So let's talk about how we can make a million dollars daytrading.....heck why not discuss making 10 million this year. We have 10 months left so let's get at it dude.
I guess the first question is.....yes, there is another list of questions for "YOU" to think about, so let's put on our thinking caps and get started. The first question, and being serious, is how much money would you be happy with making on the course of a year. You must have had a job somewhere before starting to daytrade, RIGHT???? So how much more would you be happy with? You might even still be working at some sucker job....I mean you might even be fixing hair down at the local Walmart in the evening and are daytrading on the side to see if you can make it...RIGHT???
So how much would you like to make this year? If you were making $20.00 an hour..well that is about 40k a year give or that. Maybe you were making 65k a year being an empty suit......so if you could double that would you be happy with life?
Having the weekends off, holidays and the freedom to work even you wanted to and the freedom to enjoy your family and kids when "those" events come up instead of being on a jet to some meeting...or on a conference call and so on.....Would you enjoy that kind of life style? Shoot you could even work on the side for a charity and help others in some way........FREEDOM is what being an American is all about after all......
So what would it take to make 100k this year....let's start there. Well, that is about $8,000.00 a month...which is about $2,000.00 a week...which is about $400.00 a day. $400 a day you say....well that ain't that much is it.....400 a day...just 400 a day......think about that.....400 a day.....just 400 a day!!!!!!
SO now if we want to make 100k this year we only need to find something that can produce an average daily return of 400 net after commissions. I know that there are expenses beyond the commissions....but there are also expenses hauling you hind end to work at Walmart everyday....including lunches. Now you should have been working on seeing if you could find something in the first bar setup.....paper trading it and so on.....if you could find what can work for you and make that 400 bucks...then the question is.....do you have trade beyond that. If you traded 10 ER contracts you would only have to make 4 ticks.....4 little ticks and make 100k this year. Of course, it's not always that easy.....
But the first thing we need to decide is what do you want to make this year.....then you can start to work back and find what can get you to that 400 a day.....simple RIGHT?????
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2 comments:
Dude, you're a freakin' mind-reader!
I've already been through this line of thought and came up with the same $400/day for myself. I like your reasoning and totally agree. Do you want to be a millionaire, or "merely" financial independent? My answer for myself is the latter. Being a millionaire would be nice, but I'd rather be independent instead of working' for "the man."
Now of course it's time to find that strategy that I fully understand an can make money using. And make that $400/day!
This logic is fine, unless you take the persective that now you also need a return on capital for bieng in business, and not just a substitution for employment.
So qworking backwards from all of this you now have a minimum amount of capital inferred - but also need more capital depending on the success of the system and also the desire to receive 'profit' not just an income.
On top of this you also need 'personal working capital' - that is, the ability to pay bills ect., in relation to your personal life so you don't have to dive into the trading/business capital. So get any capital figure inferred and double it, because - Murphy's law - the day you give up your day job, is the day your car breaks down etc etc.
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