FAQ Realistically, How much Money can I Expect to Make?

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Nikhil Dogra

Member
53 1
The OP got this one right >>> Don't focus on the $$$ and the $$$ will follow

Yes so true , earlier i had crazy expectations like daily i will earn 10k in a single day and such thinking results in more losses than gains unfortunately , the more we think about risk more we get rewarded for it. I will tell you the change for me personally from 10k "daily targets" i toned down to 625 which is more realistic and achievable on a daily basis. In a nutshell having realistic expectations is better for one's mind , body and soul.
 

Aesop20

Member
51 1
IF you solely focus on profits each day, and have a target.. and you meet it, there's a strong possibility you're not getting the most from the market. Potentially you could be missing out on more profits.
 

datav

Active member
230 9
IF you solely focus on profits each day, and have a target.. and you meet it, there's a strong possibility you're not getting the most from the market. Potentially you could be missing out on more profits.

This is the trap that all new traders (myself included) always fall for. The markets are unlimited and there is always an opportunity to make more profit. We humans cannot cope with this. We have to impose rules and structure on ourselves if we are to succeed in generating a profit in trading.
 

Nikhil Dogra

Member
53 1
Yes thats true after i reach my daily goals , i observe markets and if an opportunity comes one would be a idiot to not welcome it with open arms! What i meant to say was having realistic views is better than unrealistic views. In my case 10k was unrealistic , 625 is realistic however that does not mean i stop once i reach that goal. I am just simply highlighting that going home with 625 is better than 400 or a loss by holding on "too long" This business is an amazing balancing act , i feel Tightrope walking professionals might feel jealous with the amount of balancing act we as traders do! :LOL:
 

Aesop20

Member
51 1
What i meant to say was having realistic views is better than unrealistic views. In my case 10k was unrealistic , 625 is realistic however that does not mean i stop once i reach that goal. I am just simply highlighting that going home with 625 is better than 400 or a loss by holding on "too long" This business is an amazing balancing act , i feel Tightrope walking professionals might feel jealous with the amount of balancing act we as traders do! :LOL:

Yeah i'd agree and i think you've done the right thing to realise a more reaslistic target, one that you know you can meet, and possibly beat more often than not. It's a lot better feeling as you'll feel you're actually making something of it.. plus the fact you actually are rather than as you say holding on and it all going pear shaped. Don't get too greedy ;)
 

Nikhil Dogra

Member
53 1
Don't get too greedy ;)

Its very easy to say but so damn hard to actually not be greedy , i have learned to conquer my trading fears , by that i mean if a position goes against me i use orderflow analysis if price has gone through my mental stop i don't book it asap usually market is shaking weak traders out and in 100% of time markets do come back [provided one is trading with the underlying trend] Rest i am working on not being too greedy , yesterday in crude oil i let my 3900 gain turn into a 625 (n) just by being greedy for few more hundreds!!

I have conquered fear , now greed left! I wish someone had a cure for this "need to want more"! :confused:
 

datav

Active member
230 9
I think this is the crux of it. Instead of thinking "how much can I make" you should think about setting a target to make an amount. If you asked traders if they could make say 10 points on the DAX in one day, most would say yes. So suppose you set yourself a target of 10 points, and you would wait until you had a set up where there was a really good chance to get 10 points, (this happens 3 or 4 times a day), and then, once you have the 10 points, No More Trades.

The limit to how much you can make is only in your head. Once you can get 10 points per day, you can build your account. 10 points at £10 per point (one contract) is £100, 10 contracts for 10 points is £1000, and so on. Lets start with a £10,000 account and see how long it takes to turn it into £1 million.
 
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Nikhil Dogra

Member
53 1
Never works out like that though does it.

Nope, a/c grows position size grows, greed grows and so does the losses :LOL:
It can be done though turning 10k into a million, time taken would definitely be long
but it can be done, only hindrance would be ourselves.
 

mepbih

Newbie
9 0
Experience and learning are required but they are not so much learned as acquired. Theory alone or hunches alone will most likely cause the new trader to lose consistently and possibly fatally for your grub stake. Narrow your focus to things you know the most about. A farm boy might concentrate on food companies or farm implement manufacturers or on grain handlers for example and build carefully and make small bets only and not allow them to run too far in the red without stopping at a limit of dollars or in per cent. Old traders will still do this but their experience makes it possible for them to go with larger positions than a newbie. I have come to the point of having the guiding principle of all sales all the time. I don't deliberately buy much of anything. What I own I will sell calls against. When there is little to sell calls against then I sell naked puts well out of the money and in small amounts. When I have a good profit I might offer to buy back cheaper but often wait for an expiration as worthless or if assigned something to sell calls against. I should have gone this route when I was younger, it avoids a lot of bad buys. The real caveat here is to sell puts when the market is really bad so that in recovery you do not get assigned. When the market is high just concentrate on selling out of the money calls that will make you better off.
 

datav

Active member
230 9
Nope, a/c grows position size grows, greed grows and so does the losses :LOL:
It can be done though turning 10k into a million, time taken would definitely be long
but it can be done, only hindrance would be ourselves.

Its all about time and timing. How much can you expect to make in X time. A month, a year?
Suppose you said that you wanted to double your account, and suppose for arguments sake you had a £10,000 account. There are 20 working days in a month (roughly), so that means you need to average £500 per day profit to double your account in 1 month. Suppose you bet £50 per point (5 contracts on the FTSE futures for example) You only need to get a move of 10 points to make your target.
This is not too hard. What IS hard is stopping and not trying for a bit more.
How many people started really well on Friday, only to end up in the red?
That's why all experienced traders know that self discipline is the key.
 

kenu29

Newbie
6 0
Its very easy to say but so damn hard to actually not be greedy , i have learned to conquer my trading fears , by that i mean if a position goes against me i use orderflow analysis if price has gone through my mental stop i don't book it asap usually market is shaking weak traders out and in 100% of time markets do come back [provided one is trading with the underlying trend] Rest i am working on not being too greedy , yesterday in crude oil i let my 3900 gain turn into a 625 (n) just by being greedy for few more hundreds!!

I have conquered fear , now greed left! I wish someone had a cure for this "need to want more"! :confused:

hi nikhil , Do you trade indian markets or US markets . $625 per day seems too good to believe.
 

Nikhil Dogra

Member
53 1
No its not $ LOL! Its in INR , In $ terms average is close to 120 per day. In 2013 i have not had a single red day because i have diversified in my trading, i am trading 10 markets now. Index Futures/Index Options/USD/Euro/GBP/JPY/Crude Oil/Nickel & Natural Gas
 
 
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