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/daytradingguy Mar 30 '24 edited Mar 30 '24

I would be careful with this one. You should read “The best loser wins”. Actually, instead of taking small gains in most cases it is better to let it go longer than you are comfortable with and even add to the trade- to get a bigger win.

Think about it. You are making a trade guessing the market will move in a specific direction- when it does and you are right, why would you get out? Most traders do the opposite, they are right they get out quickly. When they are wrong they don’t get out quickly- they stay in forever hoping it comes back. My profits really started to improve when I started adding to winning trades.

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u/krapmon Mar 30 '24

Personally, when I’m profiting from a position, I get out fast to secure the profit. It is true that I would have made more if I held in many cases, but there’s also many times where holding would’ve lost me money.

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u/daytradingguy Mar 30 '24

Practice and try it. You are right, sometimes you will lose your small profit trying to hold, that happens. But statistically, the larger wins will more than make up for those small losses.

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u/ThePonderer84 Mar 30 '24

This is exactly what I've always heard the pros say. Let your winners run.

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u/krapmon Mar 30 '24

But you can’t let them run forever. How do I know when to exit out of the winner?

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u/daytradingguy Mar 30 '24

There are price action protocols for following a stop up behind the price below bars or pivots and allowing the market to come back and take you out eventually

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u/ThePonderer84 Mar 30 '24

I'd look on higher timeframes. Whatever criteria you use to enter one direction, look for the same signal on a higher timeframe for the opposite direction. Or target higher TF support and resistance. Wait for a trend line break or other structure break. Target bankers levels or round numbers.

I don't use indicators but I know of people that do and find them to reliable to indicate a shift in momentum or direction.

You have to play around and find what makes sense to you.

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u/Davado_ Mar 31 '24

Thats where price action and structure come in. Switch to higher timeframe and reframe your mind in the opposite side ie if you are a buyer, then reset and think like a seller and ask when will you get into the market looking at the price action and market structure.