Would like to get some feedback on the following "not so hypothetical". Consider the following constraints: - U.S.-based brokerage account with $1 million in cash - monthly target of 5%/month; this will be withdrawn, so account won't grow - max trade limit of 50 trades/month - ideally no more than 2-3 hours/day of watching/trading markets - lowest risk to achieve the 5%; in other words, would rather have less risk than a return greater than 5% How would you approach this? what markets/instruments? what trade sizes? where to place stops and limits? other thoughts? Thank you for your time.
trade small illiquid markets that the big boys can't trade. Korean microcaps or something. But you'll need more than 2 hours a day to do it well.
IMO ....... 5% monthly is unrealistic. With a $1 million account I would buy & hold dividend paying stocks and withdraw the dividends.
If you have to ask, then you shouldn't try. Just put it all in Invesco QQQ. (I have the solution for you, but it does not fit your "daytrading" scenario. It involves something called "index futures".)
Start by breaking the problem into it's smallest usable chunk. 50k/mth = 20 trading days per month (not incl crypto) = 2500 per day. Given that not every day will be profitable and possibly even produce a loss, add 20%... 60k/mth needed, 3k/day, to net out 50k/mth. Is that doable with $1M? You know what the answer is FOR YOU! NB: Your constraints (number of trades, time spent etc) may be at odds to your answer. Good luck!
Buy TQQQ. Rake in the $$$. Thank me later. Edit: I'm not even sure the TQQQ juggernaut can even provide 5% a month lol, that's a lot!