$100 net profit a day is my goal

[converted]

Hey guys Im Craig and Im new here. I have introduced myself in the Beginners thread but Im after some info in this section to help me obtain some things in life.

My goals are this, quite "simple" but i know intrinsically hard to do from a standpoint of zero education at this stage.

* I want to make $100 a day net profit.
* I want my return on that day so I can walk away from my computer and get on with life after that $100 is achieved.
* I want to do that with as little financial outlay as possible


If this is an impossible task, thats fine tell me and Im gone, but if its feasable and all it takes is hard work and discipline thats good. I know if it was easy everyone would do it, so I here to learn.
Im open to suggestions as to what books I need to read, what stock software I need to use, what online trader I should use, what sort of stocks offer me this daily short term gain etc etc.
Any URL links for this would be much appreciated.

 

[BradK]

Hi Craig,

$100 a day? You could wait until drought really hits Australia, and the Saudi's will have a World Vision type program. You could get onto that?

If you are unfortunate enough to get rain, you are going to have to look for other ways to get your 100 bucks.

You need to work backwards.

CAPITAL:
How much capital do you have to outlay to get your $100 bucks per day? $100 bucks per day is $52,000 per year, or if you want it AFTER tax, its a bit more like $65,000 per year, which means you need to make $178 bucks per day (including weekends).

RISK/REWARD
It depends on your risk/reward profile and your chosen investment instrument. But think about returns. How much return % can you expect to get. If you are trading and you break even in your first year, you are doing well. However, I would imagine that most traders in this market are earning upwards of 20% (although there is no way I can verify that). But, remember this little saying - never mistake a bull market for your own genius. Think about it.

HOW are most traders going to fare in a flat or bear market?

TIME FRAME
If you hope to get 100 buck from the market in a morning and walk away from your computer you are pretty sorely mistaken. Not saying it cant happen, but you need to be either a) very skilled or b) lucky. You need to work your 100 bucks over a week or month. Some days, weeks, and months will be bad, some will be good, some you will feel like Midas.

EDUCATION:
Someone said to me that you can either pay for a course for your education, or the market will take your money for your education. I have done a combination. The ASX website is a great place to start. www.asx.com.au - books such as Trading for a Living by Dr. Alexander Elder, or anything Australian by Chris Tate for example.

MONEY MANAGEMENT:
Make sure you can manage your money, or the market will munch you. People tend to fall into two categories. Either they control their money, or their money controls them. Make sure you are in the first category. This is not gambling. Some questions you could ask are - do you budget? are you disciplined? are you prepared to accept loss?

If you are here to get a quick buck from the sharemarket you are going to be wrong. You need to put in the time and discipline to develop your own trading plan. You need to learn to cope with your emotions (greed and fear) and you will know what I mean by this when you put on your first trade. You will need to learn about fundamental analysis vs technical analysis. These are no easy, but can be mastered with time and effort.

Noone ever arrives. There are that many instruments on the stock market, and people do what works for them. that is the key: having a plan and sticking to it.


All the best with it Craig. Look at the various forums on the web and learn. There are some great research on individual shares, charts, etc. But YOU MUST DO YOUR OWN DUE DILLIGENCE. Only YOU are responsible for where you put your money. Losers blame other people.

On another point - forums are not places to ask for buy/sell advice. People can give you general information about finance and their opinion about shares etc. but we are not financial planners. In fact it is ILLEGAL for us to give you advice.

Cheers mate, hope this helps
Brad

 

[jj0007]

A mate of mine told me he has been using the T-3 trading on comsec (where they allow you to execute orders up to $50k) and has been making $100 a day. He would buy on market open and sell when the stock makes a 2-3c movement. Has been doing it the past week.

I told him that is great when the market is going up...but if turns against you then you will be royally sc@wed ....made worse by the fact that its not your money and they will charge you dishonour fees, interests etc.

 

[Temjin]

jj0007, it is best you follow Bradk's advices and start doing more readings and tons of research.

You need to be made aware that you will NEVER make profit consistently in EVERY trades you have. You need to be psychologically prepared to accept loses and that it is all part of your overall trading plan.

In reality, you have a LONG WAY to go before you could make $100 per day consistently (averaged over the long term accounted for winning/losing trades). I'm talking about thousand of hours of effort in here.

