How Much Money Can You Make Day Trading?

How Much Money Can You Make Day Trading

How Much Money Can You Make Day Trading PictureEstimated Reading Time: 5 minutes.

I receive many emails asking "How much Money Can You Make Day Trading?"

In this article we will talk about realistic expectations of how much money you can make when day trading.

The Mindset of a Trader

Many people are intrigued by the idea of "making millions in minutes" while working from home or any place they want. No commute to work, no boss yelling at you, no deadlines, no annoying coworkers, no cubicles, no demanding customers.... and the list goes on.

Often people dream of living in an exotic location, trading for a few hours in the morning and then enjoying life.

And although this might be reality for some traders, the vast majority of traders have a different reality. They put in a lot of time and money, spend countless hours in front of their computers (often more than they did while they still had a "real" job) and yet their account is not growing. In fact, it is said that the majority of traders LOSE money.

If you want to become a trader, then you MUST be willing to invest the time, money and effort to learn how to be a trader.

You won't become a trader overnight. In the beginning, trading can be grueling and frustrating. Your results will not match your efforts. And this is why many traders give up.

However, if you do follow a structured approach and understand that trading is not another "get-rich-quick-scheme", then there's a chance that YOU might achieve your goals.

Do You Really Want To Be A Trader?

Trading is a business. It's a profession. And it takes time to learn how to trade.

Anybody who tells you differently, is a liar. Sorry for being harsh, but it's the truth.

You can't just buy "the magic system" that automatically puts money into your bank account overnight. It doesn't exist!

Realistically, it can take you several weeks and and often even months before you have your first profitable trade. And in the beginning you might even lose some money, no matter how well you prepare. Because when trading, there's always the risk of loss!

But here's an approach that can increase your chances of making it as a trader:

Step 1: Setting Realistic Goals

Here's the problem:

Many aspiring traders have unrealistic goals. They start with a $5,000 account and expect to make $5,000 in their first month of trading. No wonder many traders fail.

Focus on small, but consistent profits!

Trading is a function of risk and reward. The more you risk, the higher the profit potential. Or in "traders language": The larger the stop loss, the higher you can set your profit target.

Let me give you an example: A good reward/risk ratio is 1.5 to 1. This means that you are willing to risk $100 trying to make $150. If you start with a $5,000 account, your stop loss of $100 would be exactly 2% of your account. I'm sure you already heard about the "2% risk rule." It's widely used and many trading experts recommend it.

Now let's say you are right every other trade, i.e. your trading system has a winning percentage of 50%. This means that in the long run you can expect as many winning trades as losing trade.

For our example, let's say you place 10 trades - 5 of them are winning trades and 5 of them are losing trades.

So you would make $750 on your winning trades (5 * $150), and lose $500 on your losing trades (5* $100). Your gross profit after 10 trades would be $250. You now need to deduct your commissions, which should be around $50 - $70 for 10 trades, depending on your broker and the markets you trade.

Therefore your net profit after 10 trades would be around $180-$200.

Now the question is: How many trading signals does your system produce?

If you get 10 trading signals per week, then you can expect a weekly return of $180-$200 on a $5,000 account.

Which is a phenomenal result!

Think about it: With a simple trading strategy like this you could expect $720 - $800 per month on a $5,000 account. That's a whopping 14% - 16%! Per month!

Now, keep in mind that there's also the possibility of LOSING money.

So let's talk about losses:

If you had 10 LOSING TRADES in a row, then you would lose $1,000, since you are risking $100 per trade. That's 20% of your account. Ouch!

But honestly: If you manage to have 10 losing trades in a row, you should stop trading immediately. Because the chances of getting 10 losses in a row when trading a strategy with an expected winning percentage of 50%, is less than 0.1% (!!!)

Summary of "How Much Money Can You Make Day Trading?"

Before you even start trading, you need to know what to expect from trading.

Have realistic expectations, and understand the risks of trading. Set small goals. Don't shoot for the stars. Try to make $100 per week on a trading account of $5,000. That would be $400 per month, or 8% based on your capital. Per month!!!

