Depends on your daytrading statistics. What kind of stops do you use ? What's your accuracy like ? Then use probability projection to see how many losers in a row you can have. Suppose you have 30 % accuracy, the odds of your trade being a loss = 1 - .3 = .7 What are the odds of 10 losses in a row .7^10 and so forth. That should get you going. Those answers will tell you how much you need. PS: Edited to give you a starting hand.
Do a test of at least a few hundred trades and check: how many losing trades how many losing trades in a row size of loss in a trade max drawdown ( is not the same as number of consecutive losses!) This should give you an idea of the risk you have. The number of trades tested should be statistically representative. For daytrading 3000$ is in general already a lot of money, but it al depends of your system. I don't believe in statistical calculations of losses like proposed by Scaleout Scalper, because to me the only correct calculation is based on the specifics of your system.
Opinion of a crazy man Its profits so free money you dont mind risking, i will assume youve done some demo trades, few days will do, who has the time honestly for 100 demo trades ? I say go for it, everything to gain, only 3k-margin level so 2k to lose. Upside 100k downside 2k no brainer lol
Somebody who takes trading serious. And even free money is not a reason to gamble. Purpose is to make money, not to throw it out because it was "free" money.
I think I will, I just want to make sure I'm capitalized beyond the 100% risk of ruin threshold when I do.
No, you have to accept risk, demo trades are never the same as live real money trades. I jumped in, did the same and its paying off nicely for me, despite all the worry no balls people.
I would prefer to go in with the smallest account you can open, limits your losses, always add more later. Demo till bored. Over to live, lose a little most likely. Take a break, think on it. Repeat above, until you stop losing a little. Simple.
I have close to a year of experience day trading the ES and a lot more backtesting, so I'm not completely green. But I find that it's easier to be motivated if there's real money on the line. It's the same with my swing trade. I've followed the market, but it's not until I took on this real trade with real money that I got sucked back in.