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Making a 100 a day

  #1 (permalink)

Boston Massachusetts USA
Posts: 11 since Dec 2017
Thanks: 0 given, 0 received

Making a 100 a day

I'm curious, is the main reason people don't like to trade a 1000 account to make a 100 a day is because of risk reward ratio or account risk % overall. Like for example my day trade plan that I use has a 3:1 risk reward. I go by ticks, so say it's 1 tick contract, I go for 15 ticks to win anf 5 ticks to lose. So I could lose 3 times and win 1 and break even. But if I win 40% or more of my trades, I profit. For me I've been getting 50-65% win constantly for about 2 years with stocks on a paper trade. With futures I'm seeing the same success, which is great sense I can day trade with 1000$ instead of 25k stocks needs.
So I see contracts I can buy for 500-800$ and they go by 1 tick and each tick is worth 10$. So if I place 10 trades a week, I win 5 and lose 5, I'd be up 50 ticks a week on average. Or 500$ a week 100$ a trading day. If we're going by the 15 to 5 ratio above, which is what I've been using and having success consistently. Now I see that risk, so I risk 50$ a trade or 5% of 1000$ investment, everyone says 1-2% max per a investment trade. But I'd be investing with money that I would live without like tax return money etc.. That if I lost it all it makes no difference in my life. So I can trade free of emotion, and even if I lose its fine. So I see no issue taking that 5% risk. The biggest drawdown my trading plan has had was 4 losses back to back. It happened once over the course of 2 years. Past that its a steady win/loss ratio out of my average trades typically 50-65% each week, a loss then win or 2 losses and a win or 2 wins and loss etc.. Is my average of how the trades go.

I'd just like opinions, past the risk 5% of my account and emotional part sense like I said i would not be attached to the money and have experience with live trading, what's stoppong from making a 100 a day if it worked out as stated above? I'm just curious, it seems great to me sense stocks was holding me back at the 25k needed to day trade.

Thanks all

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