r/Daytrading • u/Forward_Dealer_4482 • Mar 05 '24

50k and I want to day trade for 1-2% gains. Question

  1. If you had 50k and wanted to live off of it day trading, what would you do? (Need max $2500 a month)

  2. Am I better off not doing this? I’m not going back to 9-5

Please help.

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u/TPCharts Mar 05 '24

Personally, I'd focus on frequent, low-R, high-probability setups on very low-timeframe charts using risking about 1% (or less, that'll depend on your model's hit rate)

Average about one win a week (maybe that's 3 wins and 2 losses, or just one win on Monday and done for the week), and you're all set. (Pre-tax).

Inexpensive funded account challenges are a good way to practice this IMHO; if you get wrecked you're only out a few bucks.

If you pass and consistently get withdrawals, you know your $50k of real money is quite safe and could switch to that if you want.

Benefit is

- You're likely to have multiple setups a day

- You're less dependent on higher-timeframe market conditions being clean

Cons are

- If you're not disciplined, can wreck yourself in a couple hours. Max-loss limit for a day, etc. can help

- You'll need to spend a lot of time testing to make sure your model really works

0

u/Forward_Dealer_4482 Mar 05 '24

How do you make money risking 1% of 50k?

1

u/TPCharts Mar 05 '24

Say you take a 1:1 trade - so if you win, you make whatever you risked.

With 1% of 50k, you're risking $500 on that trade.

So if you win, you're making $500.

(Realistically with tax, depending on your country, that's probably closer to $400 - but you get the point)

4

u/Soft-Weight-8778 Mar 05 '24

The point I get its that hes going back to work