Noob QuestionHere :D

is 10 to 20 dollars profit a day achievable for a beginner?

1 Like

No. You will do well not to blow your account within 3 - 6 months. I suggest that you commit to the long haul or drop it now.

thank you sir.

Its achievable if you have a consistent strategy and this generates sufficient trades per day.

So for example, if your system generates 2 trades per day and has a 50% win rate and a 1:2 risk:reward ratio and you risk only $10 of your account capital per trade, you will have a profit of $10 per day. This will comprise 1 loser which costs you $10 and 1 winner which generates $20.

Assuming your $10 risk is only 1% of your account, you would only need a $1000 account to do this.

However -

  1. a 1:2 r:r is ambitious
  2. in day-trading, costs per trade from spread etc. are a significant overhead
    Therefore both a lower r:r and a larger account would be preferable.
2 Likes

Nope, not possible for a newbie, except you get a trading system from an expert and you learn how to apply it with serious risk management system.

1 Like

as long as you have your rules set in place and follow them, then its very possible

10-20 Dollars a day is only possible if you’re dealing MASSIVE cash

What do you base this on?

how much is massive lol

Hi LoyT,
You have asked an open-ended question. If you wish to have a high degree of certainty about making $10 to $20 per day as a beginner, for a 50 week trading year with 5 days per week that is about 250 trading days per year, so between $2,500 and $5,000 per year profit. You can make that return easily by depositing $500,000 in a bank that pays you 1% interest per year.

But I rather suspect if you had $500,000 you would not be very interested to make $5K per year. The answer to your question is to play with trading plans and see what that realistically means. First, how much capital do you have to commit to your trading career or hobby that would not hurt your lifestyle? Perhaps $2,000?
Next with $2,000 capital how many trades would you be willing to enter if they all lost money? If you stake $200 per trade, you will blow your account out within ten losing trades. In my short trading history some years ago, I managed 14 losing trades on a row. So let’s say that may be up to 50 losing trades before you wipe out the account. That means an average risk of $2,000 / 50 or $40 per trade. Next, you choose a trading strategy. You decide that your strategy is that you will never take a trade unless your risk/reward ratio is 2:1, and your lowest acceptable success to trade ratio is 60%. That means you win six trades out of ten, where a win is 3 times your stake, and a loss is one times your stake. So over 10 trades, 6 of them win $120 (total $720) and four of them lose $40 (total $160). Over the ten trades, you are $560 up. To earn $20 per day, that $560 profit represents 28 days x $20. So you would need to enter those ten trades within a 28 trading day period (6 weeks). On paper yes it is possible to make $20 per day with a $2,000 capital pot. However if you were to achieve this, that is about $400 per month over $2,000 capital or about 25% per month. You would double your money about every three and a half months, and would likely be in the top one in a thousand traders.

Best way to find out is to try to earn $2 per day with a $200 account, and if you can consistently do that, then slowly increase your stakes.

2 Likes

For a newbie? 10-20 is not that easy with petty cash.

More seasoned traders can do that easily, but for their first trades? Yeah, they need a huge leverage or amout of funds for it

Ok, not “MASSIVE”, but above average for the newbie trader.

New traders should concentrate on only learning! Besides; traders need to count their profit ratio only based on the pips movements; not based on the $.

-10 to -20 easily achievable for a

BEGINNER

3 Likes