$100 a day

[aBadTrader]

For them ore experienced traders here; what sort of account size would you ideally be comfortable with in order to comfortably and emotionless create $100 daily.

Needless to say that my goal is to generate a side income from trading since I work from home anyway.

 

[Value Collector]

comfortable with in order to comfortably and emotionless create $100 daily.

$730,000 should do it.

 

[Roller_1]

I look at it this way..

$100 a day, approx 250 trading days a year = $25,000 a year

If you can make 25% a year as a beginner you are doing very well, so in that case you're looking at a $100,000 account. Probably not the answer you're looking for but it's closer to reality.

It's not a linear thing either every day, week or month probably be profitable remember.

 

[aBadTrader]

I look at it this way..

$100 a day, approx 250 trading days a year = $25,000 a year

If you can make 25% a year as a beginner you are doing very well, so in that case you're looking at a $100,000 account. Probably not the answer you're looking for but it's closer to reality.

It's not a linear thing either every day, week or month probably be profitable remember.

No no - that is the answer I am looking for. 100K sounds about right for small positions without worrying about over leverage or risk. The other fellow who said 730K - I would rather invest a huge portion of that into property rather than day trading haha

 

[Roller_1]

No no - that is the answer I am looking for. 100K sounds about right for small positions without worrying about over leverage or risk. The other fellow who said 730K - I would rather invest a huge portion of that into property rather than day trading haha

What do you mean by small positions?

If its for a side income, you won't be able able to day trade will you?

 

[aBadTrader]

What do you mean by small positions?

If its for a side income, you won't be able able to day trade will you?

I work from home anyway. Expenses extremely low. My mortgage payments are tiny, and I wholesale products from home. So I have more than enough time to dedicate to either day trading, learning to ride a Llama or filleting a sandwich

Oh and by small positions I mean risking, say 0.1% of my account. So on 100k that would be a 100 dollar risk per trade. that's what I consider ideal but then again, what I consider ideal is irrelevant since I am a fool!

 

[tech/a]

I work from home anyway. Expenses extremely low. My mortgage payments are tiny, and I wholesale products from home. So I have more than enough time to dedicate to either day trading, learning to ride a Llama or filleting a sandwich

Oh and by small positions I mean risking, say 0.1% of my account. So on 100k that would be a 100 dollar risk per trade. that's what I consider ideal but then again, what I consider ideal is irrelevant since I am a fool!

Crazy.

That's not how it works.
You need to have the 100K earning 25%
.01% of it wont do that----------

 

[aBadTrader]

Crazy.

That's not how it works.
You need to have the 100K earning 25%
.01% of it wont do that----------

Oh crap - can you elaborate on that further for me tech/a - if you have the time ofcourse? I genuinely want to hear your thoughts on the matter.

 

[Value Collector]

The other fellow who said 730K - I would rather invest a huge portion of that into property rather than day trading haha

Well you won't get your target $100 a day by putting $730,000 into an investment property.

 

[Value Collector]

I am not a trader, but the reason I suggested $730,000 was just based on a conservative earnings rate (due to the fact you are a beginner) and your target.

$100 / day = $36,500 / year.

Now, aiming to earn 25%pa as a beginner seems a bit high as a target, especially considering you said you wanted to do in "Comfortably".

Comfortably to me means, little or no leverage, not swinging at every pitch and not trying to shoot for the stars.

So given your beginner status and desire for comfort, I set an initial target earnings rate of 5%.

5% of $730,000 is $36,500 or $100 a day, (offcourse you still need to pay tax on that).

 

[Value Collector]

Oh crap - can you elaborate on that further for me tech/a - if you have the time ofcourse? I genuinely want to hear your thoughts on the matter.

I think he means you will need the whole $100K invested, and earn at least 0.1%(on the 100K) every day to meet your target.

Not have 0.1% ($100) of the total invested and the other 99.9% in the bank account only earning 1%pa.

 

[CanOz]

Well you won't get your target $100 a day by putting $730,000 into an investment property.

Really? We're making a net 5% on a property here in Brisbane. Thats over 20k per year before tax. Now of course after tax its less, but that depends on your income situation. Rental yields of 5% net aren't easy to come by, but they're out there.

I know some guys that post on here or have posted on here that return 4 figures a day and more on 100k + accounts. They are the exception and most of them are pros or have been pros. Minwa's record is on here as well.

Peter2's strategy swing / breakout trading returns over 30%. So 100k account there would yield 30k annually before tax. I know of a pattern trading strategy that returns between 10-20% annually, before tax.

