Topic: To day traders, what percentage do you think is better to make as profit daily - page 2. (Read 652 times)
September 22, 2024, 09:26:07 AM
A long time ago when I was at the beginning of my trading, the advice from a trader I followed was 1%-2% by only using 10% of the total capital that we have, and I followed this, and honestly sometimes this works but not a few also do not achieve it because the time to open a position is also quite decisive, and also consistency is often difficult to do especially when you see an opportunity to get more then usually increase the target but the opposite happens.
September 22, 2024, 08:20:53 AM
First and foremost, it's highly impossible for a day trader to gain profits on a daily basis. But losing their funds daily could always be possible most particularly for inexperienced traders.
Now talking about the percentage, we all have different preference. But in general, whether its 3%, 5% or even 10% is still reasonable enough, as long as you can afford losing that amount and you are spending your extra money in trading that you are comfortable to lose.
Now talking about the percentage, we all have different preference. But in general, whether its 3%, 5% or even 10% is still reasonable enough, as long as you can afford losing that amount and you are spending your extra money in trading that you are comfortable to lose.
September 22, 2024, 06:26:23 AM
Let us say you have $5000 in your account. You only move $500 to an exchange for day trading which is 10% of your money. I think many traders can use 10% for trading, although they can lose it if because trading is very risky.
You use 1x for bitcoin or less than 1x by not using all the $500 to trade at once. Let us say just $150 for altcoins.
What percentage of interest do you think would be good for you to close the position?
I think that if you have $5000 in your account and use $500 for daily trading, that will be completely meaningless. Your daily trading at least should cover your daily expenses, right? You need at least 10% profit daily from $500 but that's very risky and if we see the market, top cryptocurrencies sometimes perform steady rise and fall between 2-3%. Making a 2-3% from $500 is not trading, it's playing cheap games. To my opinion, if someone trades daily, they should have a big capital, like 50K USD and should aim very low profit, like 0.2%-0.5% or sometimes higher, depends on the situation of course. You use 1x for bitcoin or less than 1x by not using all the $500 to trade at once. Let us say just $150 for altcoins.
What percentage of interest do you think would be good for you to close the position?
September 21, 2024, 03:26:47 PM
Anywhere between 5-20% is good because cumulatively, you get around 100% weekly from your trade. If you're really consistent with such profit margin, you'd easily hit 400%+ in monthly ROI from your trades is a performance because not many traders are able to make consistent profits. Also worth noting that this ultimately depends on the size of account abd the size used per trade.
You can open a 1x short position which is almost the same as selling options since you're expecting the price to go lower.
I don't use leverage because when I trade, I only trade in Spot. Without leverage, I can not open short positions but I don't mind about it. I can use my own money, wait for price change and buy to get profit from price bounce. It means I use my own money to trade with Long position, but saying Long position is not too accurate as Long is for leverage trading. It is more accurate to say, I only trade by buying low, selling high, in Spot trading.
You can open a 1x short position which is almost the same as selling options since you're expecting the price to go lower.
September 21, 2024, 11:18:23 AM
Things can differ based on a user's location and the type of trading they are into. If someone is trading daily in the spot market, I believe $20 to $30 a day with $500 is more than enough, if you want more, you should increase your capital. If someone is earning $20 a day from spot trading with that capital, I think they are successful as a trader considering they are making their trades very carefully and aren't losing large funds by making reckless decisions.
As said by some other users as well, the daily profit target of a trader would also depend on where they live. If you live in a third-world country where the cost of living is generally lower than in developed countries, you wouldn't need a lot of money to spend a stress-free life, so maybe like $10 to $15 a day would be good enough, it won't make someone rich but they can live their life easily with it.
