Is it easy to gain 1% profit every day for professional trader?

[FXTrend240]

yep, 20-30% consistently with small drawdown and wahey you've suddenly got hundreds of millions under management...

 

[GladiatorX]

If you want to be a good trader;
Consider first whether you actually have the right stuff -
1. Consistant discpline (this cannot be gained...)
2. In gambling, total control over ones actions.
3. An understanding that to win in the markets you need to have an entry and exit strategy based around a real market understanding of its participants, and structure - rather than false strategies based on randomness and hope
4. Are you ready to work hard to understand the industry and try to find evidence-based reasons to take trades

If you have this... You can move to the next phase
1. Learn about the markets (supply/demand, what makes a market move (not opinion, the facts)
2. Learn about the market structure (exchanges, how they work, institutional banks etc)
3. Learn about the market participants (Commerical traders, specialists, ECN liquidity providers, retailers)

If you understand all this you can start to formulate strategies based on your understanding...
1. By now you should understand that the market does not have a factual variable that can be used in advance to know the markets future precise location and therefore money management is neccesary in maintaining ones account balance when using leverage, whereas without leverage one can do with slight diversification and money management through not being over exposed to any particular situation ... So that comes naturally - You shouldn't have to learn that, anybody that does simply does not have the right understanding of the market yet
2. You already have the correct psychology if your going to do well; you can start to focus on perfecting your already stable psychology through making sure that you have outlined how you wish to behave while trading before hand
3. Formulate strategy based on your understanding that has a theoretical reason for working, with some factual backdrop to support.

Then you should be ready to do some proper, probability and discplined trading, without the ingrediants of hope.

Day trading isn't about searching for a strategy on google, finding that people trade S/R and then trying to copy... Its about understanding the exchange and then looking at ways of knowing how the supply/demand is going to occur.

For example; Support -
I had this conversation the other day so its fresh in my mind...

Well - Why would buying at this particular support be a good idea ?

Is it because i've read in a book that the author buys these horizontal charts; or because i understand the structure and participants actions that might be caused by the location of support.


Most people are not good enough and are not willing to do the above; instead they spend time looking in books and reading articles to SKIP the understanding and just find the entry and exit rules - Because they're lazy, not very clever and worn-out - And thats not a bad thing, in fact the majority of people are like that, so its likely you are too... But if your not; Go for it; because its 98% certainty that you'll win if you aren't one of those people.

These people will think they know what it takes to be a good trader, they will have all sorts of excuses - Ranging from money management to psychology to getting fake signals - The reality is that these people haven't taken the first step in moving towards looking at the market in a non-random way.... And they believe that their perception and interpretation of it is not random because they look at the past charts and think that they could of WON IT... but their understandings are so limited, the market may aswell actually be random to them.


Hopefully you don't skip my words and do take them seriously...

We'll see.

Alot of people will disagree with me i'm sure; but this is from experience from someone who trades DMA futures & stock through day trading and swing trading succesfully, if that means anything.



Just do add;

A basic example of people trading based on false understanding.

Someone said to me earlier that they were going long earlier because they believed a lot of short covering would occur .... I looked at the stocks short float and it was about 0.5% ... Now, that makes the short covering pretty insignificant and certainty not a big variable on that market, particularly as they all wouldn't of been watching.
So this guys reason for entry; was actually based on, well may aswell have been that 'I go long when i don't feel well'... His price may aswell be random.

I won't name names... (Robster)

I want to conclude by telling you that doing all this doesn't take that long; particularly if its dedicated and focused ... Most people will tell you it takes years; thats only because they spend 2-3 years avoiding learning and understanding the markets and then three months ACTUALLY learning... So it doesn't take too long to learn to trade IMO as long as you have the right attitude at the start.... Most people will spend months for example backtesting/demo testing/ trading something that actually has no sound reason for why its a good idea for example... If you skip that sort of thing; i'd imagine that you could be a good knowledgable trading within 2-6 months.


P.s. Gaining experience based on watching price action can be completely skipped if you just think of WHY a particular price action situation might guage clues as to future supply and demand.....
Rather than watch the setup and 'improve' your execution of it; just consider WHY its a good idea to trade it and WHAT CONTEXT AND SITUATIONS would increase its probability based on your other understandings; and you literally won't be able to get any better at trading it. Everyone elses replaces that understanding with the hope that 'experience' will replace it.

