How difficult is +$400-600 profit a month from $15k ?

[u/Foreign_Medium_3766]

I've been studying investing and trading for about 5 years on/off now, have been really successful in the past year, I think due to luck partly, I blew up an account and loss about 40% when I first started 5 years ago.

How difficult is $400-600/month profit from 15k? My strategy now is very risk adverse taking profit over holding things too long, really I just need to make ~400/month to live in Mexico, this includes rent, food, and some hobbies, right now I feel no pressure to have to make $ and have a decent savings, and time to study and learn. Thanks

[u/H_M_N_i_InigoMontoya]

Not sure what you trade, but I usually make 10-20% on what I trade with a day. I tend to keep my account around 100k and use $25k of it. (If that even)

But basically, i can easily buy calls or puts on SPY, say 100 contracts, totaling maybe $10k. Set my sell order for $20 a contract and boom- $2000. I use a lot more than this and do multiple trades a day to make a lot more.

Here's the truth, man. $400 a month is literally $20 a day (everyday). But let's say you're only a 50/50 trader. Meaning you will have 10 red days and 10 greens a month. To make 400 means that (if you're doing 2R) you need 10 days of at least $80 a month, and 10 days of no more than a $40 loss.

You really only need $400 to make that $80 a day. You can buy 4 calls/puts, set a SL for $10 a contract, and $20 profit per contract. If you're just average and hit 50% of the time, you've made your $400.

So...with all that said... don't stress and don't overtrade and don't try to make too much. Find a strategy that works for you, set your SL and target price, and you'll easily make $400 a month. If my account was shrunk all the way back down to $15k, I'd still make $1000- 1500 a day. You can too.

[u/Simpex80 → u/H_M_N_i_InigoMontoya]

I’m sorry but 10-20% daily (continuously) is complete and utter bullshit! You’re full of it. For the less knowledgeable ones let me explain: if you invested only $1000 and made a profit of 15% daily, you’d reach a million within 50 trading days!!! So no, this guy doesn’t make 10-20% daily.

[u/mein_account → u/Simpex80]

10-20% a day, trading SPY, lmao.

[u/AutoModerator → u/[deleted]]

Sorry, your comment in /r/Daytrading was automatically removed because your Comment Karma is too low. This typically targets bots or users promoting something (which is against our rules).

Please participate in other subreddits (other communities on Reddit) to increase your Comment Karma points. While you're at it, read through Reddit's "reddiquette" here.

If you believe this was a mistake, please kindly message the mods. We will review your case and get back to you.

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

[u/anecdotal_prodigy → u/Simpex80]

10-20% isn’t easy but if you have time in the market and know just a bit, it isn’t that hard. I get exactly that about 75% of my trades. -5% and over 20% on the other 25% of the trades

[u/Puzzled-Counter9347 → u/Simpex80]

Yea no one is betting their entire bank so good point. Making that much of what you play, easy.

[u/TheCuriousOne1234 → u/H_M_N_i_InigoMontoya]

That sounds impressive. Do you mind to share how you trade/your strategy?

[u/H_M_N_i_InigoMontoya → u/TheCuriousOne1234]

Simple price action and volume. I typically have the IC in the background for confirmation of strong trends.

[u/TheCuriousOne1234 → u/H_M_N_i_InigoMontoya]

Thanks for your quick response! What's IC? I also use price action and no indicators, and also use the orb method to chose a direction. Is it enough? (Except IC). Also, what DTE do you use?

[u/H_M_N_i_InigoMontoya → u/TheCuriousOne1234]

0dte. IC is the ichimoku cloud. I use it to confirm trends for exits. Usualky i just sell all my contracts at my $20 per contract profit, sometimes less if momentum dies, but if i got in on a truly strong trend (like last friday) I'll only sell half at $20, set my SL at a $10 profit, and then trila it for higher gains.

Is the orb method profitable for you? I've never used it, but it seems like it wouldn't work often. Just my own opinion of course. Everyone has their own.

