Was your friend a profitable position trader that then switch to day trading or was your friend a losing position trader that switched to day trading ? Was your friend trading stocks ? What gave him the illusion of +10k per day in day trading profits ? Edit - After a quick re-read...he was a profitable position trader that traded 8 - 10 times per year. Therefore, why would he leave something that was profitable or why didn't he switch back from day trading to position trading when he had reached the 1/2 of losses ? wrbtrader
Day trading is not scalable. You cannot put $10 million into a penny stock with float of say 500,000 shares trading at $2? Even Timothy Sykes said so. That is why he is giving seminars. With a small account you can make a lot of monies percentage wise. Swing trading, you can trade in larger size and if that is not enough, you have stock options on top of that too.
Can I ask why did you pick a month vs something like a 30-day period, or 1-2 weeks, or even just a day?
Loads this 1 has only 1 rule which is keep balance above $99,375 then when you hit 102,000 increases to 100,010 easy to remember and not get tripped up.
Boredom, Self sabotage, Greed, Ignorance, Hope. Personality changes after winning. Traders become more reckless thinking they are invincible.. And once you start losing you cant stop digging the hole. Have to win it back.
How can someone make any money with $500 on a trade? I mean they can day-trade options on a very liquid stock or SPY etc, but they better know wtf they're doing because that's a tough game to win at. So with $500 you could buy what, like 25 shares of SPCE @$20. If your timing is perfect you make $12. I realize there's penny stocks out there that suddenly catch momentum, but that'll all die when this latest round of (circa 1999 re-visited) Robinhood traders all go bust. I don't consider that day-trading really. You've gotta use at least use $9K on a $450K account to scalp any kind of money. Maybe I'm wrong. I'm all ears, how do you do it with $500?
Your friend is dumb or this story is not real. A) As a profitable trader, he should be smart enough to aware of that his new trading strategy aren't working and he should trash it after 3rd or fourth attempts. B) Every experience or mature trader would test out and improve new strategy for weeks to months before using real money to trade it because one needs to know what market conditions this strategy can help him/her to make money. C) There is NO WAY I'd let that new strategy to ruin my whole account. Capital preservation is #1 rule in this trading business and it's suck that your friend didn't realize it and therefore, calling him a day trader is an insult to this profession.
I meant $500 is your risk to your stop on each day trade. You might own 100 shares (5 point stop) or 1000 shares (1/2 point stop).
Trading profitably for the past 6 years? WTF does that mean? Just about anyone who has bought anything and has held that position has been trading profitably for the last 6 years. The last 11 years to be exact. Well, obviously there is one thing you could not teach your friend in all those hundreds of hours of tutelage, and that is discipline. Discipline is required in all styles of trading and you either have it or you don't. Besides not having discipline it sounds like your friend has an issue with greed as well. As the saying goes "It's easy to cheat a greedy man" - 'sucked into day trading' - 'falling for the flashy trading literature' - You make it out that he was victimized by something other than his own greed. And with $450K positioned how did he not have $10K days? That's only a 2.2% day, there have been plenty of them in the last 6 years. Well, that sucks. I'm sorry to hear that but it could have happened in any high risk business. He could have invested in a restaurant in January 2020 and lost it even faster. This statement is not true. Some guys make it and get out, and then there is Jim Simmons. The general definition of scalping is not just trading the spread which for retail traders is really only left in crypto. HFT has erased that from all other markets. I consider my self a scalper among other trading designations because I trade a system that uses a 1 point target on the ES. Trades last take between 10 seconds and ten minutes on average. Some traders prefer daytrading, "they are much happier" because they are not thinking of their position during the night or on the weekend. Its more like a job that is resilient to 9/11 type events. Ultimately, I think most all traders are happier after saying adios to trading, after finding something better, after making a substantial amount or certainly after losing a substantial amount.