You might not achieve your weekly goal every week. There might be some weeks when you make less. Or you might even lose some money. But in the long run you should be ahead and see your account grow. And with proper risk and money management, you should be able to control your risk while growing your account.

So the key is to have a trading strategy with a winning percentage of 50% while achieving a reward-to-risk ratio of 1.5 to 1. 

If you need such a strategy, then you should check out "The Simple Strategy".

Does this answer your question "How Much Money Can You Make Day Trading?"

Leave a comment below!

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Leave A Reply (139 comments so far)


  1. Keith
    3 years ago

    As a new trader helps to put into very clear perspective of what to expect. Thanks

    [Reply]


  2. Paul
    3 years ago

    Great advice! There is often so much hype surrounding “investment systems” I.e. software.

    Thanks for the reality check!

    [Reply]


  3. Tony Shahery
    3 years ago

    Markus, you are a great teacher. I am learning a lot from you.

    [Reply]


  4. Gloria
    3 years ago

    Extremely useful. thank you. Nobody addresses this thoroughly and it IS THE MOST IMPORTANT ELEMENT OF TRADING. Please send more info and advise how to sign up to learn more of it.

    [Reply]


  5. Phil Claiborne
    3 years ago

    Very good advice Markus… IMHO your lessons and advice on money management and realistic expecations are the most important aspects of successful trading.

    [Reply]


  6. Kofi
    3 years ago

    Invaluable advice. Thanks.

    [Reply]


  7. Jeff
    3 years ago

    Thanks Markus!!! A really good reality check is always appreciated. Please keep providing the knowledge to help us all out.

    [Reply]


  8. Bob H
    3 years ago

    After bid/ask shrinkage and commissions, at 50% win rate with a reward-to-risk ratio of 1.5 to 1 won’t cut it unless you trade a LOT of contracts.

    [Reply]


  9. dipak
    3 years ago

    Good strategy! On your video for entry/exit, what is the time period? i.e. 3min 5 min 15 min or 60 min? Thanx!

    [Reply]


  10. Doctor Stock
    3 years ago

    Preserving capital is so critical if people want to be successful traders or investors. It’s really an issue of risk management… minimizing losses and maximizing returns.

    [Reply]


  11. Vince Di Antonio
    3 years ago

    This method of trading sounds reasonable to me and would like to learn more about it

    [Reply]


  12. Harry
    3 years ago

    You keep it clear and simple, don’t shoot for the stars.

    [Reply]


  13. Chase Anthony
    3 years ago

    Great article!

    Thank you!

    [Reply]


  14. Richard Chibanga
    3 years ago

    Markus, this sounds so logical and very helpful to us, relatively newbies to trading that I will hasten to say it is like a no-brainer. Yet for some reason we tend to lose ourselves after a couple of wins and we start throwing caution to the wind by taking excessive risks and overtrading, etc. Thanks for the advice, now I know I will one day make it as a trader despite the losses I have had.

    [Reply]


  15. Mike Murphy
    3 years ago

    As usual erudite & to the point. Thx.

    [Reply]


  16. loretta carns
    3 years ago

    I’d like to be able to produce results of 1.5 to 1. Not able to find the stock that are moving in any direction to make just 5%. I’m hoping in time I’ll be able to learn enough to be able to make the ratio..

    I’ve learned much from you. Thanks! Look forward to learning more.

    [Reply]


  17. Manuel
    3 years ago

    Truth: “If you want to become a trader, then you MUST be willing to invest the time, money and effort to learn how to be a trader.”

    [Reply]


  18. Scott
    3 years ago

    This is good theory. However, the last time I traded CFDs the commissions totally ate up my profits. I had a $5 000 account, a win/loss percentage of about 50% and a reward/risk ratio of about 2:1. All good … except as I said, I was going backwards because of commissions. I think I will need to do better than 50% to beat the brokers!