 

[UKYorkie]

Hi If you spend time and yes several years watching and learning price action on charts then anything can be done and of course its well easier to double a £100 account than it is a £100,000 account, I personally after 3 years of bloody hard work will make 20-30% on my account every month, I reset it at the start of every month back to my starting capital, of £5K as I like to keep my cash safe away from my trading account, but its only as second income for me at the moment if it was my only souce of income and the stakes were higher could I do the same, who knows?

 

[HawkTrader]

If you want to be a good trader;
Consider first whether you actually have the right stuff -
1. Consistant discpline (this cannot be gained...)
2. In gambling, total control over ones actions.
3. An understanding that to win in the markets you need to have an entry and exit strategy based around a real market understanding of its participants, and structure - rather than false strategies based on randomness and hope
4. Are you ready to work hard to understand the industry and try to find evidence-based reasons to take trades

If you have this... You can move to the next phase
1. Learn about the markets (supply/demand, what makes a market move (not opinion, the facts)
2. Learn about the market structure (exchanges, how they work, institutional banks etc)
3. Learn about the market participants (Commerical traders, specialists, ECN liquidity providers, retailers)

If you understand all this you can start to formulate strategies based on your understanding...
1. By now you should understand that the market does not have a factual variable that can be used in advance to know the markets future precise location and therefore money management is neccesary in maintaining ones account balance when using leverage, whereas without leverage one can do with slight diversification and money management through not being over exposed to any particular situation ... So that comes naturally - You shouldn't have to learn that, anybody that does simply does not have the right understanding of the market yet
2. You already have the correct psychology if your going to do well; you can start to focus on perfecting your already stable psychology through making sure that you have outlined how you wish to behave while trading before hand
3. Formulate strategy based on your understanding that has a theoretical reason for working, with some factual backdrop to support.

Then you should be ready to do some proper, probability and discplined trading, without the ingrediants of hope.

Day trading isn't about searching for a strategy on google, finding that people trade S/R and then trying to copy... Its about understanding the exchange and then looking at ways of knowing how the supply/demand is going to occur.

For example; Support -
I had this conversation the other day so its fresh in my mind...

Well - Why would buying at this particular support be a good idea ?

Is it because i've read in a book that the author buys these horizontal charts; or because i understand the structure and participants actions that might be caused by the location of support.


Most people are not good enough and are not willing to do the above; instead they spend time looking in books and reading articles to SKIP the understanding and just find the entry and exit rules - Because they're lazy, not very clever and worn-out - And thats not a bad thing, in fact the majority of people are like that, so its likely you are too... But if your not; Go for it; because its 98% certainty that you'll win if you aren't one of those people.

These people will think they know what it takes to be a good trader, they will have all sorts of excuses - Ranging from money management to psychology to getting fake signals - The reality is that these people haven't taken the first step in moving towards looking at the market in a non-random way.... And they believe that their perception and interpretation of it is not random because they look at the past charts and think that they could of WON IT... but their understandings are so limited, the market may aswell actually be random to them.


Hopefully you don't skip my words and do take them seriously...

We'll see.

Alot of people will disagree with me i'm sure; but this is from experience from someone who trades DMA futures & stock through day trading and swing trading succesfully, if that means anything.

Excellent post, although how would you suggest for a newbie to learn of these things if you are saying most books skip the important info?

 

[UKYorkie]

All I could suggest to a newbie, is dont put your cash on the line, dont believe in any software to show you how to trade, etc. Spend as much screen time watching the markets and just try and work out in advance what is going to happen to the price, learn basic support and resistance, ranges, and price action, do that till you are confident then start a small account £100 or so and trade £1 a pip and learn and learn some more. Only way to be succesfull in this game is to put your time and effort into it, Print out a daily chart of your chosen markets and identify what trades would have made money and over time you will find they repeat over and over again.

Just dont loose your cash before you work out what works for you as no 2 traders are the same!

 

[Black Swan]

"Is it easy to gain 1% profit every day for a professional trader?"

Easy no, however, it's achievable for a totally *dedicated* professional trader. £1,000 return per day on £100K in an account, £500 on £50K, is a reasonable target IMO. In fact is it actually a good return on capital employed, or are we blinded by the return on investment myth that actually has little to do with trading my discipline - forex and more to do with day trading shares...

Do you need £50K to make £500+ average per day? I don't...

 

[FXTrend240]

i agree with what gladiator said, it's why i don't recommend learning pin bars of a thread-you didn't learn them, you stole them from somebody who did learn them.

