etc. Sorry if I went off on a tangent.

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If you had an account with $10,000 in it you could trade 2 HSI contracts for a realistic return (if you are trading well) of $1,000 per day on about 10 trades. So thats 10% per day.

 

HSI is thin though so scaling up is the issue.

 

The other challenge is consistently trading well (that's actually the real challenge).

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Hello Syamster:

 

I read through some of your posts on this board, and like you was getting started in day trading equities. I noticed you posted a few months ago and was wondering how you have been doing? It seems we have similar parameters and I was wondering if you were meeting your 1.5 to 2 % daily goal? What have been your biggest hurdles, obstacles? Successes? Would enjoy hearing some of your beginner experiences if you have time to post them. Thank you.

 

MPBigley

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Hi,

 

What percentage do you look to make on a daily or weekly basis. For example, if I invest 10,000 which would give me 40,000 of buying power, is it realistic to think I can make 600 - 800 per day? Or 12,000 - 16,000 per month.

 

If these numbers are not realistic, please tell me what is.

 

Syamster

 

Syamster,

 

The first goal should be capital preservation. The second goal should be maintaining capital preservation. The third goal should be profit only after you have learned to maintain your capital preservation.

 

Anything else is a gambling mindset that may be ok for a while but will surely see disaster in the long run.

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