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Are you an intraday trader as a profession?

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For intraday trading I would say you should risk no more than 1% PER DAY.

That would make each trade about 0.02 % capital at risk, depending on expected trades per day.

As for me I make 100 to 500 trades a day and can earn more than the avg yearly wage in days. And you have no hope getting there with 10 g's :::::
 

TH
a previous post of yours (on a different thread) gave me the impression u started trading with minimal TC. I could be mistaken, but if i'm not, look at where u r today.

certainly a beginner cant go from zero to hero in a year, but what they can do, even with a small TC, is make a start, as my post a few back states.

and once you've made a start, and years of doing it tough with a small TC, and not blowing up your TC, the magic of compunding, skill and dollars, will get u to the finish line.
 

to add to what the experienced traders such as TH have noted, u 100% cannot make a living with 10k trading capital.

the easiest way to test your trading knowledge/skills/theories is with CFD demo accounts, with the various providers. IG, GFT etc

see how much u lose. ( u could blow 10k in a fortnight easy)

if u r clever or lucky enough to be ahead at the end of that, realise real money is obviously much more difficult, due to emotional impacts.

i was able to be slightly ahead on trial CFD accounts, after 12 months of trading ASX shares (at a loss).

Due to ongoing volatility, trading is very risky, unless u r experieced enough to profit from volatility itself, as opposed to riding trends with leverage.

my answer assumes u r a newbie.
 
1% per day? Wow that's a very small amount...equates to around $50 per day if I have $5000 capital.

So I'm assuming when people advise you not to risk more than 2% of your capital per trade they are saying that in reference to swing and long term traders who would hold onto their trades for greater than a day? I'll keep that in mind~ And my ambitious med-long term goal is to get to your level of profits sometime : haha *awaits flaming*
 

Not wanting to speak for TH, but that minimal aco**** was just a bit of 'fun' for him i think, it wasnt his major trading account.

And yes you can grow and compound a small account, but you cant expect to draw a living from it as these posters have asked
 
James Austin said:
TH
a previous post of yours (on a different thread) gave me the impression u started trading with minimal TC. I could be mistaken, but if i'm not, look at where u r today.
Click to expand...

Nah I lost about $80,000 in my first few years. Then rebuilt from there.

$10,000 capital would have had me out of the game in months.
 

YES.

If you are doing 10 trades a day (which I consider not enough) and get them all wrong, don't be fooled this is very common, and are risking 2% thats 20% of your capital in one day

The chances of coming back from that is very unlikely. IMHO
 
Ahhh ok thanks for that advice!

It never really occurred to me that the 2% advice was really directed towards the long term traders! Thanks for the heads up TH!
 
Why not have my first post here. I signed up today because I (like the rest of you) just received an email promoting a certain bucket shop, whoops, cfd DEALER.

Anyway, I think you can make a go using $10,000 will the following additions.
* Plenty of experience with real live trading using a "method" that you have confidence in. How, start trading very small and be prepared to lose a lot through mistakes. I consider myself a trader of reasonable experience but I can still throw money away due to error and poor mindset management.

*Confidence in your method (did I mention that already). You need to trust your method otherwise when you have a real stake in the market you will not follow it. You will start getting out early (only to watch the market run off) and holding on for a few more ticks (only to see the market take off, this time, with your money).

* A super understanding of the platform you use. This is to avoid needless mistakes which cost you.

You need to keep your risk small, especially in the beginning. You will lose money. That is the only guarantee in trading. To keep your risk small you will probably have to trade with the CFD dealers. Just be aware whilst their prices are based on a live markets the wont be exactly the same. And it will seem that the extra ticks they seem to add will just happen to take out your stops before the market moves in your favour. They have an interest in running your stops (which they know the levels of unless you keep it a mental stop - but dont do this yet). They get the spread and/or the commission from doing this.

I have been using CFD dealers for my short full time day trading career, which has only been going for a few months, and have been making money starting with a smaller stake then yours. This just makes it that much harder but I have been around trading for a few years now.

Dont let anybody tell you you cant do something just be aware that with your situation you will need a lot of hard work and unfortunately (I cant believe I am saying this) LUCK. The bigger your stake grows and the more experience and confidence you get the less luck will play a part.

The 2% rule of risk management has been pushed and prodded for years and I think that it is widely accepted that at this level you are guarding against bad luck taking you out. the theory is the longer you stick around the better your chances of long term success.

The odds are against you and if you want to run as a long shot just remember that you may do the lot. But you will be much richer for the experience as long as you learn from it. Keep your size small and spend any spare time soaking up s much knowledge as you can. Get confident in your method/system by paper trading it then start live but stay really small. Work out the kinks, leanr your platform, and keep your emotion in check. If you feel the need to double down and get it back - walk away. Dont be greedy and dont change your method mid trade. Stick to the rules and re-assess out of the market.

That should do for a first post. Remember there is really no wrong way to trade as long as you have confidence in it and it makes money. Well I suppose there is wrong ways to trade but I am sure you will discover that in your journey.