Being successful in trading is when we hit our desired target profits and I think it doesn't really matter if on what ways we achieved it (i.e. through luck, skills but being reckless, etc...). Of course to be careful and being strategic is always better than the other way around. This makes us to increase our chances of earning. Living a stress-free life is actually not about spending more money but it was the opposite. Earning money (lots of it) is stressful, however once we do and then we also use it to satisfy our cravings, the stress that we are feeling can also be quenched. Guess it only depends if which among the two scenarios we prefer. As said by some other users as well, the daily profit target of a trader would also depend on where they live. If you live in a third-world country where the cost of living is generally lower than in developed countries, you wouldn't need a lot of money to spend a stress-free life, so maybe like $10 to $15 a day would be good enough, it won't make someone rich but they can live their life easily with it.
September 21, 2024, 05:00:24 AM
Quote
Most traders use 10x leverage due to counterparty risk. Say they have $1,000,000 in capital, they rather just deposit $100,000 to the exchange and use 10x leverage and just deposit/withdraw as the trade moves against/towards profit and they only can lose $100K if the exchange goes bust.
The liquidation map shows that 100x leverage is most vulnerable to market liquidations in both sides, up or down, Long or Short.https://www.coinglass.com/pro/futures/LiquidationMap
If I am trading bitcoin, I prefer to use not more than 12x leverage but which I still think to be too much. I am planing to cut it down to 3x leverage which I think is better.
September 21, 2024, 03:21:41 AM
I mean, if you just use small margin compared to your overall margin account just $3 of you're entire margin account worth of $1000, you're pretty much safe, the PNL percentage might be different but when we are trading we talking from the perspective of many USDT we lost or profit.
it's after all just a game of number. $5 with 100x leverage and $20 for margin buffer is the same as $25 using 20x leverage with $0 margin buffer in term of risk.
I would say that doing those type of risk diversion isn't really that much of a big difference and doesn't really do much in the end. I am not saying that you could be wrong, you could both be wrong or you could be right we wouldn't know and either doesn't mean anything good just because you are doing it, you should not worry about using which method and instead focus on doing the right thing with what you are dealing with.it's after all just a game of number. $5 with 100x leverage and $20 for margin buffer is the same as $25 using 20x leverage with $0 margin buffer in term of risk.
I think it is going to be something that is going to get some good results one way or another. I think it has to be something that is getting a good result either way if you are picking the right direction and losing if you pick the wrong decision as well. I think we should be happy that we can make so much money with so little in the end and could profit so much.
September 20, 2024, 03:29:16 PM
You can't imagine how much money you'll earn in the end if you aim only 2% every day. I even created a thread about this case with the daily investment compound calculator...
It's just a wish, not a reality) Each of us can set any kind of plans, but they cannot always be fulfilled. As for trading, the main thing is to avoid losses, and the profit obtained as a result of trading can be any.It is not easy to do day trading because it requires good technical analysis skills and how to predict prices from the charts that are already available.
Indeed, the plan will not always be successful and there will definitely be failures, but with good planning and management it will be a strategy that will direct the trade to the profits that will be obtained.
It's also about the upper and lower limits, so there's a limit to how much loss you can afford and how much profit you can make.
September 20, 2024, 01:59:12 PM
3%-5% is great I think. That's if you are lucky. People usually chase 10-20% gains and that's why they end up being losers because they don't know when to say enough. Still though, I'd rather do the hodl stuff because trading is pretty stressful. If you get trapped on the wrong side of the trade, you'll have to wait for some. That's why day trading doesn't make much sense to me. You can wait 2-3 years on the same position and can make much more than trading.
Exactly, I would say that what should actually be focused on in trading is not about how much daily profit you get but how consistently you get that profit, because even if for example we only target a profit of 3-5% as you said but if it happens consistently then of course the amount will also be large. So even if for example you have a large enough capital, don't focus on getting a profit of 100% of the capital, it is very difficult and too risky, you can get a profit of 3-5% quite easily with a large amount of capital, it is much better than going out with a loss.On the other hand overall yes I can also say that daily trading is really stressful, very draining energy and mental, especially if we are already trapped in emotions. Therefore I also prefer other options such as investing in spots with a period of several years ahead.
September 20, 2024, 10:52:22 AM
You can't imagine how much money you'll earn in the end if you aim only 2% every day. I even created a thread about this case with the daily investment compound calculator...
