The odds of day trading yourself to a profit are lower than you expect"

Discussion in 'Wall St. News' started by lawrence-lugar, Aug 19, 2016.

  1. d08

    d08

    Can't tell if you're being sarcastic or not. $1500 per day on $50k is $378k, if you compound it then it's a whole lot more. That would put them well in the top 1% of traders.
     
    #61     Aug 21, 2016
    Xela and Mtrader like this.
  2. My guess is weekly options.
     
    #62     Aug 21, 2016
    JesseJamesFinn1 likes this.

  3. Yes, I've had my fair share of getting stupid with weekly options because their so enticing to make large sums on little bucks. Someone can get mesmerized looking at DE's Weeklies that were trading at $.18x$.25 and ended up at $6.00 and higher on certain strikes. Apple and Facebook have made a few people very rich while others get crushed, good answer!
     
    #63     Aug 21, 2016
    vanzandt likes this.
  4. lovethetrade

    lovethetrade Guest

    How many ES contracts can one trade at any point in time with a $50k account?
     
    #64     Aug 22, 2016
  5. Mtrader

    Mtrader

    Theoretically there are offers starting at $300 margin per contract. But commissions will be much higher.

    Reality is depending of many things, a few of them:
    • mostly $500 minimum for small size
    • mostly $1000 minimum for medium size, like 100 contracts
    • brokers want to see your performance before you can trade size and low margins
    But even these margins are very dangerous. Except if you are really good and have proof of that. So, thinking you are good, and that's what most people do, is not valid.
     
    #65     Aug 22, 2016
  6. lovethetrade

    lovethetrade Guest

    OK, how many ES contracts do you think a discretionary trader in the top 10% in the world could trade with a $50k account, 5 contracts?

    To cut to the chase, I reckon this trader can

    1. trade up to 5 contracts
    2. achieve a net profit of 24 ticks per day.

    5 x 24 x 12.5 = $1500

    Maybe i'm being a touch unrealistic but I dont think im too far away.
     
    Last edited by a moderator: Aug 22, 2016
    #66     Aug 22, 2016
  7. Mtrader

    Mtrader

    A really good trader can do easily more than 10 contracts. But now the bashers will start to react so I will not tell how many he can trade exactly. Depends of the stats of his trackrecord.
     
    #67     Aug 22, 2016
  8. birzos

    birzos

    http://www.marketwatch.com/story/almost-no-one-can-beat-the-market-2013-10-25

    "Fewer than 1% of mutual fund managers persistently beat the market based on superior market-timing or stock-picking skills."

    "found that only about 1% of active traders outperformed the market. The more frequently people trade, the worse they do,"

    For 99% buying an index etf is more profitable and saves one hell of a lot of time but as Scott Adams said "Nothing defines humans better than their willingness to do irrational things in the pursuit of phenomenally unlikely payoffs. This is the principle behind lotteries, dating, and religion."!
     
    #68     Aug 22, 2016
  9. d08

    d08

    Religion doesn't have a payoff. With lotteries you cannot influence it at all, with trading it's what you make of it.
    Most businesses fail, so we shouldn't ever be entrepreneurs?
     
    #69     Aug 22, 2016
    Xela likes this.
  10. Mtrader

    Mtrader

    veQUOTE="birzos, post: 4320739, member: 493411"] "Nothing defines humans better than their willingness to do irrational things in the pursuit of phenomenally unlikely payoffs. This is the principle behind lotteries, dating, and religion."![/QUOTE]


    And that is exactly what you should change. Reprogram your brain. The human brains in not fitted for trading. Most people has, conscious or not, a form of self destructive behavior. That kills a lot of opportunities.
    Instead of saying: Just do it! They say: Don't do it!
     
    #70     Aug 22, 2016