If you feel you aren't committed to trading and you just want $100/day without any "efforts" and regard it as an "bonus" income so you can concentrate on your daily life, then I suggest you should look elsewhere.

Not trying to encourage you here, but just trying to make you aware of how much work you need to even consider achieving that.

And if you can, don't talk about $100/day, talk about making a % of profit of your capital consistently over the long term. (get your calculator out and start punching in numbers on the beauty of compounded interest)

 

[jj0007]

Hi Temjin. I think you meant to address "converted" here. I do agree with what you are saying.

I have tried trading in the past with mixed success. Overall came out on top but when I look back over the past 5 or so years...if I had held onto ONE of my top picks I'd be far better off than what I gained from trading.

So last year decided to "invest" rather than "trade"....reward has already been multiples of what I got from trading over the last few years.

 

[Wysiwyg]

Converted...you won`t make $100/day daytrading.You will lose more often than not and when you lose you will lose more than the $100 you hoped to win.

You will achieve much more with a longer term outlook.

But hey ... there is only one way to find out ..right? :ald:

 

[stoxclimber]

Aiming to make $100 every day is like playing at the casino with a Martinggale system.


You can, if you are skilled enough, put your money in a situation where your expected daily return is $100. But theres a high degree of volatility, you could have +$800, or -$700 [or even worse of course!]

 

[hypnotic]

Hi Craig,

I don't believe this is an impossible task and outlay don't need to be alot too. You don't neccessary have to make money in an up market you can possibly make money in down markets with short sells. All you need to do is pick correctly if a index or stock will go up or down. You can do this with CFD (Contract for Difference). You can learn about it online or attend to free seminars by Mac Bank or other CFD providers. Highly leveraged tool you can make as much as you can lose.

You need to have a clear trading plan (entry, exit strategy and stop losses), understanding of the markets and the economy.

I just read an article from this months issue of the Smart Investors who asked this lady to day trade with $10,000 for a week (5 days) in a CFD account. And she returned a neat 6700 net profit for the week.

In saying that it is not 100% guareenteed to work everyday or every week. One thing for sure is you need to learn about trends, companies, technical/fundamental analysis, how other exchanges, dollar, events, metal prices etc affect the stock market or certain companies.

If you have just started i suggests you do a lot of reading and start paper trade and learn all you can and come up with your own style. If yo uhave any particle questions ASF members will be glad to help you out.

Good luck with it,

Hypnotic

 

[lrushing]

Hi Craig,

In your initial posting you stated the following:

• I want to make $100 a day net profit.

• I want my return on that day so I can walk away from my computer and get on with life after that $100 is achieved.

• I want to do that with as little financial outlay as possible

If you evaluate each of your comments independently, they seem reasonable. It is when you combine them that the underlying problem surfaces. You are focusing on profits first and not risk.

Every trader’s success depends on his/her ability to keep the total $ amount of the losing trades smaller than the total $ amount of the winning trades. Learning to take losses can be a psychological battle for new traders. The real goal in money management is quite simple. Every trader will have a bad trade, a losing streak, a bad day, and so on. Learning to mitigate the risk in each of these situations will allow the trader to come back and trade another day.

Hence, you should refocus your efforts initially on preserving your trading capital and restate your objective in the short term to allow you time to learn, adjust, adapt, and progress as a trader.

 

[>Apocalypto<]

Hey guys Im Craig and Im new here. I have introduced myself in the Beginners thread but Im after some info in this section to help me obtain some things in life.

My goals are this, quite "simple" but i know intrinsically hard to do from a standpoint of zero education at this stage.

* I want to make $100 a day net profit.
* I want my return on that day so I can walk away from my computer and get on with life after that $100 is achieved.
* I want to do that with as little financial outlay as possible


If this is an impossible task, thats fine tell me and Im gone, but if its feasable and all it takes is hard work and discipline thats good. I know if it was easy everyone would do it, so I here to learn.
Im open to suggestions as to what books I need to read, what stock software I need to use, what online trader I should use, what sort of stocks offer me this daily short term gain etc etc.
Any URL links for this would be much appreciated.

Nothing is impossible and if you work at it hard enough and long enough then you can archive it.

You may have probs making exactly 100 per day, some you may make more others nothing, its all about the end of week average.

