$8k to $80k in '08

New year, new campaign.

Simple premise:

Starting capital: 8,294
Trading ER2
One year into futures trading
Start date January 22, 2008

 

What's the simple premise? Daytrading with the trend?

 

simple premise in terms of journals, ie another futures daytrading journal.

method = whatever works

 

That's too vague. I figure this journal will die out very fast.

 

Thanks, I take it you voted no. I like doubters, fire away.

 

It would be nice if you had some sort of strategy or plan.

I'm experimenting with day trading the YM mini-dow and going with the daily trend. So far I'm doing OK but I take profits way to fast and am still refining my strategy.

 

I do.

Good luck with your trading.

 

I hate ER2, but good luck to you.
I'd be more interested if you were trading ZN or ZF.

 

Can't know until you tell us what kind of approach you'll be taking (generally, not specifics). Some strategies will involve limited return in exchange for limited risk.

To get 1000% return, how much risk do you figure you'll be taking on?

You're one year into futs trading right? So I'm sure you would agree that with an $8,200 account, $200/day consistently would put you among the top guys on the planet with 1 year experience (if you hadn't really thought of it that way, I can assure you that this is the case). So what's that, $1000/week times how many effective trading weeks, 40? So that would be $40K return.

So that's $40K a year if you can manage 2.5% on your equity EVERY DAY on average. Now, what do you think the chances are that you will have a losing day in there? Pretty good? So what about the chances that in that 40 weeks you will have 10 losing days? Also possible, right? 10 losing days out of 200? Maybe even more right?

So really to make $50K you have to make ay least 3% on your equity EVERY DAY. And that assumes about 180 out of 200 winning days. I say 50K because you'll have some effect from compounding in there. These are just very rough figures. don't hold me to the math.

So what do you think?

 

if you give your best and dont get discouraged from eventual drawdowns you are able to do it I believe. And dont implement thoughts like the must to make a certain amount of money every day just to stay mathematically on track. That is a big hindering crap. Make 100% profit first and then rethink again how realistic 80k are.
Good trading,
P.