    [Reply]

    Markus Heitkoetter Reply:

    Scott, I am trading futures and pay between $2.50 and $3.00 per trade, i.e. $5-$6 per round turn. May I ask how much you are paying in commissions for trading CFDs?

    If commissions force you to shoot for reward/risk ratio of 2:1, you have a significant disadvantage. Have you ever considered trading futures?

    – Markus

    [Reply]


  19. Alvin Lowery
    3 years ago

    Markus,

    Your wisdom resonates at the most logical level. If only we can embrace your advice and actually “live” it, then we can be on our way to becoming a successful trader. Keep repeating it and one day, we’ll actually experience that ever so elusive “ah ah” moment. Thanks for caring enough to share.

    Alvin

    [Reply]


  20. Anthony Orsborn
    3 years ago

    Thanks Markus, Have been trying to decide best format for entry into the world of currency trading, look forward to next blog with anticipation. Regards.

    [Reply]


  21. pierre
    3 years ago

    fantastic
    i trade based on your teaching.target 200.00/day
    and it is for free

    [Reply]


  22. Jerzy
    3 years ago

    Good staff, thank you Markus.

    [Reply]


  23. JAMES NEWBERRY
    3 years ago

    I HEARD THIS 100 TIMES AND EVERY TIME I HERE IT
    ITS LIKE THE THE FIRST TIME
    THESE ABOVE STAEMENTS NEVER GET OLD
    GOOD JOB

    [Reply]


  24. Avery e
    3 years ago

    Awsome. It’s about time someone out there is willing to tell it like it is. Thanks
    Avery

    [Reply]


  25. art
    3 years ago

    as ussual very simple and thoughtful advice you make it all seem simple thanks

    [Reply]


  26. ndoro juragan
    3 years ago

    Extremely useful.
    I like it.

    [Reply]


  27. loula
    3 years ago

    Hi Markus the information is very useful specialy for the novice keep the good work thanks .

    [Reply]


  28. Paul
    3 years ago

    Haven’t tried your course, but decent of you not to edit out Michael’s post !

    [Reply]


  29. Chris
    3 years ago

    Been receiving hooks from a fishing line, and then repeated hooks of the same subject matter over and over.
    My simple question to all of you is to ask for actual CPA verified trading records that have been forwarded to the IRS from Markus for the past 3 years using any technique that has been passed on for free or for sale.
    Personally I believe that real time fills on an account of decent size using the famed day trading technique that is Markus’s favourite would generate quite different results than that advertised.

    I have a sniff meter I use for anyone trying to promote themself or sell anything. It’s called a 3 year CPA verified accountants report sent to the IRS which you will or should get anytime you are interested in buying any sort of business. Why is it that you can never get it from people trying to sell anything trading market related?

    Good luck to all you worshippers of this guru!!!

    [Reply]

    Markus Heitkoetter Reply:

    Chris,

    Chill! I am just sharing some thoughts on a blog post. You didn’t even have to give me your email address for this. ;-)

    And if you check out my website, you’ll see that I am sharing my day trading setups, I am showing you exactly what indicators I use and how I use them, and I even show you one of my favorite trading strategies – and you don’t have to pay a single penny to get all this info.

    Take the info and see if it helps you in your trading. If it does – GREAT! If not, no problem. There’s plenty more information available on the internet. I’m sure you’ll find something that will work for you.

    Peace,

    – Markus

    [Reply]


  30. Mate Milinkovic
    3 years ago

    haha you dont need a trading system to have a winning percentage of 50 percent. All you need is a coin if it is heads you go long , if it is tails you go short. The risk reward concept is important though since you want your winners to be bigger than your losers. Also to Micheals comment about going out of the market after he blows his last 1500 I say this. Dude if you got a mentality that is saying nothing is going to work out you will never suceed. Instad of spending any more money in the markets look at your previous trades and see what went wrong with them and dont repeat them.

