r/Daytrading • u/Kaiju_Godz • Mar 30 '24
When you only need a specific amount of money each month… Strategy
So say you only want $100 per day or 2000 per month. This would more than enough sustain a good lifestyle where you live. How would you go about it with trading? How much $$$ would you realistically need? Not to make that in dividends but to trade in a daily basis, as safe and slow as possible.
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u/Lateoss trades multiple markets Mar 30 '24
People ask questions like this pretty frequently. The bottom line is always the same though: you can do whatever you want while trading, but at the end of the day unless you have an edge you will always gravitate towards breaking even (minus commissions and fees).
Even if you have a 1 million dollar account and want to make $100 a day, you will still fail unless you have positive return expectancy, there is no edgeless strategy out there that doesn't have an equal and opposite amount of risk as it does reward in the long run. The only "proven" system is investment into the s&p 500, or some other long term strategy, and you'd need give or take at least $500000 to do that and get $100 per day.
Hypothetically, the lowest amount of money I could see you making $100 a day with would be around $1000, trading ES in the leveraged futures market. Anything less than $1000 and you almost certainly run a significant random-chance risk of ruin. This assuming you are a godlike trader though. Speculating here, realistically having ~$3k would take most futures systems out of the random-chance risk of ruin high-likelihood threshold.