Hi F, you (or anyone else) is very welcome to post in this thread.
Thank you for your kind words, and let me answer your question regarding profits by way of example...
- Let's say a hypothetical day-trader averaged 25 pips/day after costs. Let's also say he traded an average position size of 3 lots ($300k notional). That trader is averaging $750/day.
- Obviously there are varying days one can't trade (holidays, illness, other commitments) but let's keep it simple and say there are 220 trading days for this trader in a calendar year.
- Finally, lets say this trader has a £50k trading account.
- This trader is making $165k pa gross
- Convert to sterling @1.6, gives us: £103k gross
- Tax (w/ expenses) is about £35k, gives us: ~£68k net
So a 136% return pa, or about 11% return pcm.
Also, in many cases, some of the above figures would be considered optimistic and thus returns lower still.
Hi DJ
With regards to your example figures for the hypothetical day trader with the £50k - or approx $81k
I would agree on approx 220 days - in fact last year with my holidays I did not make even 200 days - and really its only like 11 months at an average 19 /20 days per month so fair.
I would only expect to have less than 5% losing days per year - but lets look at 10% losing days as a fairer view
With $81k on 1 % and say stops at 5- 7 pips max - then that's still up to 11 full lots per pip - or up to $115 pp and on 0.5% stake ( low but safe ) then 5 full lots.
My targets are now 50 pips per day - but for years it was under 30 pips and I reckon 40 pips per day - ie 200 per week is not out of the range of any decent consistent intraday trader.
So 20 day month - 10% - 2 losing days - ie lets say down 30 pip then thats really 6 x 0.5 = 3% losses per day or on 2 days - 6% total
Now on the 18 winning days - a low day under 40 pips - lets say 25 pips is really worth 5 x 0.5% = 2,5% and a good day will be over 70 pips which is say not 14 but just 11 x 0.5% = 5.5% - so mean average = ( 2.5 + 5.5 ) = 8 divided by 2 = 4%
18 days times 4% = 72% minus 2 bad days at 6% - net 66% - or net average just over 3% per day - which is not that unreasonable on short term intraday with tight stops.
As you might know I am trying to assist Major Magnum - who had 2 yrs prior experience of harmonics and pitchforks - but had not scalped up to 3 -4 months ago
Last week - only using 1% of his capital on stakes he had one day with a 13% gain and another with 10% - ( only demo - but give him 2 - 4 more months he well be doing that live on normal retail size accounts ) ( records available and shown already on other thread)
He's managing to keep his stops under 7 pips and even getting down to 3 - 4 pip stops - so his timing is improving - but he has still not done the multi thousands of live scalps like we have.
I do think without the help from me - he would need another 2 yrs plus scalping full time to get to a good level - thousands of hrs watching paint dry and working out whats going on - and even then - he still might not get there. He deserves it though as he's put the study in and will work his butt off to get there
So back to the figures 66% per month with 2 losing days might be pushing it on only 0.5% stake sizes - but it is possible on accounts under a quarter of a million dollars - as long as you don't try and compound heavily every month
30 -50% is more achievable per month and I have found that yes - I can struggle to achieve 25% some months - but then others 70% is on without going silly.
Per year that's 300 - 500% - which sound ridiculous compared to the commercial world - but its a different ball game - we have leverage - freedom and so much choice without the big pressure
I have found that by reducing my EU intraday trades and concentrating more on the EJ''s and the GU's and EA's - I am drastically improving my results- but realise that's because I have the experience and skill - and if I tried to have done it 4 yrs ago - I might have ended up with a load more losses and going off course down a slippery slope.
$81k x say 4 = $324 - $240k gross - £147k - and after tax ( get some tax free speadbetting in UK ) is £85 - 90K after tax - not bad for 40 hrs a week - with no weekend work (lol)
Have a good February DJ - but I am sure you will
Regards
F
