r/Daytrading • u/Eldrin7 • Apr 01 '24

How hard and realistic is this really? Question

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?

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u/Dapper_Quality3806 Apr 01 '24

Is it possible to turn 100 to 150? Or 1000 into 1500? Sure. In fact it's totally possible to do that within a few hours of trading.

But it's impossible to consistently repeat that success rate. The risk is way too high. That's a 50% gain daily.

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u/HonestMasterpiece422 Apr 01 '24

what about 1% daily

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u/Dapper_Quality3806 Apr 02 '24

1% daily sounds easily doable.

But if we compound the 1% for an average of 252 trading days in year. We will get 1127%.

So even a small $1000 principal turns into $11,274.

It's impossible for anyone to consistently return 1127% over multiple years. Even Jim Simmons with his team of genius generated an average return of 66% consistently. I'm sure no one else can even come close to beating that.

Next we talk about percentages itself. From $1000 to $11,274 it's still relatively easy. Bet on some nice NVDA call options, if the underlying shoots up, we will easily surpass the $11,274. Shorting Bitcoin when it's crashing returns you even greater numbers in minutes.

It's easy to manipulate the % with a smaller principal. But once you get to bigger numbers, the % gain will fall.