It's just a wish, not a reality) Each of us can set any kind of plans, but they cannot always be fulfilled. As for trading, the main thing is to avoid losses, and the profit obtained as a result of trading can be any.
September 20, 2024, 10:48:11 AM
With higher leverages, your position will be liquidated with smaller price changes. There are different margin order types, Cross and Isolated. Depends on margin type, your position will be liquidated with capital used for that position with Isolated margin or whole capital will be liquidated with Cross margin.
With lower leverages, you have better ability to control risk and avoid liquidations but it does not mean 10x, 5x leverages can give you guarantee that your positions will never be liquidated. Even 2x leveraged position can be liquidated to so if you are not afford to lose trading capital, don't use leverages.
When you use small trading capital but leverage it with high margin, you will more easily lose that fund and repeat it many rounds, you will also lose big trading capital. I meant with high leverages, it won't help you to avoid big loss if you do that mistake many times.
The issue is that people who use leverages do not understand "how much" it is required for their position to be liquidated. They think that with just a big portion like a 5% drop then it would be gone, but in reality it's more like 1% if you have a 100x leverage, and it goes 1%+ on the wrong direction. They do not realize that and they think that they will be fine and because of that they make a lot of problems as well.With lower leverages, you have better ability to control risk and avoid liquidations but it does not mean 10x, 5x leverages can give you guarantee that your positions will never be liquidated. Even 2x leveraged position can be liquidated to so if you are not afford to lose trading capital, don't use leverages.
When you use small trading capital but leverage it with high margin, you will more easily lose that fund and repeat it many rounds, you will also lose big trading capital. I meant with high leverages, it won't help you to avoid big loss if you do that mistake many times.
I believe that we are going to end up with some issues if we are not careful and that how much should be known beforehand. I cannot believe that we are going to see this type of situation being easy for anyone. I know that it is going to take a while but that doesn't mean that we are going to see this be understood by everyone that commonly unfortunately. The reality is that we are going to see something that will get bigger problem for a lot of people and we can't really see this get any type of mistake fixed, people will keep making these problems.
September 20, 2024, 10:21:34 AM
I do at least 10-20 percent of my capital because I do not have a lot of time to do a trade I make up at least a position and mark up those possible coins have the potential to trade, you don't need even to reach at least a 100 percent of your trade to make a call for a day well possible to have this but its very exhausting in my part I just did this one time, so having that is quite enough for me. I recommend to having a tracker with all of your trades, exchange have this but of course its good if you have too just for your personal checking with the trades if still on gain or not.
September 20, 2024, 01:31:07 AM
it depends on the strategy, some people like to do 100x leverage but significantly lowering their margin and put large stop-loss which sometime exceeds 1000% because the margin is low, maintaining such low margin is easy even if market turning worse.
usually the people that used 10x leverage are people with big enough margin and also want to boost their profit so it's understandable that majority of people prefer 10x, moreover using 100x is scary event though with proper trade, we can prevent too much loss, I personally though always use 2-5x leverage, so if market crashes, I can just wait it out, since the liquidation price aren't too thin so my money is safe.
With higher leverages, your position will be liquidated with smaller price changes. There are different margin order types, Cross and Isolated. Depends on margin type, your position will be liquidated with capital used for that position with Isolated margin or whole capital will be liquidated with Cross margin.usually the people that used 10x leverage are people with big enough margin and also want to boost their profit so it's understandable that majority of people prefer 10x, moreover using 100x is scary event though with proper trade, we can prevent too much loss, I personally though always use 2-5x leverage, so if market crashes, I can just wait it out, since the liquidation price aren't too thin so my money is safe.
With lower leverages, you have better ability to control risk and avoid liquidations but it does not mean 10x, 5x leverages can give you guarantee that your positions will never be liquidated. Even 2x leveraged position can be liquidated to so if you are not afford to lose trading capital, don't use leverages.
When you use small trading capital but leverage it with high margin, you will more easily lose that fund and repeat it many rounds, you will also lose big trading capital. I meant with high leverages, it won't help you to avoid big loss if you do that mistake many times.
