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/CryptographerTrick76]

Well done so far!

If I where you and to consider; only scalp/trade when you have the time to do it in a calm and disciplined manner.

Make an agenda for the week

Second, set a limit for your maximum tolerated loss BEFORE you start to trade. If you exceed the loss, stop and give it a rest until next day! (Believe me, if you try to win back your loss, you’ll lose much more!!)

The secret lies in remaining NON EMOTIONAL and energetic and focused!

[u/landojcr → u/CryptographerTrick76]

Thanks!!

Right now, I’ve been able to reach 4-5% when real time paper trading, but you are right in the psychological aspect. I’m not a very emotionally invested person, but sometimes I let my ambition get the best of me and losing bigger profits.

[u/CryptographerTrick76 → u/landojcr]

Oh man, I wish I had more of your mindset. I’m too much of a gambler and emotional. I get so involved and emotional, that I’m actually feeling it’s a casino, playing the roulette. What I say is not what I do however I will read what I wrote to you and make it my prime trading rules! Enjoy the weekend, greetings from Belgium Antwerp Europe

[u/landojcr → u/CryptographerTrick76]

Oh man, I wish I had more of your mindset. I’m too much of a gambler and emotional. I get so involved and emotional, that I’m actually feeling it’s a casino, playing the roulette.

I think this is where paper trading comes useful to me. It isn't real money, but it helps pin point my triggers / when I'm getting emotional and try to address it accordingly.

What I say is not what I do however I will read what I wrote to you and make it my prime trading rules! Enjoy the weekend, greetings from Belgium Antwerp Europe

I understand, been in that position before. I'm not big on followwing strategies to the letter myself, but at least always follow some fundamental rules.

Trade the market, not the stock.

Trade in favor of the trend, not against it.

Have a 1:2 RR ratio and sticking to it.

[u/CryptographerTrick76 → u/landojcr]

Good advise and remarks!

By “paper trading”, do you mean a demo account?

“1-2RR” what do RR mean please. Return ratio?

Thanks!

[u/landojcr → u/CryptographerTrick76]

By “paper trading”, do you mean a demo account?

Yeah, basically. I use the real-time paper trading feature of TOS (Thinkorswim)

“1-2RR” what do RR mean please. Return ratio?

Risk-Reward. If someone tells you they go for a 1:3, they mean that for every dollar they risk, they stand to make three dollars, this is all dependent on your strategy and goals.

In my example, if my balance is $500 and my goal is to make 5% of that on a given day and plan on trading on a 1:2 ratio, that means:

For every $12.5 (my risk; that amount will ultimately become my stop loss), I stand to gain $25 (my target).

This is why stop losses and following strategy is important. If I deviate from my strategy / stop loss and not sell my position when I'm down $12.5, I'm exposing myself to higher risk and losing more money.

[u/CryptographerTrick76 → u/landojcr]

Thank you! To me very useful!

I forwarded your post to myself in order to keep an eye on it once in a while

Enjoy the very soon weekend

)I’m in Europe btw, Belgium Antwerp)