The $50k in your account will have little to do with whether you trade profitable. To extract any amount of money from the market (which market??) consistently, you will need to exhibit technical mastery of trading, i.e. at which prices to buy and to sell. If you have $50k in risk capital, trading 1 or 2 E-Mini S&Ps with tight stops might be a reasonable amount of leverage for you, but I wouldn't go beyond this. You should focus on trading skills, which will be the ultimate determinant of your success or failure. Good luck
There are about 20 trading days in a month. At $500/day, you'd be looking at ~$10K/month or ~$120K/year. The number of retail traders who make that is quite small, compared to the number of retail traders total. So, you'd have to end up in about the top 5% or so of all retail traders, I'd estimate. I'd say that you need to have some reason to think that's realistic because on the surface, it doesn't seem to be. You'd probably be doing yourself a favor if you tried to do this on a simulator platform before going live with your capital.
1% a day translates into a 1100% annual compounded return (assuming 250 trading days in a year). So, you are looking to beat virtually all mutual fund managers, hedge fund managers, investment banks, private equity firms, not to mention the small traders. There are probably only a few traders in the world who can make 200% annual return consistently year after year. You are looking to beat them 5 times over. And your plan is to use the third party alerts?
was thinking the same thing, you could limit your losses to 1/12th of your acct per month,that would give you a year to go broke or get the bugs out, trade sim for the remainder of month if you hit your loss,it's very easy for an experienced trader as someone mentioned, but the way you are asking the question suggests you have little experience and will likely lose the money as tuition for your introduction to trading,not a put down just statistically likely
Here, I think, is a better question for you to ask yourself. In a business where no more than 2% of all the participants can generate 1% a day ... month in and month out, what level of skill does that tyype of performance require and, how can I get that skill and how long do I think it will take. If your expectations on those variables is reasonable ... well, it is possible although not probable. If you think you can walk in and in 90 days or six months be generating multiples of what most hedge funds shoot for then you are not being realistic. Hard to win, harder to generate 200% + returns a year and harder still if you need to perform that well. How about cutting your nut so you can live on $250? Domestic beer sucks but sometimes you just gotta suck it up!
$500 day x 21 trading sessions per month = $10,500 monthly $10,500 monthly x 12 = $126,000 annual or +252% linear $50k can leverage five emini contracts at $10k per contract +5 points NQ per day on average = +$100 per contract / +$500 per 5-lot turned All that above is easily doable by a skilled, experienced trader who has a firm grasp on trading and self-management. But fledgling traders who don't yet have those skills cast in iron cannot make $500 per day with a $5 million account. They would still net-lose in the end, because account balance size means nothing... skill-set level means everything.
why does everybody worry about how much is in your account? its laughable. a seasoned profitable trader (one in the same) will make money on most days with 50 grand in his account or 5 grand. it doesnât matter. a bad trader will lose most days with a million dollar account or a 50k account. and why does everybody talk about percentage returns? its meaningless to a daytrader. day margin makes it irrelevant. this isnt a freaking mutual fund your investing in. gosh.
I guess I just interpret the question a little different. With a 50k account is $500 a decent days work? yes and probably -900 should be a daily puke loss, where you just pack it up, even if it's early in the day and figure, "I just aint got it today."