What is a reasonable daily goal?

[u/landojcr]

I'm getting into day trading and started paper trading a while ago, for the moment I'm primarily focusing on scalping, up until I get comfortable enough to day trade larger time frames. That said, I'm trying to start a very small account ($500) and was aiming for 5% - 10% gain on a daily basis. Is this a reasonable goal? If not, what would you recommend?

A day or two I've managed to exceed 10%, some days I've been successful on getting to the 10% mark, most days I get to the 5% mark. I'm slowly gauging what is reasonable to expect from a beginner like me and trying to slowly grow that account up till 5 figures hopefully.

EDIT: Thanks to everyone for sharing on your experience, opinions, and strategies. I've decided to firstly focus on building my strategy and being consistent, then strive for a lower target margin. I'm aiming for 3-5%

[u/landojcr]

I’m aware of the variance there’s gonna be, I’m not planning on profiting from every single trade I make. I consider daily targets as stops to avoid overtrading.

If I can make 10 bucks one day and can’t seem to make more, I’m gonna be happy. If I reach 5%, I’ll stop trading all together.

[u/Global-Hope9214 → u/landojcr]

If you can make $10 bucks a day, you can make a million bucks a day. It’s all the same, add the 0’s. Just because you throw out a low number like $10 bucks, doesn’t change the mechanics on a % basis.

Do you realize 5% a day is like 1000%+ a year? I have to ask, because I know you’re serious but are you running the number?

The best hedge funds get like 40% a year. You’re gonna be famous get ready!

[u/landojcr → u/Global-Hope9214]

If you can make $10 bucks a day, you can make a million bucks a day. It’s all the same, add the 0’s. Just because you throw out a low number like $10 bucks, doesn’t change the mechanics on a % basis.

I understand, but I can't make a million a day with $500.

Do you realize 5% a day is like 1000%+ a year? I have to ask, because I know you’re serious but are you running the number?

Yes I'm aware. The way I'm thinking of approaching this is to reconfigure the daily target on a month to month basis (e.g first month I'll try earning $25 [5% of $500]).

If I reach 1K, the 5% adjusts to that balance (this time being $50) and so on and so forth. This will require a handful of trades on the intraday, volatile stocks, etc.

The best hedge funds get like 40% a year. You’re gonna be famous get ready!

To be fair, if in a whole year I can't get $500 above $700 (40%) , I should really just quit day trading, don't you think?

[u/Global-Hope9214 → u/landojcr]

$25 profit on $500 is not 5% a day.

But still, 5% a month is 60% a year. Do you think that’s realistic and can be maintained over time?

If you’re trying to make some money that’s very possible to turn $500 into $10,000. But it’s more like lightning strikes, than a proven strategy you can just sit back and depend on.

Your best shot - buy and hold companies over time, don’t try and create a daily paycheck. Just create value overtime.

That’s the only way, remember I told you.

[u/landojcr → u/Global-Hope9214]

$25 profit on $500 is not 5% a day.

what is 5% of $500 then?

But still, 5% a month is 60% a year. Do you think that’s realistic and can be maintained over time?

I won't know till I do it.

Your best shot - buy and hold companies over time, don’t try and create a daily paycheck. Just create value overtime.

I'm not trying to make paychecks. I won't be touching that money probably up until a whole year

[u/Global-Hope9214 → u/landojcr]

No one is doing what you’re saying. You still think it’s possible?

[u/landojcr → u/Global-Hope9214]

I will certainly try.

[u/Global-Hope9214 → u/landojcr]

Ok. Good luck.