How not to lose money

should be "how to know what you're going to lose"

this is the perfect thing for ai to help you come up with a plan.

like how do i make 1mm in 250 days with 4k and maintain 50% reserves in the account.

Mock - Professional Trading Plan Outline

1. Trading Performance Overview

• Win Rate: 90%
  
  
• Gain per Win: $100
  
  
• Loss per Loss: $500
  
  
• Contract Increment: Add one contract per $1,000 profit
  

2. Trading Frequency

• Trading Days per Year: 250
  
  
• Average Trades per Week: 3
  
  
• Total Trades per Year: approximately 150
  

3. Financial Details

• Starting Capital: $4,000
  
  
• Reserve Capital: 50% of $4,000 = $2,000
  
  
• Available Trading Capital: $4,000 - $2,000 = $2,000
  

4. Contract Details

• Margin per Contract: $400
  
  
• Initial Contracts: 2,000 / 400 = 5
  
  
• Commission per Trade (Round Turn): $5
  

5. Annual Trade Outcomes

• Number of Wins (90% of Trades): 150 * 0.9 = 135
  
  
• Number of Losses (10% of Trades): 150 * 0.1 = 15
  
  
• Profit from Wins: 135 * 100 = 13,500
  
  
• Loss from Losses: 15 * 500 = 7,500
  
  
• Net Profit Before Commission: 13,500 - 7,500 = 6,000
  
  
• Total Commission Cost: 150 * 5 = 750
  
  
• Net Profit After Commission: 6,000 - 750 = 5,250
  

6. Risk Management

• Risk of Ruin: Calculated based on trading parameters.
  
  
• Maximum Consecutive Losses: 2,000 / 500 = 4 losses to maintain 50% reserve.
  

7. Path to $1 Million

• Quarter 1:
  
  • Aim to grow capital to $10,000 by reinvesting profits and increasing contracts.
    
    
  • Expected Profit: 37.5 * 5,250 / 150 = 1,312.5
    
• Quarter 2:
  
  • With $10,000 capital, increase to 10 contracts and aim for $25,000.
    
    
  • Expected Profit: 37.5 * 5,250 / 150 * 2 = 2,625
    
• Quarter 3:
  
  • With $25,000 capital, increase to 25 contracts and aim for $100,000.
    
    
  • Expected Profit: 37.5 * 5,250 / 150 * 5 = 6,562.5
    
• Quarter 4:
  
  • With $100,000 capital, aim for $1,000,000 by scaling up trades to the maximum feasible based on market conditions.
    
    
  • Expected Profit: 37.5 * 5,250 / 150 * 25 = 32,812.5
    

Important Note:
This plan is highly ambitious and assumes ideal trading conditions. Real-world markets are dynamic and inherently risky. Ensure strong risk management practices and adapt your strategies as needed.

 

Don't trade. Don't lose.

 

It depends.

For a decade or so that was true.

In the last few years you would have lost 20-30% or so to inflation (even allowing for +deposits -taxes).

Also, cost of opportunity, etc.

 

I only paper day trade. Guarantee not to lose any real money.

 

High Performance, MY ASS.

Remember your mentor?

https://www.elitetrader.com/et/threads/tim-morge-and-the-well-chosen-example.305061/page-23

The one I exposed as a conman here on ET, and later committed suicide?

Remember that dude, Timothy Morge???

Where is that loser @VPhantom

Weak people...

 

Or trade only on a demo account, then you definitely won't lose your real money)).

 

No pain no gain and even if we trade through demo account we don't lose real money yet we can learn from our mistakes and improve our skills.

 

Such preparation will be very important for a beginner. Yes, no one makes money on a demo account, but they also learn not to lose their money there, creating their trading strategy there and optimizing it for future safer trading on their real account.

 

A new trader should stick to trading demo account for at least a minimum of six months before moving to trade live. This can also help them learn the broker processes and the trading mechanics without investing any money with the broker.

 

Immersion therapy.