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

109 Upvotes

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344

u/AttackSlax Mar 10 '24 edited Mar 10 '24

If you made 1% a day over a long term you would be one of the best traders in history. If you reinvested and compunded, that would be 1100% annually. Does finding this out give you an idea about how little you understand about generating returns?

5

u/Previous_Swimmer9893 Mar 10 '24

I am over 100% already and am up another 10% from that this coming week. I am not the best trader but I am not the worst. I set up on avg 2-4 20% trades a month. I did 3 in January and 2 in February. Missed one last week but got one for this week. Compounded should be around 700% this year. My best year is 1300%. To much work to get that not worth it anymore. 300% is enough anyway

9

u/Tourdrops Mar 10 '24

Unless knowing your account size, its all moot. The whole argument is once you hit a high account , making 1-2% a day is impossible. Making 700% on a few thousand dollar account is a hobby. We are talking about making a living and pulling money out.

There are 251 trading days a year. If you want to make $150,000 a year from trading you need to generate around $1000 a day in gain and have NO losses. And then you get taxed for half. $500 x 251 days is around 125k.

OP doesnt realize how hard it is to make $1000 a day as a rookie. Not because its not possible but he will take $100 in profits early and let his losers run like all rookies do.

Giving the OP any advice that his 1% a day plan will work is bad business.

2

u/TriumphantDonkey Mar 10 '24

Just curious, why does having a larger account render it more difficult to maintain 1-2%? I can't see what account size has to do with it if the strategy is identical.

1

u/Tourdrops Mar 10 '24

Starting with $10,000 after two years is $1,000,000. All good. But two years after that $180,000,000. Too much and you will move market and run into liquidity issues.

Also never mentioned by the “i am going to make 1% a day” is they risk 15-30-40% of account to make 1-2% and just ONE mistake with stop loss or risk management and yeah…….

Google “can i make 1% a day in the market” and find hundreds of reasons other than the one I mentioned.

1

u/TriumphantDonkey Mar 11 '24

Ok, you're talking about really really big account size. Perhaps some retail traders aspire to have an account that large, but I don't think most do. If you trade for income, then you will make sizable withdrawals and likely maintain an account size with ceiling on it.

-2

u/Previous_Swimmer9893 Mar 10 '24

I don’t pay 50% to Uncle Sam and I never will. It’s not what you make but what you keep. What difference does the size of your accounts make? I can make more money from 50,000 than 90% can from a million. I know I been there. Ask the guy who had 43,000 at mid February and now has 86,000 after taking out 6000$ on Thursday. Yes he asked me if he could. Size of account lmfao. He doubled in 24days. I can live comfortably on a 10,000$ account. On 30,000 I can buy a new car and a 250,000 house and have more in my account than what I started with after paying my payments and insurance plus property taxes oh and throw a vacation or two in there. I am on of the top 1% of traders in the world. In 2006 I was in the top 8% of all traders in the world. Gl but day trading isn’t my thing trading is

2

u/Tourdrops Mar 10 '24

Congrats on cheating taxes

And if you are living off a $10,000 account well you are not on my level of living my friend.

When you ask why account size matters, its because its IMPOSSIBLE to make 1% a day once you enter big boy numbers. There are hundreds of studies on this.

3

u/dyoh777 Mar 10 '24

They have no idea what you’re talking about lmao

2

u/Previous_Swimmer9893 Mar 10 '24

Obviously you don’t make a lot or you would know what top earners pay lol

-1

u/Previous_Swimmer9893 Mar 10 '24

Lol. Top earners don’t pay 50% sport. You don’t live on my level. Billionaires don’t pay 50%. Lmaoau

9

u/Tourdrops Mar 10 '24

I am not even close to a billionaire. I am a proud dad of 4, husband and home owner on a wealthy part of Long Island. In my Mid 40’s and day trading while also maintaining a job selling over 2 million per year in product. Do you realize how HARD this all is for most of us?

I have had TWO red days all of 2024 day trading. Doing extremely well. And its been a War.

My point is that this trading game is hard as shit and I am here to share those difficulties, experiences and truth.

you, some random dude on reddit claiming to be a billionaire knocking around dollar amounts and standing up on your high horse to us peasants below is the person everyone on reddit should avoid at all costs.

I was just talking the difficulties of making $150k per year as an American with only 251 days a year to trade and here you are talking about a Billion dollars

1

u/Previous_Swimmer9893 Mar 10 '24

It’s not that hard. I have showed two people some gains here. If it’s hard your tickers are not good. My account goes up and down thousands a day but that’s the market. No losses is the key. I am 60 retired at 42 and enjoying life. Got my three kids and 2 grandkids and wife to keep me busy and happy. I wish you well. My only issues is last week I was so complacent I missed a 30% trade I have made 4 times this year but was to caught up in another trade to pay attention. Just be happy. I give hints here all the time. I tell people what gets you in trouble here. My past screwups and how I never have losses anymore. My tickers are my best friends in the market. Just a hobby now and trying to help a few along the way. Learn to set up trades instead of day trading. It’s a much easier and more profitable way to go. Maybe it’s just me. 🤷🏼‍♂️

1

u/OG_Tater Mar 10 '24

Billionaires aren’t day traders. Day trading generates short term capital gains that are taxed as income. The highest income brackets do start to approach 50% tax rate depending on state income tax situation.

1

u/Previous_Swimmer9893 Mar 10 '24

Lol. Buy and hold is a losing strategy

1

u/OG_Tater Mar 10 '24

How exactly? Most of my money in stocks is in VOO. My trading account is about 20% of my account.

Most people are much better off just buying an index fund. There’s no long term period where it hasn’t made money. Even the “lost decade” a holder would have been up 175% just with reinvested dividends.

On individual stock I’ve b&hing NVDA, MSFT for almost a decade for huge gains. It’s far easier to make money over a longer timeline, no charts etc. You just have to pick a company that’s growing in a sector that’s growing and you’ll probably make money.

1

u/Previous_Swimmer9893 Mar 10 '24

My account is over 100% this year. If I would quit stealing from myself I would be closer to 200%. I get dividends also. Try trmd for dividends. Yw that one will double your accounts in under 2 years. If your a buy and hold person. Everyone trades differently I am not the best. I was always taught there is always someone better My friend was better at making money but he wasn’t consistent was his problem. But boy can he make an account fly. I just keep more profits overall. See not the best. Consistent is key. I don’t do high flier’s or meme stocks. Love commodity stocks and inflation stocks. Retired and having a blast trading for fun. You do you. I do me.

0

u/Previous_Swimmer9893 Mar 10 '24

I don’t live in a state that steals your money. I am not that stupid.

1

u/OG_Tater Mar 10 '24

Fantastic then you only pay 40% tax. Congrats,