Let me throw out a money making scheme. For the sake of the thread, let's just say the whole thing is hypothetical, so we don't have to deal with the realism aspect of this plan.
First, you need 25k in order to day trade. Then you find a volatile stock that's around 200 dollars and you throw all 25k at it, so you have 125 shares. Every day, you wait until you feel it's at a high point, sell all your stock, wait for it to sink 1 dollar, then buy back your stock back. I'm setting the bar at 1 dollar since it should be pretty easy to find a swing of 1 dollar. (Again, hypothetical.) A couple days later, you can afford 126 shares. Eventually, you'll be able to up the number of shares bought every day.
I've done the math, and if you do this every day, you will be able to double your money every year. At the end of 10 years, you'll be a multi-milllionaire.
The practical complications are obvious: not being able to do this every day, having to buy/sell a high amount of stock can be nerve wrecking, something going horribly wrong with the stock price, etc. But in the hypothetical world, is there anything about this plan that doesn't work?
On paper it's good. But,
What happens if your stock goes down and down and down? Will u be diligent and ballsy to hope it'll recover?
Threads like this remind my why 4chan shutting down is a good thing
>>1546644
Yes, basically. Any other issues with this plan?
I ask because I decided to try this out, starting this week. I've made three trades so far, gaining $1.10, $1.30 and $2.10 each trade. I'm still sub-25k, so that's all I have for this week. I wanted to know what roadblocks I can anticipate having if I continue to do this.
I actually have 2 accounts, one where I do this and one where I don't. The gain% between the two accounts is widening at a pretty surprising rate.
>>1546672
Sample size n=3 is really small to base this off of.
Most day traders use leverage to increase returns.
Also you may need a bit more experience in deciphering market news/historic data to help determine if a security is mispriced. A volatile stock at 200 may be mispriced and due for a correction.
How are you picking your stock? You may want to start with a simpler strategy like mean-reversion or even event-driven.
How familiar are you with leading indicators?
>>1546672
>Any other issues with this plan?
How about it works great for 9 years, and then a market crash wipes out most or all your gains?
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