Friday, September 23, 2011

Day Trading - an example of how much money you can do

For some reason some people have a very difficult time understanding how people earn a huge amount of money by buying and trading shares per day. You've probably seen that commercial where they make fun of a day trader, with her husband to buy a painting and sell it immediately. This is a stupid job, and this example will show you why.

I make this very simple example to make it easier to understand. In this example, someone just bought a stock at the beginning oftrading day and then sells it at the end of the trading day. I do not want, how you get the stock market or to get this. I want to show how money can ramp from the purchase and sale of shares in this way. In my example, I will not consider the charges, because it should be quite insignificant compared to its revenue.

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Let's say that John begins with $ 1000 and decided to go and buy 20 working days (four weeks) with all his money on a single action and then to sellBalance at the end of the day (I would not advise this strategy, it's just easier to understand the example.)

Day 1: The title can be bought at the beginning of the day is about 10% by the end of the day if it sells. He now has $ 1100. We must now invest another $ 100 the next day.

Day 2: The title does not go to that day, but no good. He still has $ 1100. Never pick a winner, every action will be.

Day 3: Up to 25%! This is a big winner. Its$ 1,100 is now $ 1,375 with a profit of $ 275

Day 4: Up to 50%! Huge winner. His $ 1,375 now $ 2,062.

Day 5: Down by 10%. As I said, not every action is a winner. John is now $ 1,856.

Day 6: Up to 20%. He is now at $ 2,227. You're starting to see how these days really win "ramp" over time begin?

Day 7: Up to 5%. Now at $ 2,338.

Day 8: Up to 10%. John is now in 2572

Day 9: Up to 300%. Always happen, days like this happens when dealing with penny stocks. Of course, theKey is known, what stocks to choose. John is now $ 10,228!

Day 10: Down by 25%. If you are dealing with stocks at risk, some days you can have a big loss. But what you see from this example is that large losses have no influence on things in the same way, which is a great victory. Even after this loss of 25% of John is still at $ 7671.

Day 11: No movement. Some days you get a warehouse, and does not move up or down significantly. The Day 2!

Day 12: Up to 30%. John is now $ 9,972.

Day 13: Up to 100%.Another great day and as I said really happen if you have to do with penny stocks. These are the actions on the stock market volatility (both gains and losses.) John is now $ 19,944.

Day 14: Up to 50%. John is now up to $ 29 916! You see how quickly your money grow if the amount you invest, you will get bigger and bigger?

Day 15: No movement.

Day 16: Up to 300%. Another day, absolutely huge! And this time, John had spent a lot more to make it all the way up to$ 119,664!

Day 17: Down by 10%. John is now $ 107,697.

Day 18: Up to 3%. John is at $ 110,927.

Day 19: Up to 10%. John is at $ 122,020.

Day 20: Up to 5%. John ended up with $ 128,121.

In just four weeks John has raised his $ 1000 into $ 128,121 in this example, despite three days, where there is no movement for 3 days, where his stock selection has been!

In comparison, imagine that John has bought a single share on Day 1 and held throughout the month. Now imagine(It may be the most unlikely of that). Reload it was 100% in this case (where he keeps a share for the full month), is only $ 2000! Buying and selling (buying and selling again and again) to purchase up to $ 128,121, however, and to hold (although the title went to great) only $ 2000 for him.

Day Trading - an example of how much money you can do

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1 comment:

  1. Thank you so much for explaining such an excellent example to show how much money one can earn in day trading. I am highly convinced with this trading option and is eager to start it soon.
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