I mean, if you just use small margin compared to your overall margin account just $3 of you're entire margin account worth of $1000, you're pretty much safe, the PNL percentage might be different but when we are trading we talking from the perspective of many USDT we lost or profit.
it's after all just a game of number. $5 with 100x leverage and $20 for margin buffer is the same as $25 using 20x leverage with $0 margin buffer in term of risk.
September 19, 2024, 07:48:06 PM
Let us say you have $5000 in your account. You only move $500 to an exchange for day trading which is 10% of your money. I think many traders can use 10% for trading, although they can lose it if because trading is very risky.
You use 1x for bitcoin or less than 1x by not using all the $500 to trade at once. Let us say just $150 for altcoins.
What percentage of interest do you think would be good for you to close the position?
You use 1x for bitcoin or less than 1x by not using all the $500 to trade at once. Let us say just $150 for altcoins.
What percentage of interest do you think would be good for you to close the position?
Things can differ based on a user's location and the type of trading they are into. If someone is trading daily in the spot market, I believe $20 to $30 a day with $500 is more than enough, if you want more, you should increase your capital. If someone is earning $20 a day from spot trading with that capital, I think they are successful as a trader considering they are making their trades very carefully and aren't losing large funds by making reckless decisions.
As said by some other users as well, the daily profit target of a trader would also depend on where they live. If you live in a third-world country where the cost of living is generally lower than in developed countries, you wouldn't need a lot of money to spend a stress-free life, so maybe like $10 to $15 a day would be good enough, it won't make someone rich but they can live their life easily with it.
September 19, 2024, 04:59:24 PM
Let us say you have $5000 in your account. You only move $500 to an exchange for day trading which is 10% of your money. I think many traders can use 10% for trading, although they can lose it if because trading is very risky.
You use 1x for bitcoin or less than 1x by not using all the $500 to trade at once. Let us say just $150 for altcoins.
What percentage of interest do you think would be good for you to close the position?
You use 1x for bitcoin or less than 1x by not using all the $500 to trade at once. Let us say just $150 for altcoins.
What percentage of interest do you think would be good for you to close the position?
Closing the market will only depend when my analysis is invalidated and won’t go further in the direction I’ve analyzed it to follow. My profits will depend on the lot size I’m using and how much I’m willing to risk to get that amount out of what I’ve invested among my total investment. I won’t say because I’m risking a particular amount and what I need for that day is enough for my expenses will trigger to close the trade. My analysis supersedes all and if it’s yet to be invalidated, I’ll continue to hold the trade until it reach the set TP or will leave the market immediately there’s an annul to my prediction that the market is moving on. With such a mindset, you’ll be able to handle your psychology more and win in big trades which sometimes comes once in a while.
September 19, 2024, 04:59:08 PM
Let us say you have $5000 in your account. You only move $500 to an exchange for day trading which is 10% of your money. I think many traders can use 10% for trading, although they can lose it if because trading is very risky.
You use 1x for bitcoin or less than 1x by not using all the $500 to trade at once. Let us say just $150 for altcoins.
What percentage of interest do you think would be good for you to close the position?
Day trading is something that not everyone would really be able to get a hold of or something that could be able to effectively be profitable and thats why we do have those traders who are long term ones or could be swinging type. Capital management is something that would really be crucial or something that you will really be needing up because you wont really be able to survive this volatile space if you arent that mindfulYou use 1x for bitcoin or less than 1x by not using all the $500 to trade at once. Let us say just $150 for altcoins.
What percentage of interest do you think would be good for you to close the position?
about on the things you've been doing. PRofit target? 5-10% a day would be the max and 2-3% if you would really be that conservative or not really that a risk taker. It will really be just that depending on how well
you do make up trading and it will really be always reflecting out on how well you do make trades and this is something that will differ into each trader. This would really be survival of the fittest and if you dont trade well then that would be a sure loss for you.
September 19, 2024, 04:14:52 PM
You use 1x for bitcoin or less than 1x by not using all the $500 to trade at once. Let us say just $150 for altcoins.