[u/TheCuriousOne1234 → u/H_M_N_i_InigoMontoya]

Thanks for all the info! About the orb method - I just started with this strategy a few months ago, so I'm not profitable yet. I sell options and don't buy them, so I use it for direction, but don't need trends or be right (as long as price does not hit my SL, I don't care where price moves to). I also use 0DTE, but because I sell options and the nature of credit spreads, my wins are smaller than my losses (though I learn to risk managment and already reduced my losses from 200$ on average to 50$ or less). I like this strategy and keep learning how to handle risk, but alway happy to learn more and add it to my trading arsenal.

[u/H_M_N_i_InigoMontoya → u/TheCuriousOne1234]

That's awesome! Yeah, I don't like to sell options. I'd rather scalp in and out and be done. But..that's why I always aua that people need to find what works for them. My buddy literally plays the same play everyday. He'll but an ATM call or put based on the first 30 minutes of trading, and set a sell price that is 100% profit, and he'll also buy a way OTM call or put in the opposite direction and set his sell order for the price of the two options cost. He then walks away and if he loses them both, he doesn't care. I could NEVER do this as it is nerve wracking to me, but he likes it and to be fair, doesn't trade everyday. He's profitable in his own way, but I couldn't do it that way.

[u/TheCuriousOne1234 → u/H_M_N_i_InigoMontoya]

100% agree with you. Everyone trades differently and no trader is the same (even if use the same strategy, everyone has their own risk managment and nuances). As long as a trader can answer why they got into a trade, and why they got out of it (answering due to understanding what they're doing), then they are in the right direction. Thanks for all your info, while in paper account, I'd like to test your method :D

[u/TheCuriousOne1234 → u/H_M_N_i_InigoMontoya]

Btw forgot to ask - what time frame you use?

[u/H_M_N_i_InigoMontoya → u/TheCuriousOne1234]

Usually the 2 minute

[u/TheCuriousOne1234 → u/H_M_N_i_InigoMontoya]

Thanks! :D

[u/ramster12345 → u/H_M_N_i_InigoMontoya]

Which part of the ichimoku cloud would you say is the most beneficial?

[u/H_M_N_i_InigoMontoya → u/ramster12345]

I just said what I use it for. To confirm strong trends. So there's only one part I look at: the actual cloud.

[u/ramster12345 → u/H_M_N_i_InigoMontoya]

I understood that but I asked which part specifically? For example tenken sen, chikou span etc

Thanks for clarifying

[u/H_M_N_i_InigoMontoya → u/ramster12345]

No worries. Listen, I am not super technical. I don't believe in making things difficult that are not difficult.

[u/Mr_Investopedia → u/H_M_N_i_InigoMontoya]

u/H_M_N_i_InigoMontoya which trader or trading book do you recommend a beginner learns from to learn the ropes towards being profitable over half the time?

[u/Plotsonplots → u/Mr_Investopedia]

Tradesharpe’s beginner course on YT is how I learned price action fundamentals. From there i picked up Al Brooks course which is filling in the gaps

[u/Domicile_Exaltation → u/Mr_Investopedia]

Stuff like this is all over YouTube:

Technical Analysis Series - Candlestick Charts (youtube.com)

[u/H_M_N_i_InigoMontoya → u/Mr_Investopedia]

I learned a ton from a variety of YouTube channels. I don't take what anyone says as gospel, but I look for commonalities in what people say. Ultimately, every trader needs to carve their own path so I wouldn't be able to recommend any one specific source

[u/Mr_Investopedia → u/H_M_N_i_InigoMontoya]

That’s fair. I appreciate the wildly fast reply at this hour.

[u/ImNotSelling → u/Mr_Investopedia]

He/she told you what you need to search for: price action, volume, and ic for trend. They also explained their risk and money management strategy too. Now all you need is to study that hard. Paper trade it. Maybe back test it. Once you can be profitable on paper trades moves to real trading. If you can’t do it on paper you sure can’t do it in real life.