I've spent about a year dossing about to be honest, well, the last 3-4 months has been the only real 'learning' in forex . As of now im learning economics in forex and how to apply their trend-shifting affect into my 'trading'

 

[sun_wants]

Don't worry about the profit and instead think about preserving capital. Limit your risks, take only the best opportunities, manage your trades and the profits will be sure to follow.

The trick is in 'limiting your risks, taking only the best opportunities and managing your trades!' if you can stick to that then making money in the markets is indeed possible. However, 1% daily if truly tested over a large number of 'experienced' traders accounts will soon show that the best make much less than that.

 

[ccclarette658]

Hi ipoppy,
If you're new to trading, think small - think very small. Dr. Alexander Elder in his book 'Welcome to my Trading Room' advises a goal of breaking even in your first year. Trust me when I say that if you achieve this, you're doing better than most newbies. Year two, aim to equal or better the return you'd get from a basic bank or building society deposit account. Year three, aim for a multiple of two times (or more) the bank / BS rate. Apologies if that's not the answer you wanted or expected, but it's probably more realistic than thinking in terms of 1% per day. Of course it can be done and, doubtless, there will be those who will claim to make much more than this having only been trading a few months!

Tim.

Honestly timsk, why do you persist in trying to dumb down as much as possible any newbie who starts posting here? I have explained to you several times that what you are doing is intellectually dishonest and promotes mediocrity. Dr Elder...please. It is a lot of work for me to come on here to correct your statements every time you try to convince someone to aspire to breaking even.

This is a business. Nobody is interested in breaking even. Those who cannot make consistent profits should not be trading until they can.

What is this "building society rate" nonsense? Are you saying that the profits you make in the market are limited to multiples of the base rate and you should adjust your goals accordingly? A new trader who has been trading for three years should expect to make 12% pa in 2007 but only 4% pa in 2010?

And why round off your post with the sly implication that while it can be done, people who claim they can are probably dishonest?

 

[ccclarette658]

Fair point Ross.
I guess I'm a 'my glass is half empty' kind of guy! I'd rather start small and build on my successes than aim high and fail. Horses for courses I suppose.
Tim.

Yes, you limit your potential as you are frightened of what you consider to be "failure". Therefore you never challenge yourself and "aim high" - the possible consequences put you off.

Everyone is entitled to make their own choices in this regard. Please do not impose your limitations on others by advising them to "think small".

 

[everyonerich]

Hi everyonerich,
I do hope you suffered from fat finger syndrome when typing your post and it meant to kick off with a big bold Don't at the start? If, by chance, it's deliberate, then it's worth pointing out to the OP that your view is extremely controversial and, if taken literally, is potentially deadly to his P&L.

Tim.

maybe i didnt make myself clear.. i mean new traders suppose to put more effort in finding 'edge' from the market, because when you got the 'edge' you can calculate how many risk you willing to take.. for eg: if stoploss is 100 pips, its up to the trader whether want to risk 1 - 5% or even more on particular trade.

money management is static & calculate-able, 'edge' is not!

 

[timsk]

Honestly timsk, why do you persist in trying to dumb down as much as possible any newbie who starts posting here? I have explained to you several times that what you are doing is intellectually dishonest and promotes mediocrity. Dr Elder...please. It is a lot of work for me to come on here to correct your statements every time you try to convince someone to aspire to breaking even.

This is a business. Nobody is interested in breaking even. Those who cannot make consistent profits should not be trading until they can.

What is this "building society rate" nonsense? Are you saying that the profits you make in the market are limited to multiples of the base rate and you should adjust your goals accordingly? A new trader who has been trading for three years should expect to make 12% pa in 2007 but only 4% pa in 2010?

And why round off your post with the sly implication that while it can be done, people who claim they can are probably dishonest?

The pot calling the kettle black, intellectual dishonesty indeed! I'm perfectly entitled to my views as you are yours. And you're welcome to express a view contrary to mine and say why you think I'm wrong, but why oh why can't you do it politely and courteously? (For an example, see Rossini's posts in this very thread.) You really ought to have learnt by now that the arrogant and patronizing tone of many of your posts does you a great disservice and frequently obscures the message at the heart of them. Suffice it to say, I won't explain this to you again, once is quite enough.
Tim.

 

[timsk]

Yes, you limit your potential as you are frightened of what you consider to be "failure". Therefore you never challenge yourself and "aim high" - the possible consequences put you off.