    [Reply]

    Markus Heitkoetter Reply:

    Mate,

    I disagree that trading is as easy as flipping a coin. ;-)

    But I strongly agree with your statement re. analyzing your trades. If you have been trading, look at your trades and see what works and what didn’t. That’s why it is so important to keep a TRADING LOG. However, most (failing) traders I talk to don’t have a trading log and don’t even know their numbers. They don’t know their winning percentage, their profit factor, their average profit per trade etc.

    And even if, they usually don’t break it down by market. And that’s important, because you might realize that you are successful in one market and lose money in another market. If that’s the case, focus on the market you WIN in and drop the market you LOSE in.

    Makes sense?

    – Markus

    [Reply]

    jivan@myway.com Reply:

    With all the respect you deserve, I have read another Trading Advisor recemmendation who said “Focus on the lost, the profist will come by themselves”. Cheers. Jivan.

    [Reply]


  31. Mate Milinkovic
    3 years ago

    And dont be knocking Micheal Muellers post his post he is the only one that has any experience with Heitkoetters system. Everyone reading this blog is saying ty for the post and good job. How about you guys hold off on the ty untill you start making some pips and getting results. Thanks for the warning Michael I feel like he is giving people freebies to lure them into buying his system. I have a feeling the system is not much of a system judging by this blog entry.

    [Reply]


  32. Mike Williams
    3 years ago

    Nice article Markus, but very misleading. The .1% odds you cite assume you only traded 10 times total. But your example was for 10 trades per week. In that case, assuming you traded 500 times per year, the odds of having 10 consecutive losers is more than 1 in 3. And if trade 1000 times in a year the odds are over 60%!

    Please post this and correct yourself for the safety of your readers and your integrity.

    [Reply]

    Markus Heitkoetter Reply:

    Mike,

    You are absolutely right. The more trades you take, the higher the chance of having 10 losses in a row. Your numbers are correct.

    My point is, that whenever you trade a new strategy, there’s a very small chance that IN THE FIRST 10 TRADES you have 10 losing trades in a row. And the longer you trade a strategy, the more reliable are the numbers that you will get for your performance, e.g. Profit Factor, Winning Percentage, Average Profit Per Trade, etc.

    And as you account grows, you should apply a different money management technique. I personally like to use Ryan Jones’ Fixe Ratio Money Management, since it reduces the risk the bigger your account grows.

    Does this make sense?

    – Markus

    PS: Good comment!

    [Reply]


  33. Maurice Wasbauer
    3 years ago

    I would like to repeat one thing that is THE MOST IMPORTANT THING to know when you want to become a succesful trader: FOCUS ON SMALL CONSISTENT PROFITS. That is key!

    Combine this with compound growth and you will achieve your goals!

    Markus: Maybe you can explain the power of compound growth!

    [Reply]

    Markus Heitkoetter Reply:

    Good point. I’ll address it in another post.

    Thanks for commenting,

    – Markus

    [Reply]


  34. Shahrul
    3 years ago

    Pretty solid stuff you have there! Every trader should have a copy of your post as reference.

    [Reply]


  35. Dionyssis
    3 years ago

    Solid.

    [Reply]


  36. Ff
    3 years ago

    Dear Markus,

    How many years will it take to make enough money to buy an oil tanker starting with 16% monthly ROI on 5.000 account balance and have a good balance left to continue trading?

    Now with regard to your support team. I have applied many times with the following question and your team instead of addressing it, was referring to the Trading Room itself. Please address my question just with two figures.

    What was your average daily and monthly ROI in the Trading Room over the past year or just from the starting date according to your Money Management rules as well as the maximum drawdown so far?

    Regards.

    [Reply]

    Markus Heitkoetter Reply:

    Ff,

    I placed my first trade in 1989, so it has been a while. And I wasn’t profitable from day 1. I don’t think every trader is ;-)

    In fact, I had my fair share of struggles, and wiped out a trading account three times before finally “getting it.” You can read about my struggles on the homepage. I don’t keep them a secret. I wasn’t born as a trader. I learned it the hard way, like most traders.

