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. Xela

    Xela


    You make it sound almost realistic, but I think you may be a little further away, to be honest.

    I don't believe that a "top 10% retail trader" is really going to trade 5 contracts of ES regularly with $50k capital - much more like 2-3, perhaps.

    And I don't think he's going to take 6 points per day off ES, averaged out over the month, either. Less than that, on average, allowing for the reality that he's going to have some losing days, too.

    These two factors, compounded together, actually make your estimate a significant exaggeration. In my opinion.

    I honestly think about a quarter of your figure is much nearer the mark.
     
    #71     Aug 22, 2016
    d08 likes this.
  2. d08

    d08

    With compounding at 3% per day ($1500) $50k turns to $86 million end of year. So, yeah, that number is a "little optimistic".
     
    #72     Aug 22, 2016
    Xela likes this.
  3. Buy1Sell2

    Buy1Sell2

    It's much higher than that.
     
    #73     Aug 22, 2016
  4. Mtrader

    Mtrader

    I made a quick simulation with the ES. Very quickly you would have to take already positions over 10,000 contracts ES at each trade. So indeed "optimistic", but at the same time proof that you cannot own the whole world as there will be financial limits. So this always repeated remark from the bashers is false.
     
    Last edited: Aug 22, 2016
    #74     Aug 22, 2016
  5. d08

    d08

    With ES 10,000 contracts isn't unrealistic unless you're scalping, you might take some slippage but you won't lift the whole market. The liquidity really is incredible.
     
    #75     Aug 22, 2016
    Cacophonie likes this.
  6. Mtrader

    Mtrader

    OK then , let's go for $100 million! :strong:
     
    #76     Aug 22, 2016
  7. Today POC is currently 42K contracts.
    & 144K contracts exchanged within 2175.
    Usually, You could easily lift 10K within 4 ticks.
     
    #77     Aug 22, 2016
  8. Cswim63

    Cswim63

    The odds of someone doing laps in Black Creek with me this afternoon are pretty low. Actually, no one has done it besides me this summer, as far as I know. Maybe someone from the Whys guys and the Explainers can figure out a reason and entertain us all.
     
    #78     Aug 22, 2016
  9. qxr1011

    qxr1011

    those odds are calculated based on statistics with the assumption that all people are the same in their abilities and starting points...

    the day trader operates on the assumption that he is quite unique

    when his assumptions is correct his odds are quite different
     
    #79     Aug 22, 2016
    Cacophonie, d08 and Cswim63 like this.
  10. Cswim63

    Cswim63

    I wonder if anyone has taught children to trade?
     
    #80     Aug 22, 2016