This is a question I always get from interested individuals.
Like me after meeting Obi, most traders start here. Needless to say that the question is not only a wrong one but also it gets one classified as a noob. Don’t get me wrong, we all start somewhere. After all a new world of abundance has been unveiled to you. Before your mind’s eye are the Rolls Royce wraith and holidays in Bahamas. Yet that little whisperer in your head gets you to doubt. The voice says “ask him how much he can make in a day.” In other words the mind needs its doubts put to rest and a huge tombstone with a suiting epitaph erected there for memories’ sake. Stay with me, I promised you an answer.
You can make from $1 to $100,000. “In a day?” you ask. As for the $1, mjengo beats its. Also anything less than $30 in 20 trading days a month can hardly pay the bills. What about the $1,000-$100,000? Audi R8, anyone? BUT how much are you worth first? By that I mean your $worth and SKILLS worth.
Now a more realistic question would have been average weekly or monthly return. Which to answer I would give statistical average of the best and worst of said periods. All the while factoring the profitable and loss trades.
Back to the worth I hinted about, starting with the dollars. Basically in trading you use your capital to buy or sell currency or commodities in advance. However the movements up or down are very small. Usually 0.0001% in a second up to a minute. This can translate to 0.008-0.1% a day. Very minute, the word you are looking for is fluctuation. To profit from these fluctuation you need huge capital. This is achieved by using a fraction of your capital to borrow the rest and magnify the moves up to 100X. Hence the larger your capital the more you can borrow and make more.
Here is a typical scenario. With a $2,000 trading account, roughly kes 200,000 you can make up to $100 in a day. That amount can make you king of some circles. BUT, will you make it daily? Even with wallstreet puzzling skills I doubt it. How many matatus do you know that bring in constant chunks of mullah day in day out? The nature of any business is to manage well when in profit and limit the loss potential. That is why the projection of a day is wrong. You need long term outlook to let the law of averages work in your favour.
So, going back to my answer a SKILLED trader with $2,000,000 to $10,000,000 can make $100,000 in a day. Not necessarily every day, but with small losses and a good number of six figure days the fellow is rich. The numbers could be astronomical in our currency but that is all they are. Numbers. See I didn’t take away your dream car or your dream.
Now you may ask “How long will it take to be skilled?” See you in the next thread.