What percentage of interest do you think would be good for you to close the position?
it depends on two things; the leverage and your LOT size for every trade. Repositioning is also very important in this case as well... Let's assume you set your lot size to be 0.1 for every entry, and your stop loss stands in a close position just below the trade ( assuming the market was bullish), you can make atleast 5 dollars before there's any retracement... This method is called scalping What percentage of interest do you think would be good for you to close the position?
How much you can make as daily profit depends solely on how often you opened a position... Mind you, it's possible to begin a trade in the hourly time frame, hoping to jump in for some profits but it retraces after some minutes - that's a huge loss for you on that one.. it maybe over $20 or more, depending on how you set your stop loss.
September 19, 2024, 06:00:07 AM
it depends on the strategy, some people like to do 100x leverage but significantly lowering their margin and put large stop-loss which sometime exceeds 1000% because the margin is low, maintaining such low margin is easy even if market turning worse.
usually the people that used 10x leverage are people with big enough margin and also want to boost their profit so it's understandable that majority of people prefer 10x, moreover using 100x is scary event though with proper trade, we can prevent too much loss, I personally though always use 2-5x leverage, so if market crashes, I can just wait it out, since the liquidation price aren't too thin so my money is safe.
With higher leverages, your position will be liquidated with smaller price changes. There are different margin order types, Cross and Isolated. Depends on margin type, your position will be liquidated with capital used for that position with Isolated margin or whole capital will be liquidated with Cross margin.usually the people that used 10x leverage are people with big enough margin and also want to boost their profit so it's understandable that majority of people prefer 10x, moreover using 100x is scary event though with proper trade, we can prevent too much loss, I personally though always use 2-5x leverage, so if market crashes, I can just wait it out, since the liquidation price aren't too thin so my money is safe.
With lower leverages, you have better ability to control risk and avoid liquidations but it does not mean 10x, 5x leverages can give you guarantee that your positions will never be liquidated. Even 2x leveraged position can be liquidated to so if you are not afford to lose trading capital, don't use leverages.
When you use small trading capital but leverage it with high margin, you will more easily lose that fund and repeat it many rounds, you will also lose big trading capital. I meant with high leverages, it won't help you to avoid big loss if you do that mistake many times.
September 19, 2024, 01:29:52 AM
The liquidation map shows that 100x leverage is most vulnerable to market liquidations in both sides, up or down, Long or Short.
https://www.coinglass.com/pro/futures/LiquidationMap
https://www.coinglass.com/pro/futures/LiquidationMap
it depends on the strategy, some people like to do 100x leverage but significantly lowering their margin and put large stop-loss which sometime exceeds 1000% because the margin is low, maintaining such low margin is easy even if market turning worse.
usually the people that used 10x leverage are people with big enough margin and also want to boost their profit so it's understandable that majority of people prefer 10x, moreover using 100x is scary event though with proper trade, we can prevent too much loss, I personally though always use 2-5x leverage, so if market crashes, I can just wait it out, since the liquidation price aren't too thin so my money is safe.
September 18, 2024, 09:46:40 PM
I think Arthur Hayes, the CEO of Bitmex, said that although they have 100x leverage, most traders actually only used like 10x or 12x or something like that.
Because when traders go too extremely with 100x leverage, they are no longer traders but already become gamblers. Your memory works like charm and the report from BitMEX says exactly like your memory.50% of leverage users don't go more than 13x leverage and 60% of leverage users don't use leverage higher than 20x and only 30% of users go with above 30x leverages while 5% of them use 95x+ leverages for Long positions. Nearly similar figures for traders with Short positions and leverages.
BitMEX Leverage Statistics, April 2019
Quote
Most traders use 10x leverage due to counterparty risk. Say they have $1,000,000 in capital, they rather just deposit $100,000 to the exchange and use 10x leverage and just deposit/withdraw as the trade moves against/towards profit and they only can lose $100K if the exchange goes bust.
The liquidation map shows that 100x leverage is most vulnerable to market liquidations in both sides, up or down, Long or Short.https://www.coinglass.com/pro/futures/LiquidationMap
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