Advice on how to make 5%/month on $1 million

Discussion in 'Trading' started by blaze1635, May 24, 2021.

  1. ajacobson

    ajacobson

    So assume this is a legit question, but let's reshape this. The objective being the highest rate of return uncompounded.

    Last year's best asset managers were in ESG, Cloud, and the broad market. Volatility trading also did verywell, but tough to find a good manager without greater size.

    How much risk can you take?

    So you'll need to diversify and you'll probably have to use mutual funds as it takes a lot more $$ to attract the greats and there is no assurance that they will remain great.

    I'd put about 30% with a great mutual fund with very low fees.
    Great means consistent performance.
    25% with a great commodity trading pool.
    35% with VC/PE manager.
    5% in gold and 5% cash.

    Everything possible goes right and you probably hit close to 3% a month, but you won't have monthly liquidity and taxes will take a bite.

    Should you leverage up where you? That depends on you and your appetite for risk.

    A million dollars will be too little to get a quality VC/PE firm. Really focus on whatever tax bill -if any- finally get traction.

    Good luck.
     
    #21     May 24, 2021
  2. smallfil

    smallfil

    Yeah, it is so easy to make that 100% in the stockmarket, why not 1,000 or 10,000%. You are a top trader right? Maybe, you should mentor blaze1635 and he could give you a cut of your huge profits. Both of you would be trillionaires.
     
    #22     May 24, 2021
    jys78 likes this.
  3. Yes but it’s not as simple or as feasible as I made it out to be. It is how a highly trained team of analysts would approach this, though.
     
    #23     May 24, 2021
    terzioglu and DiceAreCast like this.
  4. deaddog

    deaddog

    What seems to be different this year?
     
    #24     May 24, 2021


  5. Wait... WAT? So many questions.

    There are tons of dividend funds and ETFs. Can you point to any that have outperformed the SP500 over a significant amount of time? Your basic strategy seems to be based on the view that dividend stocks can beat SP500 over time. I don't think that is the case, almost certainly not over a full stock market cycle. Shorting SPX is generally a recipe to lose money lol.

    How on earth do you lever up 4 to 8x doing what you are doing? So far as I know, one can only invest 200% of ones equity in the U.S. stock market. And, of course, if you so long dividend stock A for $100, and you short SPX for $100, you don't net the two and call it basically a zero investment, that is considered $200 invested. I don't see how 4 to 8x is possible just buying/selling stocks and funds.

    Excess cash each day? Dividend yields are very low. Even a 7% yield would be 70,000... FOR THE ENTIRE YEAR. So about $278 each trading day to "hedge out" with. A true pittance. And, since you are on margin, that would be reduced by your short/margin interest as well. Very little excess cash.

    I think I just got trolled, but I hope I'm wrong and you can edumacate me on your methods lol!
     
    #25     May 24, 2021
    TimtheEnchanter likes this.
  6. guru

    guru

    That guy is nuts. Anyone able to get 5%/month would simply borrow $billions from banks, investors and even countries, and pay them back 10%/year. They would be super excited to get 10% because they can’t be guaranteed that much anywhere.
    While the guy making 5%/month would make $billions in a year, and wouldn’t even need a $million to start.

    While when you do have a $million you should at least have basic education and know calculus.
     
    #26     May 24, 2021
  7. deaddog

    deaddog

    Why calculus?
     
    #27     May 24, 2021
  8. VicBee

    VicBee

    I'd say last year was easy, just about any stocks were going up after the March mini crash. Maybe this year is a more accurate reflection of the challenges of making money as a trader? The tech sector which I trade is in a slow downward spiral (ARK anyone?) which can't seem to find the momentum to snap out of it. I understand it's cyclical and the sector had peaked but I expected a quicker, steeper turnaround. It's an opportunity for me to learn .
     
    #28     May 24, 2021
  9. guru

    guru

    #29     May 24, 2021
    cobco likes this.
  10. notagain

    notagain

    NQ 10 contracts, wait for pattern to swing trade. Check QQQ for massive options open interest.
     
    #30     May 24, 2021
    Pekelo and Lou Friedman like this.