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

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

  1. 50%/year on 1M is not all that impressive actually. I did better than that in 2020 with <1M. 50% a year on 1B+ is much more impressive. There is a long tail of anomalies too small for the big hedge funds to waste their time allocating 0.001% of their NAV.
     
    #31     May 24, 2021
  2. Overnight

    Overnight

    That is sort of what I was alluding to earlier, but $1 million is wholly inadequate to carry 10 NQ through a swing. My original thought with 1 Mil was 5 NQ, but that will not survive a retest of March 2020 lows. and 10 NQ would be account blowout. Prepare for the worst.

    So in planning for a rapid 50% drop, the most one would want to risk is 3 NQ. 7000 point drop from here would be -$140,000 x3 so $420K in the hole. Tack on 18K x 3 for performance bond, and yer down a total of $474K.

    That leaves you with just over half your account to try other bits.

    50% drop is a more extreme scenario, but we all know it has happened before. So it it a conservative figure. Buy, hold, roll. That's all you have to do.

    Today, if you closed 3 NQ long that you had bought at last night's open, you'd be up ~$18,000. That's ONE DAY. Think about it.
     
    Last edited: May 24, 2021
    #32     May 24, 2021
  3. deaddog

    deaddog

    I hear you. I'm having trouble finding stocks that meet my entry criteria. Lots that click some of the boxes that look promising but fizzle out pretty quick and only a few that click all the boxes.
    I mainly trade the Canadian market and materials have moved pretty good. Keeping losses small but not much running real strong. Having a hell of a time outperforming the indexes.
     
    #33     May 24, 2021
  4. deaddog

    deaddog

    Way over my head. If I needed to figure that out I'd throw it on an excel spreadsheet.

    I think the OP wants to spend his 5% per month.

    I wish him luck.
     
    #34     May 24, 2021
  5. qlai

    qlai

    Watch this video. I think he is too optimistic and not acknowledging the high risks he is taking with leverage and concentration (probably on purpose as he sells his services). Nevertheless, it’s probably the closest you will be able to come to what you want to achieve given the amount of effort you are willing to spend.

     
    #35     May 24, 2021
  6. Overnight

    Overnight

    48 mins? Man, is it worth it?
     
    #36     May 24, 2021
  7. Cuddles

    Cuddles

    #37     May 24, 2021
    jys78 likes this.
  8. qlai

    qlai

    No, but I don’t find many videos that show how to trade large accounts.
     
    #38     May 24, 2021
  9. Overnight

    Overnight

    You're right, it's not worth it. I skipped around the first 6 mins of the video and he's going on about PM and blah blah blah. Like I typed above...3 NQ, 300 point gain =$18,000. In one day. Screw all that other educator noise.

    Better tax treatment, too!
     
    #39     May 24, 2021
    beginner66 likes this.
  10. O.M.G. This guy is still around. How funny. I thought he disappeared a long time ago.
     
    #40     May 25, 2021
    smallfil likes this.