Hello all the experienced traders,
I have started day trading for only one hour in the morning (as I do hold a full time job that ensures feeding me). I have started with 10k cash in IB (30k in margin) and I am NOT interested in swing or long term trading, I only do day trading for one hr/day.
Is it realistic expectation to earn 100-200$ per day with this kind of capital? I can add more money into broker account but I just feel its too risky for a newbie.
I know it all depends on personal capabilities and lot of other things but I want to hear how experienced traders performed in their initial stage. Any input is appreciated.
Hi, Tanvirmk,
Well, you are in a difficult situation - full time job elsewhere, and being "boxed into trading a specific product in 1 hour only" scenario.
I personally think you are setting yourself up for some major barriers to trading profitability. I certainly do not mean to suggest that you are not capable - or not willing to put in the hard work backtesting, etc.
However, it is important that you really open up your eyes and see the trading handcuffs and strait jacket that will affect your trading P/L. As you know, no matter how smart we may be, or experienced, or whatever else, the bottom line is that the P/L is the "evidence" of our trading reality - successful making money? Or losing money consistently?
Just a couple of points you raised with your designated boxed in trading "rules":
1. Your own "one hour" per day may mean absolutely nothing to the markets. You have only 60 mins to trade - and will trade regardless of good price action or not. Or you may feel inclined to jump in non-volatile periods, or during low volume. All are filled with potential dangers for turning into bad outcomes!
2. You seem to indicate a target of $X per day - and yet you do not appreciate that you literally will be forcing yourself to trade every day - whether appropriate or not.
3. You have not yet described what market(s) in that one hour you will trade. The S&P? The EURUSD? Individual stocks?
4. What are your backtesting data telling you? Is it profitable during that hourly interval every day during your backtest period? What is the avg profit ratio? Etc.
5. If you had to trade one hour per day - there are some high Edge hourly scenarios, like off the London opening price action for the EURUSD. Or during gap moves off earnings results in the stock marketplace. Or trading gold or financials or weekly options (had to throw that in for fun!) - off key news catalysts like the recent NFP we just had out.
I encourage you to explore the trading world and its potential for profits. However, unless you have backtested and you are fully aware of the limited bounds you have defined yourself to be in, there is a > 50% probability that your hard-earned $10k in the account will decline.
Trading is extremely challenging and at the same time its vastness and lack of bounds makes it a seductive profession (or hobby for some).
Try not to think of $X per day - instead, first find evidence, do the hard work, establish proof of a rigorous standard for yourself that your plan works!
You deserve the very best chance and planning - you already have desire and interest. But step up and do the hard work - test, backtest, and more test.
Finally - I encourage you to trade very small - esp with time/energy/mindset interference from your full time job! Try to find a 60-min zone that can mean something for the majority of the traders involved (first 60 mins after econ report for example).
Good luck - go get it done! I know there are many traders here at T2W that will cheer you on and help with your questions and problem-solving as best as possible!
Thanks.
WklyOptions
