After you consistently making 1K /day, if you just 5X it and 5K/day is one million a year. Keep it consistent and you are all set. After that imagine you upgrade the size each year in the next 5 years. Key is consistency.
Yeah, this is what I realized too. I wasted a few years trying to trade index futures with very mixed and net negative results. But now that I'm better overall at trading in general(better risk management, better price action reading, etc.) I think I can do well in index futures trading too. But I'm focusing on stocks and options since there's only so much bandwidth. Also as you've said, index doesn't trend all the time, but there's always some stocks that is trending! That's what I've realized...
Yep. That's the goal! Just need to keep it consistent and gradually scale up. In the deepest of my hearts, I believe I can consistently do 5K-10K a day. This feels very reasonable and doable with my current skillsets but with more scaling. A year ago not. But I'm much better now. I need to get the consistency down with 1K-2K a day before I scale up. Also, need to ELIMINATE the bad trades with low odds, bad risks. If I just trade my best setups and most confident trades then I'll be fine.
I really don't know if there is a recipe that applies to all classes. It would be my holy grail if I can find a recipe to do it. I stared at charts a lot since 2013 and for those equities (charts) I stared at, they each seemed to have their own idiosyncrasies. So, I focused on about 10-15 equities and exclusively trade their options.
https://www.forbes.com/sites/bretts...t-lesson-from-the-trading-world/#70f82e433f5a Make consistent profits. Keep low risk. And for the right opportunities, go for the jugular with 10x. That's the key.
So from Oct 2018 to Jan 2019 I had an incredible run! Not that the run was luck. It was based on sound methodologies based on setups I know works well. Feb and Mar were horrible months for me. But Feb & Mar were horrible because of a long time bad habits that I knew will one day bite me in the ass if I don't solve them. But the nice run allowed me to ignore the bad habits. Then the bad habits caught up with me. The bad habit I'm talking about is countertrend trading. It has haunted me for years. Not sure why my psychology around that is so wronged. But I've fixed it now. I had to stop trading. Went back to sim and practice and practice and practice and I think I got rid of really bad habits once for all. I practiced and practiced and practiced until it became automatic. Meaning the patterns that triggered those bad habits in Feb and Mar now triggere the right behaviors for me. Process is more important than $. Once you have the right process money comes easily. So this week I got back to my real account. I want to make sure I can behave in the right way. This morning made $1.3K in 1min. Had a waited longer it would have be $5K+. Yesterday the same. I will keep doing and cementing these good habits and get the $1K+/day habit down. Then it's just a matter of scaling it up. I want to make $5K/day a regular habit. I hated that I had to go through these deep drawdowns to get rid of bad habits each time. That's why I'm glad I'm working and only doing this on the side. LOL.
the best narket to trade will always be the one that poses the least risk to your money..whilst volatility can make you money very quickly..unless you are disciplined and experienced..then it can lose you much more than you make even quicker..how do I know this..cause been there and done that certain stocks like AAPL are ok for daytrading..but only if the correct strikes are chosen..but you already know this if you are daytrading options!
trader99, Thanks for the follow up. Your comments are very true sir. I just experienced the same thing last month after a good run of profits. The same happen to me in March, I thought I was ready for live, and ended up losing money, because I did not have my mental and proper plan as well as I thought I did. Certain market conditions will make you think bad habits are good habits. So now I am back to sim and practicing and practicing and working on my phycology frame of thinking and trade management One bad/concern I habit (and I honestly struggle with it in sim as well) , that has been beating me up and causing all types of issues is : Taking profits at logical locations and stop worrying about making more profits. I would go into this, as @wrbtrader, calls it Sheriff Hindsight Analysis. "what if I did this, my risk greater than my reward, i wish I had held longer for more profit, ughhhh, why did I not just exit. I had to face this problem head on and be responsible for correcting. See post #19, @wrbtrader writes a beatiful post. https://www.elitetrader.com/et/thre...king-for-solutions.331240/page-2#post-4832956 I applaud you for taking the time to stop trading and fix the problem in your trading business.