IMO the OP's goal is making 3K/mo with 6K initial capital. Not making 50% a month. That is a different ball game, arithmetic versus exponential returns. Some of you should learn the difference. Actually the goal is one of making 1,200% a year or making a decent salary of $36,000/yr using 6K of capital. The question is: is this possible? The answer is, given the long tails of trader returns everything is possible. Somewhere, someplace, someone is able to do that, even for extended periods of time. The problem is, you, or anyone else, has very low probability to become that person, although someone will at the end. It is like winning the lottery. Practically speaking, my experience says there are not enough setups to provide a return of 50% on 6K each month. One can apply a non-scalable trading methodology, something that some who responded did not realize. For example, buying ATM option is one strategy but the timing must be impeccable. This strategy is not scalable but the timing it requires to make 50% is beyond the capabilities of even the best psychics. We are not talking about trading systems any longer.
Actually, you should be looking for consistent monthly gains, it's just that the amplitude of your projected gains is way out of reasonable bounds. If you can make 4% average monthly return consistently, with low variability (let's say +/- 1%), month after month for 5 years, you will become a star in the trading world. In fact, that kind of performance would beat the performance of virtually all mutual funds, hedge funds, managed accounts, institutional traders, and individual traders alike.
Over the years I have developed an automatic trading system that have 100% return in each month. It is a x-code program that will run in all window based pc and will directly connected to your broker platform. The system will pick the right strategy for you every month and do all the entry/exit automatically, which mean you virtually do nothing except your have to count the money you make every month. For the limited time, i will sell this system to you as $2999. This mean you still have $3001 leave after you purchased this system. And you can make $3001 each month based on the 100% return ($1 better than your 3K target). The reason I am selling this system is that because i have make too much money for the past few years and money no longer important to me anymore, I just want to teach and give back, and i am glad to see the people like you success. Hurry !! this once life time offer will end 12pm tonight. This is the only route and opportunity to financial freedom in your life. p/s: I accept Paypal and major credit cards
OP, without opining on your chances of success and with the assumption that you are using risk capital that is expendable for you, no particular avenue will produce objectively better chances, aside from outright illegal activity, however, you should utilize a leveraged instrument for the highest gains. On the other side of the same coin, there is no objective measure for potential losses other than your own limits you have set for yourself. Good luck.
After reading the responses to this, it's fairly obvious that most of you are bitter traders who never made a dime in the markets. What a shame. Its sites like this that poison the minds of beginning traders that want to learn how to make money in this game. I'm not a professional trader. I have a day job in an unrelated field. Over the past 10+ years I've day traded the stock, options, futures and forex markets and estimate that I probably only barely broke even during that time. It was frustrating and I knew there had to be a way to be profitable. In August of last year I took my trading experience & knowledge of technical analysis and decided to work on a fully-automated trading system. I put in several hundred hours, & countless nights and weekends developing and testing my trading strategy on simulated accounts. By December, I knew I was on to something big. The back testing and walk-forward results showed that money was to be made on this. I continued running the strategy every day on a sim account and worked out a few bugs before starting trading on a real cash account. I also developed a methodology to make the system adaptive to changes in daily range and volume. On March 8th of this year, my account was funded and I let my system run, fully-automated using NinjaTrader. The system runs on a dedicated high-availability rack server that I lease from a hosting company. I have remote desktop access to the server from any internet connected PC or my Android smartphone. Accessing the server has never been an issue. My initial deposit was $4000. At the end March, my total P/L was +5,232.52 trading the S&P Midcap 400 futures and the DAX futures. My return was around 130%. I've attached a portion from my RCG March 2011 monthly statement showing this. To those of you who think this was modified in some way, I could go so far as to show you every single trade and transaction on my account, direct from the same monthly statement from RCG. Did I get lucky my first month? Not at all. I worked my ass off and put in a lot of time developing the system. I'm writing this not to brag, but to tell other traders out there to stop listening to the jaded losers who have nothing positive to share. It CAN be done! And I've never been happier.
10 years of break even, then one month of 130% on $4k- ok great, I don't think the guy wants to wait 10 years for that magical month.
Anyway you invest this I don't think you divide up the pie. I'd say go for the whole 6k as one trade. If you invest 2k 3 times probabilities of 3 trades to earn 50% are slim, or even 3k twice, still have to have two winners. Now if you put the whole 6k on one trade and suppose you had a 95/5 of being right to make %50, you still have the problem of drawdown. Now its a game of guts for 30 days. Suppose the 50% gain arrived in the last 5 day of your 30 trade. You'd have to agonize for 25 days of being wrong. Run a scan on equities that have increased %50 or more in the last 30 days, se if there is anything on the list that looks familiar, ditto with equities that declined %50 in the last 30 days. Point being, to nail %50 you may have to see a gain greater than %50 in the last thirty days because, no way will you get in at the bottom. Re Of course, I'd also like to know what are the potential losses with given strategy also. Ah ha !!! Ordinarily, shouldn't be too bad. You shift to what is known as a "buy and hold" strategy and consider yourself a longterm investor. Every dog has his day, and you might too.
for that account size, futures are your best bet open a futures account youll either lose all your money, or get that 50% my advice: don't be wrong