Realistic expectation for newbie

tanvirmk

Junior member
12 0
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.
 

peto

Established member
971 113
"I want to hear how experienced traders performed in their initial stage."
I had a few successes to encourage me, then lost the lot! Probably about normal then.

Trading is a zero-sum activity. The best win, taking the money from the rest. Are you sure you are the best?
 
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NVP

Legendary member
37,767 2,101
dont worry too much about HOW much you make ...................just try to NOT lose

N
 
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WklyOptions

Well-known member
269 24
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
 

lucas_king

Member
96 3
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.

You have started with £10k, so using leverage means it’s more than achievable. As you said though, it all depends on how successful you are at trading.

You could theoretically start with $200, and make $200 if that trade goes up 100%
 

Clovis Fish

Junior member
18 1
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.
There's no way to sensibly answer your question. You rightly acknowledge in your final paragraph dependencies on a whole cloud of unknowns, but the biggest reason it's unanswerable is that by limiting yourself to any one hour on any given day, you have no way of knowing what opportunities are going to present and which of those you will be able to finesse to completion within that period of time.

Get serious about daytrading and apply yourself to it or broaden your timeframe to allow you to develop your strategies until such time you can commit to full time trading - if that is your eventual aim.
 
G

Guest36985

0 0
"I want to hear how experienced traders performed in their initial stage."
I had a few successes to encourage me, then lost the lot! Probably about normal then.

Trading is a zero-sum activity. The best win, taking the money from the rest. Are you sure you are the best?

Trading is NOT a zero sum activity, new money is poured in every month to the tune of $Billions. It is possible for everyone to profit every month. Not everyone does though.
If your got a job that pays the bills go for 10 points per day, thats 200 points per month and keep all your profits. You'll be surprise how quickly it mounts up to the point you can quit your job.
If you cant do 10 points consistently youve picked the wrong trading method for you.

Good luck.
 

peto

Established member
971 113
Trading is NOT a zero sum activity, new money is poured in every month to the tune of $Billions. .
New money from new novice traders? You are correct it is not a zero sum game...when the bookies, brokers and market makers have had their cut it is a negative sum game. Your proposal for the OP to make 10 points consistently every day in the one hour he is trading is unbelievably unrealistic...or a joke!
 
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Guest36985

0 0
New money from new novice traders? You are correct it is not a zero sum game...when the bookies, brokers and market makers have had their cut it is a negative sum game. Your proposal for the OP to make 10 points consistently every day in the one hour he is trading is unbelievably unrealistic...or a joke!

Maybe YOU cant make 10 points in the first hour, but come and join us on the scalping the FTSE futures thread and we'll help you out.
http://www.trade2win.com/boards/indices/120172-anyone-scalping-ftse-futures.html
50 minutes in to trading and 3 people have made >25 points today.
We're a laugh a minute. :LOL:
 
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Guest36985

0 0
New money from new novice traders? You are correct it is not a zero sum game...when the bookies, brokers and market makers have had their cut it is a negative sum game. ...

Rather than clutter up this new chaps thread with a side discussion, you can continue it here if you like.
http://www.trade2win.com/boards/home-trader/184584-zero-sum-game.html
As I say on the thread, thinking it is anything but a positive sum game is just a losers mentality and T2W has some good articles on trading psychology.
 
 
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