BTW, the search function in forums is knowledge gold dust. Learn how to use it and you will find nearly everything you need.

Cheers.
 

Asking how much money people earn from day trading is a bit like asking how much money people make acting or as a writer... This is one of those jobs that has no limit in terms of potential income, but the probability of success is against you... for every Brad Pitt and JK Rowlin out there, there are hundreds and thousands of struggling actors and writer who can't make ends meet.

One should always take into account of the opportunity cost of trading. Trading is not only risking your trading capital, but doing it full time means no employment income. So even if you are lucky and got 25% return on your $10K, this $2.5K has actually costed you ~$30K (avg salary after tax). Treat this an a major "investment" decision of you life. Since you went to uni for several years, why not capitalise on that investment for a bit first. The market will always be here...
 

Good point. The problem with trading full time as opposed to in addition to a reg job is that it puts a lot of pressure to perform on the individual. Without the neccessary skills or confidence (or capital) this is an added stress you dont need.

Why bother with 3/4 years at uni if you are not ganna use it. I put in 8 years work (still not much) before attempting to trade full time. I wanted to trade full time after leaving (whilst still at) high school. This gave me time to get a base in real estate, etc, which eases the pressure. Gotta love those lines of credit.

I know I didnt want to hear it but it just helps put a few things in your favour.
 
@skc: good point! didn't think of it as an opportunity cost. also when i asked how much people were earning i was actually referring to your own personal position, not in general. sorry for the misunderstanding

@TH and milligan: just to know there are some day traders out there that are doing well is good enough inspiration to keep me striving for it!

oh also. could anybody point me in the direction of any sydney based trading firms or similar? i wanna apply for a job! lol
the only one i know is propex derivatives
 
Making money consistently off the quote screen may be the most difficult type of trading. You have to make decisions on the moment. 10k in Forex may be a small but adequate start but you will have to incorporate some very, very good maney management rules into your trading plan. And you will need a lot of discipline to follow those rules!
best of luck
 
Trembling Hand said:
and land it big time lucky with a market that suits your style.
Click to expand...

And isn't that the big one. You need a good market to begin in, if you want to build fast.

Average pay? Impossible question.

Completely depends on the trader and the market(s) they are trading.

A decent Nikkei trader could make double a good SPI trader just because of the size they can wack on. But Nikkei is probably a harder market to master from what I hear.

Let's just say, on a good day, a very good SPI trader can make much more than the annual yearly salary. But like anything, that requires some risk on the day. Nothing is free in this game, it's hard damn work, but mightily fun if you get it right.
 


no no no no no n on on on on on nNO!

get an account with GoMarkets and trade 0.01 lots. its around 30cents per pip. you DO NOT want to have anymore leverage then that if you are starting out
 
Naked shorts said:
no no no no no n on on on on on nNO!

get an account with GoMarkets and trade 0.01 lots. its around 30cents per pip. you DO NOT want to have anymore leverage then that if you are starting out
Click to expand...

or sign up with IBFX where you get $100 lots ie 0.001 of a standard lot, thats what ive done and im earning a few dollars a day perfecting or nailing my system
 
white_goodman said:
or sign up with IBFX where you get $100 lots ie 0.001 of a standard lot, thats what ive done and im earning a few dollars a day perfecting or nailing my system
Click to expand...

wow good stuff! shall give it a try!
sorry i read wikipedia about "pip".
i dun really get the example they give
"The pip is the smallest measure regardless of the fractional representation of the currency exchange rate. Thus, 1.3000 to 1.3010 is the same move in pips terms as 110.00 to 110.10."

how is 1.3000 -> 1.3010
the same as 110.00 -> 110.10

one is 10cents the other is 0.1cents
 

when/if you get with a broker, you will see on the 1min chart that the price moves up and down, the smallest it can move is a pip. (its not something to get worried over however...)
 
Being under-capitalised is a source of endless frustration for me, as it is for many others i'm sure.

Every time a thread appears asking "Is $x enough...", the experienced traders respond with "no way, can't be done". And no doubt they're right - especially in this market.

One of the best tips i've ever come across was from Trembling Hand's blog (I think - pls correct me if i'm wrong). It was to "focus on the process, not the money!" Reading this made me feel less like an outsider, and more like someone on a who has to walk before he runs.

Good luck with your journey, Lammii.
 


the guys original question was whether he could MAKE A LIVING with 10k starting capital...answer unequivocal no.

thats not to say he cant BUILD his capital, even though 10k is probably on the low side, and when u r new, u r more likely to lose than profit.

but EVERYONE is new at first.

problem is u r competing in an open market against much more experienced operators, so they take yr money.

just like if u decided to jump in a Class A motor vehicle in a field of pros.

another thing that works against newbies who want to earn a living, is that they have to go to work to pay the bills, then come home tired and try to play the overnight Oz 200 and get raped due to liquidity spreads, or markets they are unfamiliar with such as S&P or Forex and get ganged by bigboys
 
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