If you are a day trader with a persistent edge, are you a millionaire yet?

Discussion in 'Trading' started by Blitzjoker, Oct 24, 2020.

  1. Tradex

    Tradex

    Seriously, you work for the Tax people or what?
     
    #201     Jul 1, 2021
  2. deaddog

    deaddog

    Actually I swing to position trade. I have day traded and although profitable as a day trader, I'm able to get about the same return swing trading; with more time for other endeavours and way less stress.

    Why would you assume that we haven't made any money trading?

    If you want to learn, rather than telling me what doesn't work, you should be showing how you trade and asking what you could do different.
     
    #202     Jul 1, 2021
  3. newwurldmn

    newwurldmn

    swing trading equities allows for you to capture the natural updraft so that is a little bit of a tailwind.
     
    #203     Jul 1, 2021
  4. I do pretty well for myself. Not over $2 mill yet, but 6 figures a year from ES.
     
    #204     Jul 2, 2021
  5. This does not happen for one simple reason: it is impossible to make a profit every day by making only one trade a day. You didn't take into account that if you follow your plan, there may be no deals at all. Also, trading strategies are not ideal and there will be days or several days with a loss. And you will lose money. Moreover, the market may present some surprises or not move at all. And it’s impossible to make money for some time.
     
    #205     Jul 14, 2021
  6. Blitzjoker

    Blitzjoker

    As stated before, you do not have to win every bet. It is down to an edge and an average expectation per bet.

    Say you have £1000, and spreadbet £1 a point on the Dow each day. You set a stop at 20 points. So your risk is £20 or 2% of capital. So first day the stop is hit and you lose £20. Second day you break even. Third day you win £20. Fourth day hurrah, you win £40 (still only 2:1 risk reward ratio). Total profit is -£20+£0+£20+£40=£40 over 4 days, or average of £10 or 1% a day. Repeat over and over, increasing your £1 a point day by day and eventually you will have your million pounds.

    The point of the thread is that this all sounds possible to the uninitiated, but the fact that most day traders are not millionaires means that it is probably not as simple as the example above might suggest. However the assumptions made are not that outrageous (until you try doing it), and if many traders on here were as successful as they say they are, then they would be millionaires by now.
     
    #206     Jul 14, 2021
    comagnum likes this.