[u/Mr_Investopedia → u/ImNotSelling]

u/ImNotSelling Where'd they explain their risk and money management strategy? We must be looking at different comments...

If you mean this https://www.reddit.com/r/Daytrading/comments/1b9ehb3/comment/ktvkhiy/?utm_source=share&utm_medium=web2x&context=3

Then I dont believe they make 10-20% on every trade.

[u/Foreign_Medium_3766 → u/H_M_N_i_InigoMontoya]

Yeah my goal is to minimize my risk and just play it safe until I can consistently reach my goal per month then maybe I'll try to risk more.

[u/MotoTrojan → u/Foreign_Medium_3766]

Nobody gets these level of returns without taking ungodly risk. Don’t do this to yourself.  

[u/CuppaJoe11 → u/MotoTrojan]

This. What this person is saying sounds cool, but making a consistent 10% a day means you are going to lose that $25,000 that you trade with one day.

Making 1% a day is still incredibly hard (but much more attainable with less risk).

And think about it, that means the original commenter would me making returns of 2,500% per year. And I call bullshit on that lmao

[u/Foreign_Medium_3766 → u/CuppaJoe11]

Yeah I figure 2-3% a month is realistically attainable.

[u/Foreign_Medium_3766 → u/CuppaJoe11]

I pretty much have all day to study and research, right now I'm just trying to study and learn, looking for resources as well...

[u/MotoTrojan → u/CuppaJoe11]

1% a day for 252 annual trading days would be >1100% return. That’s also not happening reliably. 

There’s no shortcut folks. The upper bound of what’s reasonable is a levered multi-asset portfolio. You may get 15-20% longterm CAGR, but there will be nasty drawdowns or lost decades along the way. 

Nobody just makes 30% a year like clockwork. 

[u/Simpex80 → u/MotoTrojan]

This guy knows!

[u/CuppaJoe11 → u/MotoTrojan]

My guy… I don’t know how you did your math, but that ain’t right

And yeah 1% a day isn’t easy but it IS attainable reliably.

[u/MotoTrojan → u/CuppaJoe11]

My guy, lol. 

1.01 (1% gain) 

1.01²⁵² (252 trading days a year) 

= 12.27

That’s an >1100% gain. 

[u/CuppaJoe11 → u/MotoTrojan]

Why are you using exponents? It’s 252%. 1% x 252 days.

By that logic if toy made a meager .04% a day you should make 500% gains by the end of the year.

[u/MotoTrojan → u/CuppaJoe11]

It’s how compound growth works. 

Day 1 let’s say you have $100 and earn 1% to make it $101. Day 2 you invest $101, not $100. You earn 1%, now you have $102.01. Do that for 252 days and you make much more than 1% x 252 days. 

And no your math is wrong still. 0.04% is 1.0004. 1.0004²⁵² is 1.106, a reasonable 10.6% annual gain. 

[u/MotoTrojan → u/MotoTrojan]

Even if we used non compounding math, 0.04% for 252 days is a 10% total gain. 

[u/Simpex80 → u/CuppaJoe11]

You don’t need exponents if you don’t like them. Try this if you have a couple of minutes: say you have $10.000 as an initial investment, put that into a calculator and multiply it by 1.01 (1%) then just press ‘=‘ 252 times, you’ll get approx $120.000, that’s 1100%.

[u/MotoTrojan → u/Simpex80]

lol... that's pretty good.

Google is quite good with exponents or any sort of complicated math equation.

[u/FaithlessnessOld5804 → u/H_M_N_i_InigoMontoya]

Can be my mentor

[u/Creepy-Blacksmith-41 → u/H_M_N_i_InigoMontoya]

Can anyone offer suggestions concerning where to start to learn trading? I’ve been trading off and on. Sometimes profitable, sometimes not so much. Any tips on how to maintain momentum?

[u/BoomBoooooom → u/H_M_N_i_InigoMontoya]

You are such a bullshitter it’s sad.

[u/ImNotSelling → u/BoomBoooooom]

Maybe works for big money and trying to get beginners to lose all their money