Everyone is entitled to make their own choices in this regard. Please do not impose your limitations on others by advising them to "think small".

I never impose anything on anybody. Never have, never will!

 

[DionysusToast]

Making $300 per day from a $30,000 account day trading US equities is very possible, although 'easy' isn't the first word that comes to mind because if you were told how to do it today, it may be months before you actually managed to do it.

Of course, that is not quite the same as making 1% a day, every day - unless you take the $300 out of the trading account at the end of every day.

 

[Xeno]

Well I can say with 100% confidence that some people can do it, and, what you're really asking, with 1% confidence, possibly less, that you can do it. That's not to put you down, it's just that you're asking the wrong question.

The measure of what you can achieve is what testing of your method tells you you can achieve. It's irrelevant what other people can do since you're not them and if they're profitable you're extremely unlikely to end up with their identical method anyway.

 

[jansher21]

Once again, I totally reinforce Timsk's comments. Although I am certain he does not need anyone's support.

This is not about dumbing down anyone's hopes or aspirations - it is about laying the foundations to allow people to succeed.

Yes, it is possible to make fantastic returns - but it is not easy. Statistically speaking, something like 90% of traders are wiped out inside six months of opening their account. The brokers know this and will help you to empty your accounts with great pleasure.

There is no doubt that some people are naturally gifted and talented to such an extent, that they are able to flourish. Those guys most likely will not find themselves spending too much time on forums here.

Generally speaking, it is a target - not to lose money in the first year. If you are able to achieve this and happen to make 100% - then fantastic.

In the end, its results that count. I think it's great when we can share how we made money and try and help those who aren't.

The pot calling the kettle black, intellectual dishonesty indeed! I'm perfectly entitled to my views as you are yours. And you're welcome to express a view contrary to mine and say why you think I'm wrong, but why oh why can't you do it politely and courteously? (For an example, see Rossini's posts in this very thread.) You really ought to have learnt by now that the arrogant and patronizing tone of many of your posts does you a great disservice and frequently obscures the message at the heart of them. Suffice it to say, I won't explain this to you again, once is quite enough.
Tim.

 

[montmorencyt2w]

I never impose anything on anybody. Never have, never will!

Unlike those people who tie their students to chairs and put paper bags over their heads....

 

[montmorencyt2w]

Making $300 per day from a $30,000 account day trading US equities is very possible, although 'easy' isn't the first word that comes to mind because if you were told how to do it today, it may be months before you actually managed to do it.

Of course, that is not quite the same as making 1% a day, every day - unless you take the $300 out of the trading account at the end of every day.

Yes, the question could be re-phrased as "can you make a consistent 1% per day while compounding" and I'd guess that this becomes increasingly difficult for all sorts of reasons as the account size increases.

 

[DionysusToast]

Yes, the question could be re-phrased as "can you make a consistent 1% per day while compounding" and I'd guess that this becomes increasingly difficult for all sorts of reasons as the account size increases.

Well - that's a different kettle of fish entirely...

 

[zupcon]

Unlike those people who tie their students to chairs and put paper bags over their heads....

Its a reasonable way of dealing with dunces. When I was a very young, we where routinely punished by teachers. I (and most other kids in my class) where picked up, held by the feet and had our head banged against the floor. I and others, when disruptive where required to stand in silence in a corridor outside of the classroom, with our hands clamped in a woodwork vice !

Someone in the class would be hit with a cane, beaten with a slipper, or slapped about by teachers on practically a daily basis. Kids where required to wear a dunces hat, and stand in a corner.

Whilst I cant actually recall anyone being placed in a cupboard, tied to a chair, or having a bag placed over their head, I'm pretty sure it went on in some of the rougher schools.

This sort of treatment does no harm to kids, but I suppose that I'm slightly uneasy about extending the practice to adults. I'm not particularly critical of Mr Socco, for employing such methods, particularly if he believes that they may have effective, but I am critical of those who would subject themselves to such treatment.

I'm critical for a number of reasons a) that they where such dunces that they needed to be treated in this way, b) that they where so desperate that they would happily subject themselves to such humiliation in the hope that they'd be granted easy access to information that's already available to them should they wish to do the work.

I've said it before, and I'll say it again, I would have happily paid 5K to watch a room full of adults being treated in this way, and should Mr Socco ever wish to repeat the experiment, I'll be at the head of the queue to buy a ticket.