At the beginning only make very small plays till you develop a winning system that produces profitable weeks for at least a couple of months you want to come out on top after those months not breaking even if you do you still have probs with your system.

If your looking to day trade I don't know if paper trading will really help that much as it does not teach you anything about how your emotions will come out in the real thing.

Make tiny size trades and write down what works and what did not and in what situation it worked or did not. analyze every thing you do.

Day trading is a tough gig, you have to always be watching the price looking for set ups. if your away from the screen for 30 min you could miss a entry, that missed trade could make your day or week not profitable.

Good trading.

 

[Realist]

$100 a day is not so easy to do.

It'll cost you $40 in brokerage for one buy and sell.

You'll need to pay 50% tax on profits as well.

Your goal is not a logical one to me. Because you will without question also make losses.

To average $100 a day after tax, you need to be making $300 a day on most days. Then brokerage, tax and bad days that incur losses will wipe out 2/3rds of your profit.

If you hold overnight you'l make a big loss every so often as well.

If you never hold overnight you'll spend a hell of alot in brokerage.




You need to think more longterm I think.

 

[ROE]

If people can make $100 a day no one need to go to work ...

Imagine you have 100,000 and to make a hundred a day that is like $52,000 a year, that is like 52% return....

Even if you have 200,000 that still 26% return and if you can do that do that year in year out you be a very very rich man .

In short it's not that clear cut... investing is all about putting money aside and make sure that capital grow at a rate above inflation so you don't go back ward..anything else above that is a bonus...

 

[mit]

* I want to make $100 a day net profit.
* I want my return on that day so I can walk away from my computer and get on with life after that $100 is achieved.
* I want to do that with as little financial outlay as possible

The first is possible but you will need to accept volatility in daily returns. In most stuff I do my daily standard deviation is around double my daily mean.

The second one will kill you in the long run. If you cap your wins and not your losses you will end up screwing yourself. A lot of your profit will be made on exceptional days.

The amount of money required is dependent on your trading ability and your stomach for volatility in returns. Remember that during draw downs you get a double whammy as you still want to extract your $100 per day as well as suffering the loss.

My advice is to initially trade small and not have a profit target. Analyze your results and this will answer your own questions.

MIT

 

[Out Too Soon]

Converted, go for it. I'm getting close myself.

Forget about actually taking a $100 profit in one single day each day, you'll find out that the risks you have to take to acheive it would see you broke in no time.
A better way to consider $100 per day is a $100 profit per working day averaged over a month meaning you want to average ~$2200 profit per mth. The easiest way to calculate it is $2200 profit on shares sold each calendar month no matter if the shares were held for 1 day or 6 months. Spend about a year practising (with real money/trades), Don't waste money on any type of education just read, search, read & research on the internet. All the info is there, start with fundamentals & longer term investing & as you soak up more info trade more frequently picking up all the other types of analysis on the way.

As I said, I'm almost there having on avg $18K of the banks money invested at any time (up to $26K down to $10K at present). Be careful starting out right now May is on avg a bearish month. Small investments to begin with gradually building with your confidence. Expect to make the bank rich with brokerage fees to start too while you struggle along. Dont get frustrated & take big risks, trade patiently read, study & learn. Don't have all your equity invested at any time no one can predict market crashes or corrections & you want to have spare cash when a market hits bottom (early June I'm guessing)

An avg $200 per working day, ie $4400 per mth is a better target because some months you just wont make it and some months are too risky (like April leading into May now). You will learn that timing is everything & nobody gets it right all the time.
Time spent, like anything the more time you invest in it the more you will get out of it, sometimes I spend most of 14 hours at the screen, sometimes a half hour, as time gos by I find I spend less time to make more money but I've put in some very hard yards. You must enjoy it too, knowing how hard it is to make money in any form of work myself means I get a thrill when a trade gos my way. You have to get a big enough thrill from it to keep going.
The 2nd 6 mnths are the hardest, maybe I should right a book on it.

PS: stick with Aussie Stock Forums, don't make the mistake of thinking others are the same & never take for granted what you read on a forum or anywhere.

 

[violet]

Some good ideas on this thread.
It sounds not an easy target for me.

 

[SteveM]

Hi Craig,

$100 bucks per day is $52,000 per year, or if you want it AFTER tax, its a bit more like $65,000 per year, which means you need to make $178 bucks per day (including weekends).

