Can You Really Make 1% a Day in the Stock Market?

TL;DR

Aiming for 1% a day in the stock market does not mean a trader will achieve it every day or compound the account into an enormous fortune. Ricky explains that day traders accept higher risk than long-term investors, experience red days, withdraw profits, and treat 1% or 1.5% as a goal rather than a guarantee. Read on to understand his results, risk approach, and distinction between trading and investing.

Transcript

hey what's going on team its Ricky with type of solutions and in this video I'm going to be sharing with you on why if I aim to make 1% a day why am I not a trillionaire why am I not super super rich we got asked this question I think it's just a very common misconception trying to compare someone like Warren Buffett who is again.you that's one of ... Read More

Key Insights

• 🥳 Aiming for 1% daily returns as a day trader does not guarantee immense wealth because of the risk associated with day trading.
• 🍉 Warren Buffett's long-term investing approach prioritizes stability and consistent returns over aggressive short-term gains.
• 🥳 Day traders need to find their own niche and develop a deep understanding of their chosen market or strategy.
• ✳️ Successful trading requires patience, discipline, and effective risk management.
• 🪘 Different trading styles can be equally profitable, as long as traders have a thorough knowledge of their chosen approach.
• 🥡 Success in trading takes time and is built upon a solid foundation of values and skills.
• 🤑 It's important to trade with an amount of money that one is conditioned and ready to risk.

Questions & Answers

Q: Can you really make 1% a day in the stock market?

The speaker treats 1% a day as a target to work toward, not a return that must be achieved every day. He says traders are human, make mistakes, and experience red days, including two red days on Thursday and Friday.

Q: Why doesn’t earning 1% a day make a trader extraordinarily rich?

A trader does not necessarily earn 1% every day, so a simple uninterrupted compounding calculation does not reflect the speaker’s experience. Losing days occur, and he also withdraws profits from his trading account rather than leaving all the money to compound.

Q: How is a day trader different from an investor such as Warren Buffett?

The speaker identifies himself as a day trader rather than an investor and says day trading focuses on higher forms of risk. He contrasts this with Warren Buffett’s investing results, described in the transcript as roughly 10% to 15% on average per year, while noting that people sometimes claim much higher short-term trading returns.

Q: What daily return does the speaker aim for?

He says he works toward making 1% or 1.5% in a day. He emphasizes that this is a goal rather than an outcome he expects to hit every day.

Q: How much did the speaker make on the day discussed?

The speaker says he cleared a little over $4,300 that day. He also reports that his trading account had moved above the $100,000 mark after previously crossing that level on Wednesday and then having two red days.

Q: Why did the speaker withdraw money from his trading account?

He says he likes to pay himself back near the end of the month and had let the account run for almost two months to see whether it could reach $100,000. He withdrew $51,666.55 to his personal bank account with the intention of bringing the trading account back to $50,000.

Q: What does the speaker trade?

He says his niche includes ETFs and ETNs that follow the natural-gas commodity. He acknowledges that these instruments involve greater risk and are not suitable for everyone.

Q: What does the speaker recommend instead of copying another trader?

He encourages traders to find their own niche and work toward becoming the best version of themselves. His central point is that a strategy working for one person does not mean it will work for everyone, so traders must also do their part in risk management.

Summary & Key Takeaways

• The video explains why aiming to make 1% a day doesn't guarantee becoming super rich, as there is a difference between a trader and an investor.

• The content highlights the risk involved in day trading and how it differs from long-term investing.

• It emphasizes the importance of finding one's own niche and working towards being the best version of oneself in the trading world.