If you think of it in basic % terms to begin with, focus on getting a profitable strategy that you can scale up, then think of what it can yield in dollar terms after tax and expenses.

Finally, think of what you could lose as well, risk adjusted returns are more critical than a dollar return daily. Also, drawdowns, they happen to us all eventually.

Are you going to make a living or pay the bills on a 10k account, short answer is very unlikely. But if you can make a steady return trading FX on a 5k account then there is a good possibility that you can scale it up.

 

[Value Collector]

Really? We're making a net 5% on a property here in Brisbane. Thats over 20k per year before tax. Now of course after tax its less, but that depends on your income situation. Rental yields of 5% net aren't easy to come by, but they're out there.

Are you talking residential? and when you say 5% net, are you talking about after rates, water, maintenance, agents fees, body corp, vacancy eg all holding costs.

I admit I haven't looked for a while, but most stuff I see around Brisbane and Sydney struggles to get 4% gross, then you lose 25% of that leaving you with a net return of some where around 3%, which would put you around $60/day.

 

[CanOz]

Are you talking residential? and when you say 5% net, are you talking about after rates, water, maintenance, agents fees, body corp, vacancy eg all holding costs.

I admit I haven't looked for a while, but most stuff I see around Brisbane and Sydney struggles to get 4% gross, then you lose 25% of that leaving you with a net return of some where around 3%, which would put you around $60/day.

Yes, we're at 5% after expenses, before tax. Its a 'dual key' property, 2 bedroom apartment with a studio below.

 

[Ves]

Yes, we're at 5% after expenses, before tax. Its a 'dual key' property, 2 bedroom apartment with a studio below.

Where is it?

Haven't looked for a few years, but was definitely possible to get a gross yield of over 8% in places in the Logan shire area, and also down the Ipswich corridor. Probably still can.

 

[Value Collector]

Yes, we're at 5% after expenses, before tax. Its a 'dual key' property, 2 bedroom apartment with a studio below.

I own a similar property in Brisbane, it's actually a duplex, when I bought it (years ago) it was earning 5.25% gross, which means it is less than 5% net.

Was the property you are talking about purchased at a net return of 5%, or is it only earning 5% after rental increases etc?

Also are you deducting a maintenance allowance from your rental, to allow for big expenses which will come, or just working it out on what you are spending this year.

to work it out correctly, I would deduct 25% of your current yearly rental income, and then compare it to what your current property value is, unless its in an area with low property prices you will probably find it is less than 5% yield once you factor in the replacement cost of the things that are wearing out, eg bathrooms, kitchens, roof, carpets, curtains etc etc.

 

[CanOz]

I own a similar property in Brisbane, it's actually a duplex, when I bought it (years ago) it was earning 5.25% gross, which means it is less than 5% net.

Was the property you are talking about purchased at a net return of 5%, or is it only earning 5% after rental increases etc?

Also are you deducting a maintenance allowance from your rental, to allow for big expenses which will come, or just working it out on what you are spending this year.

to work it out correctly, I would deduct 25% of your current yearly rental income, and then compare it to what your current property value is, unless its in an area with low property prices you will probably find it is less than 5% yield once you factor in the replacement cost of the things that are wearing out, eg bathrooms, kitchens, roof, carpets, curtains etc etc.

We include Body Corp. levies and some maintenance, but we do not include large 'capital' expenses such as bathroon or kitchen replacements. This is great idea though. The property is in an ideal location close to public transport and a main road into the city. We should get decent growth over the long term with it. The building is 30 years old but extremely well maintained. The property rents easy as it appears to have the pool all to its own, which it overlooks. I'd like to do some work to it, but for now well just let it tick along. We have not raised the rent as there is too much stock coming onto the market to justify it now......

The townhouse we're in on the other hand will yield around 3.8% net and its 10 years old and now we're finding out there are some maintenance issues and we'll be putting in extra levies to keep up the work on the lemon....We're building a house soon and we'll lease the townhouse out next year.

Very off topic now, but yeah, good yields are hard to come by.

 

[CanOz]

Where is it?

Haven't looked for a few years, but was definitely possible to get a gross yield of over 8% in places in the Logan shire area, and also down the Ipswich corridor. Probably still can.

South of Brisbane CBD approx 8 km.

 

[Ves]

South of Brisbane CBD approx 8 km.

That's pretty good going. Well done, much closer than I assumed.

Probably not far down the road for me. We're near Carindale.

 

[CanOz]

That's pretty good going. Well done, much closer than I assumed.

Probably not far down the road for me. We're near Carindale.

Thats where we're building, hopefully! Not far from the golf course:dance: