What do you do with the $1K you make every day? And why don't you use it to grow ur account and make some real money?
If he only needs 26K in his account to make 1K per day, why does he need more to make more? Is 1K per day not good enough?
That's the crazy thing. One day I'll have my track record audited. It's way better than theses YouTube daytrading furus! What do I do? I withdraw the cash and use it to pay bills and spending cash. Last month, I paid my hefty property taxes from the gains on this account thus not touching my normal bank accounts. Ka-ching. Nice. Mind you, I have multiple trading accounts and available capital significantly more than $26K. But I want to continue to refine and practice my edge and expand my edge to the point where making $5K/day is automatic! Not there yet. The highest one day gain so far on this account was $9K/day. It was as high as $13k but the stock keeps on getting halted so I couldn't get out of everything. Had I been more aggressive it would be have been easily $45K day on that trade with this small account. Of course those kinds of opportunities don't come everyday. But opportunities to make $5K/day should come everyday with the edges I know. Just need to get better at capitalizing on them. Once I get really good then I'll scale up and start aiming for the $5K+/day goal.
Yeah, I've thought what is my next step. My strategy trades extremely liquid large cap names unlike the YouTube trading furus trading microcaps and small caps. So, I don't see a capacity issue with my style. Here's my take on the situation. Hopefully in 1 -2 yrs, my skill level will get to the point where I consistently make an average of $5K/day. That means not every day is $5K but on most days even with losses accounted for average in. I see that happening within 12-24+ months of trading and constantly improving. Very doable. $5K/day on average works out to be $100K/month or $1.2M a year. Let's round down due to losses to and vacations or days away from trading. So, $1M/yr. At that point, what kind of backer/hedge fund/prop situation would make sense? The capital base and/or access to capital would need to generate at least 10x. So $10M a year. Doable. But at hedge fund you get at most 20% cut or 10%-15% cut as portfolio manager. So, let's say 15% generously. That's a very high cut since the hedge fund themselves only charge the customers 20%. They need to keep some for the partners and management. $10M profits & 15% is only $1.5M/yr in profits which is no better than my situation assuming I get to the point where my skills can net me $1M/yr. Unless, I manage to scale up to make $100M/yr. Now we are talkin'. 15% cut of $100M is $15M/yr. But I'm not a stage where I definitely know if my strategy is that scalable though I think it's possible with swing trading and automation. The alternative is a prop shop. Their cut is better at 50%-70%. That's the next logical step I think. If I'm at a prop shop and scale my strategy up and make $10M/yr with 50% cut that's $5M/yr. With 70% cut would be $7M/yr. But I would prefer a higher cut. Do you guys know any good legitimate prop shop with a high percentage cut, stable, and ample capital? I'll look into that in 1-2 yrs. But once I get to that level in 2 yrs time, I might NOT be interested working for anyone anymore at that point. I can just be at home and trade and make $1M-$2M/yr. Travel whenever I want. Have lots of family time. I'm getting close to my daytrader dream I had over a decade ago... This is after thousands and thousands of hours of heartaches, losses, account blowups, profits, swings, ups and downs of all sorts. It's been the longest journey of my life! Check back in 2 yrs.
$1K/day is not good enough considering all of the efforts I put in. We are talking thousands and thousands of hour over a decade. This is the practice part. I'll steadily scale it up over time.
And then there's a few flubs with GC, and yer back to square-one. You're going to be mad as hell at me when I post my next journal update. It's just sad. But this? "Mind you, I have multiple trading accounts and available capital significantly more than $26K." Then why the hell were you sweating a few bad GC trades? Do yourself a favor and forget the pipedream of the ESPN. Slow and steady wins the race. Always.