Are You A Winning Day Trader?

If you are a consistently winning day trader …. congratulations! Sincerely, this web site isn’t for you. Goodbye.

If you have been day trading for some time and still losing money this site might help. So, read on ….

“90/90/90” is an expression used by brokers and it is their little secret. It’s depressing and implies that 90% of traders lose

90% of their account within 90 days. But sadly it’s quite likely that at least 90% of traders lose 100% of their money and it certainly takes a lot less than 90 days.

Is day trading difficult? Yes. It seems easy, but it is not. Day trading has to be learned. It takes time and effort.

What’s needed to be a consistently profitable day trader? Three things:

  • Trading System
  •  Discipline
  •  Patience

Sorry, the Trading System will not work without both Discipline and Patience.

Growing a $100 Trading Account to $10,000

Sounds crazy doesn’t it? Starting with only $100.

  • With a real trading account it’s possible to start with a very modest amount of capital and become a successful day trader. The $$$ are unimportant. It’s the %%% that matter.
  • Don’t tell your friends or family that you are starting out with an account of $100. They will laugh or pity you. Probably both. For several reasons brokers hate small accounts. They want your money!
  • Look upon the $100 as the first instalment of a long-term tuition fee. If the account blows up put in another $100 and try again … and again … and again. Keep on trying until you either give up or eventually become successful (i.e. long-term profitable).
  • If the idea of starting trading with only $100 seems ridiculous then start with $1,000 or $10,000 or whatever sum is meaningful to you. But whatever equity you put in be prepared to lose it. It’s a long, hard road but the pain of losses can be a good teacher for those willing and able to learn.
  • There are around 20 trading days in a month. Trading 18 – 19 days and with a modest profit target of 1% per day yields around 20% profit at the end of the month. As $20 profit has been made why not add $20 additional equity so the next month opens with an equity balance of $140? With 1% per day profit the equity in the second month will grow by $28 to $168. Repeat the process each month end by adding more equity which is the equivalent of the month’s profit. Keep going. In month 12 the profit for the month will be $810. Now that’s a profitable day trader!
  • This scenario assumes commencing the learning process with $100.  The timescale is assumed to be a month. But in reality the timescale can be shorter or longer. The essence of the system is to add equity each time a 20% profit benchmark is achieved. The additional equity is modest in order for the day trader to gradually increase the size of the trades. Trade sizing is vitally important and should be increased cautiously.

500:1 Leverage

Trading CFD’s has three important advantages.

  • Trading can be Long as well as Short.
  •  Secondly, high leverage of 500:1 means small price movements become very significant.
  •  Traders with only modest capital have a chance to earn sizeable profits.

Let there be no misunderstanding. Trading with 500:1 leverage is the nitroglycerin of trading. Get it right and large profits will be made. Get it wrong and the trading account will blow up. Not for the faint-hearted.

Target Profit 1% Per Day

What target profit should a day trader aim for? 1% per day is a realistic starter.

  • On average each month CFD markets are open for around 23 hours/day on 20 trading days. Bitcoin can be traded round the clock 7 days/week.
  • Trading for 18 – 19 days per month with 1% profit/day results in a profit at the end of the year of almost 780%. Amazing …
  • Albert Einstein once said “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it”