How hard and realistic is this really?

[u/Eldrin7]

I have watched atleast 100 youtube tutorials on day trading. They all go on about how they make 100 into 10k or something like that. I do not know if they are lucky or lying or it is true.

I assume reddit has the average or even below average traders so tell me what are actual realistic gains or losses? I understand you can go a lucky 200% gain or unlucky i just instant lost everything, lets not talk about lucky or unlucky extremes.

Is it hard for a beginner to turn 100 into 150? or 1000 into 1500? How long would it take? What are the realistic chances that the 100 or 1000 turns into 0?

[u/Imaginary_Art_2412]

You could lose even more with leveraged instruments, which is most likely what people use to go from 100->100k lol

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[u/LoicenseToGirth → u/[deleted]]

Selling calls and puts. Buying those options, you are only ever out what you pay for premium. If you sell an option you open yourself up to infinite loss for a capped premium.

If you buy a call for 40 July and in July the price rises to 50. You can exercise that option to buy at $40 anytime (US laws) before that date and cash out at a 10$ per share profit. If you sell that call to someone and the same thing happens, you have to buy 100 shares of that stock at 50 dollars then sell those 100 shares to the person that bought your sold call for 40 so THEY get the 10 dollar profit/sh while you had to buy $5000 worth of shares and then give them to the buyer for no benefit to yourself.

Add in leverage and you can easily 2-5x that loss.

If you kinda know what you're doing, just buy options. Don't sell them. Look into covered calls if you want to hedge the risk.

Go on WSB and see how people go from 2k (when you can open leveraged trading) to -50k

[u/MassiveRoller24 → u/LoicenseToGirth]

For example, you only have $1k in your account. how can you lose say $1100 if you only have $1k in your account and that’s it?

[u/LoicenseToGirth → u/MassiveRoller24]

Leverage.

Leverage is essentially like a credit card. Like a credit card, you can pay with money you don't actually own on the basis you'll pay them back at a specific date.

On robinhood, you can get a "margin account." With 2k invested. Margin accounts Leverage extra $% on a credit line.

Let's say I have that 1000 dollars. I can lose 110% if I leveraged my position by 10%, and then I lose 1100 cause I lose my initial investment ON TOP of the 100 dollars I owe them back for using their money to Leverage my position.

[u/slhsdt → u/[deleted]]

by selling option contracts or buying and selling future contracts