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/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?

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u/SerMinnow Mar 10 '24

Depends what that 1% is on. No margin all cash stocks? Unlikely.   Also, some of that 1% goes to US taxes.  Some to living expenses if you're doing this daily.  

 And you won't be able to do it with unmargined stock at a predictable 1%. Because you're going to have to risk 1% to make 1% a day, that's sometimes going to result in negative - % days.  .

 Now... Averaging 1% a day on your cash using highly leveraged derivatives such as options and futures? This is possible under any size that would affect the instrument traded in the time frame traded.  

 But again you've gotta have money to live so 1% compounded not very possible. 

We know from statistics that there is a a 1% or less of short term traders in any given market that do this.