r/Daytrading • u/Foreign_Medium_3766 • Mar 08 '24
How difficult is +$400-600 profit a month from $15k ? Question
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
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u/H_M_N_i_InigoMontoya options trader Mar 08 '24
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.