    Regarding the trading room:
    We post a daily video in which we show EXACTLY which trades we did. We include ALL TRADES, winning trades and losing trades. As you know, losses are part of the business, and we’re not hiding anything. We have winning days and losing days, and we disclose everything in our daily recap videos.

    If you are interested, you can watch them here:

    Hope this helps,

    – Markus

    [Reply]


  37. Dario
    3 years ago

    Markus gives many useful advices.
    Trading in the end is easy but it’s not simple at all.
    It took me 2 years of constant practice to achieve profitability.
    It’s really like learning a new job from zero and indeed the psychological part is very important.

    Remember, everyone reading this, 95% of the traders lose BIG, there’s an huge chance you’ll be among this 95%.

    Finally, I have done almost all the courses they sell and joined the live trading sessions.
    The results were not what I hoped for, nor trading futures is the top cost effective activity.

    They were still good courses for introducing a newbie to the world of trading, and the general advices were wery good.
    But to really leave the “I gain 100, I lose 94 and I pay 5 in commissions” territory you’ll have to follow a more painful (not necessarily expensive) path, involving learning how to read price (takes a long time and study).

    [Reply]

    Markus Heitkoetter Reply:

    Dario,

    Thanks for your comment!

    I just talked to another trader, and he said back in the days, when new traders came into the trading pits, it took many of them A FULL YEAR before they were profitable. And trading in the pit was MUCH easier than trading of the screen!

    Dario, I’m glad to hear that you are profitable now. I’m sure you found a trading method or style that fits you. And if you are like me, then you probably took some ideas from all the courses you bought and made them your own.

    And ultimately, that’s what every traders needs to do: Find a trading style and strategy that fits YOU.

    I’m not trading the same way I was trading in the beginning of my trading career. I listened to a lot of traders and tried a lot of different things before I finally found my own style that works for me.

    – Markus

    [Reply]


  38. jean marie
    3 years ago

    thank you
    it is very interesting

    excuse me i don’t speak english very well

    [Reply]


  39. Chijioke
    3 years ago

    This is really helpful. It really touches one aspect of trading I’ve been struggling with which is wanting to make a big time profit in a short time and with a small capital. I’ve just decide, after reading this article, to revisit my trading system so as to set realistic goals. Thanks so much for this post. I guess I will still need your help in the area of a trading system with a 50% win.

    [Reply]


  40. Francois
    3 years ago

    In general, the advice given is sound. Fact is, one should dispatch emotion whilst trading – it should be done totally dispassionately. Emotion only gets in the way of one’s trading plan, and can skew the trading strategy when it interferes in the execution thereof.

    Also, be astute and create your own trading strategy [!!backtested!!] and incorporate it in your own trading plan, which should fit your particular circumstances & requirements. Keep sound financial money management in place, and keep a daily detailed trading journal record of your activities.

    Take note that anyone who charges for any product will have an ulterior motive for you to be persuaded to purchase such a product. Do your due diligence on these products before spending money, or you may be [very] unpleasantly surprised. I do not infer here to Markus’ products, but I tend this remark to be applicable to any purchase decision of any product in all categories.

    [Reply]

    Markus Heitkoetter Reply:

    Francois,

    I couldn’t agree more. It is absolutely important to backtest ANY strategy! It doesn’t matter if you bought it or got it from your brother. Do your own due diligence to ensure that
    a) The strategy really works and
    b) YOU are able to execute the strategy!

    Good points! Thanks for sharing.

    – Markus

    [Reply]


  41. Joe
    3 years ago

    Very rational advice – better to learn to manage your money than give to fee based brokers. Spend the time to learn as Markus says and manage your own risk/rewards. Joe Blow

    [Reply]


  42. swats
    3 years ago

    It just a fabulous thing I ever came across. I m sure its going to help me a lot soon. Everyone just teaches us how to trade but no one teach managment. Which is most important part in trading and every trader must do. Thanx a ton for your valuable posting. Keep posting more like this.

