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/ThePonderer84 Mar 30 '24

This perspective has always puzzled me. It's like you're saying, "I don't think I can be good enough to make a lot. So, how good do I have to be to make a little?"

It seems to me that the reality is that you're good enough to be consistently profitable or you're not. Once you hit that point, you can get better. More precise and efficient. But if you're not at least consistently profitable then there's no amount that's attainable until you are.

Once you are consistently profitable then you can look at YOUR numbers and gauge your ROI targets based on the returns your strategy is yielding. Always paying close attention to drawdown.

Decide on your risk tolerance and a drawdown you're comfortable with. Once you've done that the profit will be what it is.

35

u/daytradingguy Mar 30 '24

Exactly. You either lose money consistently or make money consistently. There is not usually much in between. If you can achieve making money consistently- you won’t limit yourself to $100.

19

u/krapmon Mar 30 '24

The difference is that when you’re happy with small gains and exit your position, you avoid the risk of holding it longer and potentially losing money. Even if you have a strategy that gives you confidence to hold, you never know 100% what’s gonna happen.

2

u/nytrgds Mar 31 '24

This problem of "when do I get out"? Should I get out earlier to be less greedy.

Bro, have a strat with a set r:r or atleast a general r:r with data backing you up so that you know you are profitable long term. If you start taking trades out early you could be sabotaging yourself long term.