TheRumpledOne
6,529 posts
msg #63670
- Ignore TheRumpledOne
modified |
6/14/2008 12:06:43 PM
There's more than one way to answer that...
1) If you want to daytrade, then by rule you need $25,000 minimum
2) you can "beat the system" by holding over night. If you buy an RFR stock at/near the bottom, you can hold overnight, hopefully sell at the pop, and then buy back in near the bottom again. You can make up to 3 daytrades in a 5 day period in a margin account before being labeled a PATTERN DAY TRADER. Only use a daytrade to escape or to take huge profits.
3) if you have a cash account, you'll need to divide your funds because of the 3 day settlement rule. If you buy/sell on Monday, those funds should be available on Thursday. Tuesday funds on Friday and Wednesday funds on Monday. So if you have $1000 then you'll be able to trade 100 shares of SPF at a time.
Now, 100 shares doesn't sound like much but if you net 2% a day then the next time you trade you can buy 102 shares. With the magic of compounding, you'll be trading THOUSANDS OF SHARES within 6 months.
Account start value: 500.00
Daily % increase 2.00%
trade Month 1 Month 2
1 $510 $758
2 $520 $773
3 $531 $788
4 $541 $804
5 $552 $820
6 $563 $837
7 $574 $853
8 $586 $871
9 $598 $888
10 $609 $906
11 $622 $924
12 $634 $942
13 $647 $961
14 $660 $980
15 $673 $1,000
16 $686 $1,020
17 $700 $1,040
18 $714 $1,061
19 $728 $1,082
20 $743 $1,104
end of year: $57,944
Account start value: 500.00
Daily % increase 3.00%
trade Month 1 Month 2
1 $515 $930
2 $530 $958
3 $546 $987
4 $563 $1,016
5 $580 $1,047
6 $597 $1,078
7 $615 $1,111
8 $633 $1,144
9 $652 $1,178
10 $672 $1,214
11 $692 $1,250
12 $713 $1,288
13 $734 $1,326
14 $756 $1,366
15 $779 $1,407
16 $802 $1,449
17 $826 $1,493
18 $851 $1,537
19 $877 $1,584
20 $903 $1,631
end of year: $602,426
Account start value: 500.00
Daily % increase 4.00%
trade Month 1 Month 2
1 $520 $1,139
2 $541 $1,185
3 $562 $1,232
4 $585 $1,282
5 $608 $1,333
6 $633 $1,386
7 $658 $1,442
8 $684 $1,499
9 $712 $1,559
10 $740 $1,622
11 $770 $1,687
12 $801 $1,754
13 $833 $1,824
14 $866 $1,897
15 $900 $1,973
16 $936 $2,052
17 $974 $2,134
18 $1,013 $2,219
19 $1,053 $2,308
20 $1,096 $2,401
end of year: $6,123,101
You can see that consistant trading will grow your account. I know, I know, what about losses, being stuck, etc... well, what if you only make HALF THOSE YEARLY NUMBERS?
The biggest obstacle to achieving this is YOU! I don't know you personally, but, in most cases, people are in their own way. They are NOT satisfied with just making $10 a day starting out... they want more! They see what they could have made had they only traded some other stock. So then they hop around and miss more opportunities then they catch. Instead of being focused on their account they stick their nose in other people's business.
When you are trying to GROW an account, it's not the dollars, it's the PERCENTAGE! What do banks pay in a year? 2%? 3%? 4%? 5%? What's the reason you are not satisfied with making that in a day? Is waiting a year or two to have a BIG PILE OF CASH too long to wait?
Trading the same stock, day after day after day after day is BORING. AND IT SHOULD BE! You should be doing the same thing (that works) each and every time you trade. THIS IS BUSINESS. You don't have to be creative just consistant. You don't have to think, you have to execute.
If you want EXCITEMENT go to Vegas.
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