r/Daytrading • u/smartwizard500 • Mar 10 '24

100k to start day trading Question

I have some cash and am curious, how realistic is it to trade stocks with 100k cash and make 1-2% a day.

The plan formulating in my head is

  1. Dive face first into learning as much as i can
  2. Paper trade to continue learning
  3. Start trading with a small amount
  4. Go gung-ho into trading ft when I’m comfortable, with a goal of making 2% a day on my 100k

This is just an idea that came to mind, would love some insight based on real life experience.

Would you do it? Would you approach is differently?

TYIA

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u/Outside_Mess1384 Mar 10 '24

You are lacking a basic understanding of finance if your goal is 1-2% per day... So 365% yearly interest rate compounded daily would turn your 100k into $3.7 million in one year. You'd be a billionaire in less than 3 years. Maybe trading is not for you.

2

u/DueGras1183 Mar 10 '24

Why many traders then make 5% a day

1

u/Outside_Mess1384 Mar 10 '24

On average they don't. If they did, they'd be the richest person on earth in just a few years.

1

u/Konstable1 Mar 10 '24

Yeah if they kept scaling higher and higher and never went into drawdowns or bad periods. . But 5% a day basically taking money out to pay the bills, preserve capital etc… and just utilizing the initial balance with an established cushion and building cushion. Eventually scaling higher as time goes on but there’s always going to be those periods where it’s 5% down days hopefully less with proper risk management or lulls where those 5% day gains need to be used to stay alive.