Day trader monthly performance and returns

Discussion in 'Stocks' started by trefledez, May 20, 2021.

  1. Millionaire

    Millionaire

    Percentage of your account risked per trade.

    eg for a 10K account, risk $1000 dollar per trade. Thats 10% of the account.

    You only need to make 5R (5 lots of $1000) in net profits to make a 50% return.

    Doesn't sound very hard, but in reality there will be losses and losing streaks, as no one can win 100% of the time.

    So you need make at least 10 trades a month. Some losers and some winners, and hope the winners are bigger than the losers to net that 5R of profits.
     
    Last edited: May 20, 2021
    #21     May 20, 2021
  2. easymon1

    easymon1

    You don't factor in your stop loss level?
     
    #22     May 20, 2021
  3. Millionaire

    Millionaire

    That is an internal detail.

    You only have to model the risk (and reward) and how much the risk is as % of the account.

    Your risk is how many dollars you can lose on the trade (as a % of your account)

    Commonly that is how much you will lose if you get stopped out. But could also be the cost of an Option with no stop.
     
    Last edited: May 21, 2021
    #23     May 20, 2021
  4. Nobert

    Nobert

    4,225,137,790,259.17

    Is what you get after 120 months (10 years) at 18%.

    Not that many billionaire youtube traders tho.
     
    #24     May 21, 2021
    trefledez likes this.
  5. tonyf

    tonyf

    This post sums up what Reddit is all about. OP learn to walk before you run and do not listen to any of the non-sense posted here.
     
    #25     May 21, 2021
  6. Snuskpelle

    Snuskpelle

    1) Why do you think he's asking the question in the first place? Granted, it entirely depends on his definition of "intermediate trader". If it's solely because he saw someone claim they could do it, he most likely won't. But if he is able to get into that interval (on his account, not full net worth) then the question makes sense.

    2) Most of the time, people being dismissive are comparing apples to oranges or don't know oranges exist because they eat apples.

    The stats certainly are what they are, but there are overachievers out there that can do what I or most people can't do. They nonetheless don't become billionaires since DT doesn't scale.
     
    Last edited: May 21, 2021
    #26     May 21, 2021
    trefledez likes this.
  7. VicBee

    VicBee

    I wouldn't set unrealistic expectations that will frustrate you when you don't achieve them. Also, be ready to smooth your win/loss over a time period so high months compensate for low months...
     
    #27     May 21, 2021
  8. virtusa

    virtusa

    And what is the starting capital? Because without that I can't have any idea about the performance.
    You would surely beat all the crypto's.
     
    Last edited: May 21, 2021
    #28     May 21, 2021
  9. virtusa

    virtusa

    Wrong, a lot would still be trading. You cannot buy a beautiful house,not work anymore, and live the rest of your life of this $5 million.
    If you want a house on a very good location maybe the $5 million will even not be enough just to buy that house.
     
    #29     May 21, 2021
  10. DaveV

    DaveV

    I am not sure what you mean by Wrong, since I didn't make a statement. I only asked how many Day Traders would still be trading after accumulating $5 million? I imagine that any traders that enjoy trading itself, or are very competitive would continue trading. Witness guys like Bezos, Bill Gates, Warren Buffett who have accumulated tens of billions but continue working. But $5 million is more than 92% of the USA would earn in their entire lifetime and a lot of traders would be more than happy to retire with that amount.
     
    #30     May 21, 2021