prochargedmopar wrote:aliassmith wrote:Skill VS. Capitalization
How can you make a living being a trader?
The first step is to be able to actually make a profit. We will assume you can do that to some extent. So what is your skill level? Its how many % you make on average per week or month.
On a weekly/monthly basis you must make some positive return on Your capital. Unless you are capitalized in the millions then you will need to make .5% a week .
I don’t know how much money you want/need so I’ll make Up some numbers for a 6 figure income.
Scenario: Let us say I need a gross gain of $150,000 a year to be comfortable. We will also say that I only trade 48 weeks out of the year.
The skill level will determine the capitalization. If a trader trades For the one year period and never compounds we can look at the following numbers.
Skill level (% gain per week)...Yearly gross gain %....Capitalization (Account size needed rounded up)
.5%.................................24%......................$625k
1%..................................48%.......................$313k
2%..................................96%.......................$157k
3%..................................144%.....................$105k
4%..................................192%.....................$79k
5%..................................240%.....................$63k
10%.................................480%.....................$32k
20.83%.............................1000%....................$15k
So with my acct I need to make about 200% a week,
Give or take.
LOL.
I speak from first hand knowledge on this one. You think like that and you will blow your account out faster then you could imangine. I know you were joking.
But pro in all a seriousness. Your account is at what 800. Aim for 1-5% a week for the next month. If you can do that then look at trying for 5-10% a week. Then 10% a week for 4 weeks. If you were successful all 3 months, it wont be about what you made, but what you did mentally. But your account would also be up 65-100% (1,300-1,600). Then with the final 3 months aim for 10-20% a week, 120-240%. By the end of the year your account will easily be between 3,000-6,000. Plus you will have built the mental framework to be profitable and consistent and confident in your ability.
Or you know the other option. Continue the same and 6 months from now we will be having the same convo. I know you can do it pro