It's actually $26,00 per year. If you are married, with children, on this income you would be getting income support from the government.

 

[bvbfan]

Someone please explain how someone can earn $100 a day and make $52000 a year?

365 days so surely that would be $36500 (add $100 for those leap years)

Trading days would be around 260 at most so even then would be $26000 hardly seems worth it, but I suppose if you include travel costs to work and other time it's not too bad if a basic no skills job is paying around $30000

 

[resourceboom]

If I had a couple of hundred million to invest, I reckon I could average $100 per day !!

 

[converted]

Thanks for all your thoughts in this thread. Very constructive and from I have have read completely possible. The variable is peoples trading strategies not that its physically impossible.
What I have taken away is great.

$100 clear profit a day seemed reasonable to me as it was around $500 a week or around $24000 a after tax. (in fact lees cause I wont be trading on weekends so thats around $20k) Brokerage fees and software costs and the like would eat into this but would also be deductable from this amount, but yes I was talking clear profit of $100 so my goal would be $300 gross a day to take into account/brokerage fees etc... got it....

$24000 would make a big difference in my family's life...single income and 4 kids and a mortgage. Thats a pay rise of 30% nett try getting that in todays market....it will definately help with the petrol bills in my Datsun and my Sea Ray 180 (oops maybe I shouldnt use Datsun and Sea Ray in same sentence that will have someones radar going crazy but its great to overtake a Porsche 930 turbo or an M3 on a racetrack and see their jaws drop...hehehe I keep the class for the water speed for the track other way round will send you broke. )
I also work a job in IT which is shift based and Im in front of a PC 12 hours straight a day, so no probs there with tracking volitility....especially with the right trading software.
All I needed to know was if it was possible. And yes from what Ive read it is...I wasnt worried about hard work Im used to that. I guess I was more worried about my emotions in picking a few long term stocks with large outlay and hoping for the best, but with good anaylsis tools work from prices in real time on the web, I cant see how it would be impossible. (I mean orica went up 25% in a day surely some software would pick this trend and I could jump on really quicky and ride that wave??? then pull out once the profit was made??? and surely companies lose just as much in a day and I know you can make money on downward trends as well which really appeals to me)

Also too my goal would keep my greed factor under control. Once Ive seen the $100 made then I would put it aside for the day. If I acidentally made more on the day great, but I would have to discipline myself to level off. If I hadnt made any money on the day them Id work bloody hard until I got there.
Once I was doing this on a very consistant basis for about a year. I would increase it to $150 or $200.

Yes it would be hard work every day but beats showing up at a boring insignificant IT job for the next 20years (if it still exists...BTW if anything is volitile its an IT job these days so Im not worried about a volitile day trading market).

Also if I was day trading and looking at making profit on market fluctations whether it goes up or down I also thought I would be immune to a large market correction which could happen on any day. My thinking would be a long term investor who hasnt forseen a correction would lose alot of capital on that day and most of the hard work in the last few years would be wiped out. I may only lose $100 for that day so this was my line of thinking too.

*Ok so next step people would recommend is who would be the best online broker I could sign up to...ie low fees no join up fee etc etc? Etrade Commsec or Westac or other?
*What capital would I need to start with? (Im thinking $1000) even If I start making $10 a day Im happy at this stage during my learning process
*The big question is what software may I use to help me with this which gives me real time and no delays?? and does some online brokers have software built in?? I have done some quick reading on the forums and have read about Amibroker and Metastock scan vest etc etc Does anyone have a full list and comparison chart (like buying a car)??? Is there one that is day trading specific???
* I will never ask for advise on which stock thats illegal however I will need to know how to set PE's etc etc in the siftware so I can let the software and my preset parameters make the choice and not my emotions. (I will keep that for the racetrack)

Anyway your feedback and thoughts have been greatly I appreciated and the time you have spent posting when you yourselves have a million better things to do shows me that the people on here are of great character and reputation and that you all have a vested interest in other people success which makes this a great country and democracy..thanks again...

 

[Holdon]

If you are guaranteed $100 per day then multiply your system by 10 or 100....or 1000....

IMO the only way to guarantee $100 per day is to go get educated an go work in the mining industry....you should make double and possibly even triple that....I have....$5000 minus tax in a week.

There are no guarantees in life except "death and taxes"

I do OK though.