Hello Handle123, Very great comments. This will require 100% win rate month to month. A loss will come. A lot of clicking per day is needed to grow a small account to a big account, depending on R-R and win rate.
You joined ET the same year as I. I am still a struggling day trader. You made your millions in less than 2 years, back in 2018?
Using the same logic, instead of buying my truck, a lawn mower, mowing lawns, I go get a job at McDonald's make $20 an hour, $3200 a month working 5 8-hour days a week. No equipments to buy, my ROI, return on capital, is infinite. You can't beat that.
Isn't O.P. the same person who weeks ago was advising people to never close a losing position. Now he's crunching the numbers for a Lawn mowing business. Correlation, Causation???
So that's another good baseline ..So if you saved up 25k which is a good benchmark to trade can you make more than $3200 per mo the trading with I'm testing a system prior to scaling up. I don't think you guys realize that the majority of you... especially day traders could make more money mowing lawns or working at McDonald's.
which means that most of Wall street would be better off mowing lawns since how many funds or traders or investors are there that earn 9.6% [2400] per month...consistently month after month after month. most of the financial industry and Wall street is therefore living hoping and waiting for a dream to come true. best of luck guys
IMHO, you have a good head on your shoulder because you are constantly thinking and looking at different angles. You just need to connect all the dots and come up with an integrated view. Here is one: The reason mowing lawn is better than working at McDonald's is the possibility of leverage and compounding, growing your business. If you don't do that, working at McDonald's getting a steady paycheck is better. On the flip side, if I work at McDonald's but invest my $24K, or use my $24K to trade, compounding my returns, over a long period, I can also be very rich. The key is not to waste the $24K on a Lambo. I chose the second path and retired early. Most professionals on Wall Street trading OPM are no different unless they founded the fund. Why? Risk adjusted return is higher for workers who know how to invest/trade. This is why full time trading, even if you can achieve 9.6% return/mo is not the way to go: You cannot compound, you spend all your profits as living expenses, whereas with both the other paths you can compound your profits. Compounding is what makes us rich.
Exactly! We should all be getting our lawns mowed by wall street. Why would you close a losing position! That makes no sense. I would rather average down my cost and increase my future profits. If you bought the stock in the first place you basically said "yeah this is a good price to own shares". If it drops you have a chance to own more shares for even less. Your retail logic is backwards ..when you shop do you run out of the store if your favorite item is in sale? Retail in trading are notorious for buying into hype...same happens in real estate. Averaging down and holding a loss for a year and a half = 2008 Lambo. If I was like you guys I would have been stopped out and patted myself on the back about it lol.
This is 100% the mindset and approach. Most here don't think in these terms. Your typical ET member's thoughts are stuck in terms of ROI, which is both self-limiting and self-defeating. You don't need $25K, and you don't even need $3K. For less than $200 you could find a "prop firm" to give you a $2K drawdown. Trade the prop account until you are maxed out with respect to contract size, then take the money, fund your own account, and keep it growing through compounding. I see the two "prop firms" that used to be ET sponsors are no longer sponsors. I wonder why that is?
Why would I want to trade at a prop firm and have people who know nothing about trading manage my risk?