    [Reply]


  43. Eric Hannestad
    3 years ago

    Hi Markus,

    Thanks for getting me interested in trading futures with your articles and excellent “Complete Guide to Day Trading” book. Excelent advice. My problem is that I can’t seem to pick enough winning trades using your methods to make a reasonable profit after commissions.I have your chart indicators and like the ping-pong concept. Any advice on further qualifying trades to get a better winning percentage?

    Thanks,
    Eric

    [Reply]


  44. nick boretz
    3 years ago

    In my opinion people who want to day trade emini’s shouldn’t even sim trade until they have watched how the price bars..or candles move. They should become aware of patterns that repeat over and over again with special focus on support and resistance levels where price stops and reverses..or breaks through. At least two to three weeks of just watching and making notes. Then, before actually sim trading, lay in horizontal lines across the chart where there are price turning points..where the area has been hit several times and price has bounced. Sim trade off those points.
    Indicators are fine, but they lag the action. A good stochastic indicator at least shows you overbought and oversold points..giving you a slight advantage, but at times oversold and overbought areas simpy remain that what

    [Reply]

    Markus Heitkoetter Reply:

    In his book “Outliers: The Story Of Success” author Malcolm Gladwell claims that the key to success in any field is a matter of PRACTICING a specific task for a total of around 10,000 hours. The more time you spend in front of your charts watching the market, the better you will get – provided you are LEARNING from your successes AND your failures!

    [Reply]


  45. Greg McClure
    3 years ago

    Markus, I have tried your trading strategy that you have shown before with range bands, but I have had limited success while trading the E-mini. It seems that once I’m in the trade, it will go against me and eventually stop me out for a loss. I don’t seem to have the winning percentage that you spoken about. Any ideas?

    [Reply]

    Markus Heitkoetter Reply:

    Yes! Trade a market that moves! Right now the e-mini S&P sucks (excuse my language). There are no trends, small daily ranges and choppy trading. Instead, take a look at the EUR/USD, Crude Oil and even Gold. Right now these markets have the nicer trends. When trading a trend-following strategy like the “Simple Strategy”, make sure you are trading a market that has some trends every once in a while. I sure hope the e-mini S&P is making a comeback soon, but right now THIS market is better suited for scalping and trend-fading strategies.

    [Reply]


  46. Mike Sargent
    3 years ago

    Great stuff! You tell it like it is.

    [Reply]


  47. JJ
    3 years ago

    THIS IS FANTASTIC! I have been reading your e-mails for about 6 mths., but was traveling with my job, and could not devote the time I would need to accomplish this. Now I have the time, and after researching all the other adds, and hype, I love your down to earth style and presentation. I am convienced that you are the best. I can’t wait to get started.

    JJ

    [Reply]


  48. Mike Kerfer
    3 years ago

    Wow! A little harsh but very true. Trading is a JOB – it takes time, effort and a lot of energy to become good at it. Also most people before making it to the trader level pay (or lose) a lot of money in order to reach their goal.

    [Reply]


  49. Madhavavariar
    3 years ago

    I was about to stop the trade due some loss but this article gives me to continue further. Thank you

    [Reply]


  50. Markus Heitkoetter
    3 years ago

    Bill, thanks a lot for your detailed comment and thoughts. Regarding your question: If you are a beginner, look for a trading strategy with simple rules that are easy to understand and execute, so that you don’t get lost. Don’t make it overly complicated. When the market is going up, you BUY. And when the market is going down, you SELL. That’s the basic trend-following approach. And when using a trend-following strategy, apply a reward/risk ration of 1.5 to 1 or maybe even 2:1. But not more, otherwise your winning percentage might drop below 50%. And a trading strategy with a winning percentage of less than 50% is not easy to follow, since you need enormous discipline. If you have a low winning percentage, you might have 6-8 losses in a row before you see a profitable trade. And it’s not easy for a beginning trader to enter the 9th trade with confidence if you had 8 losing trades in a row.
    This is actually a very good question. I think I’ll dedicate a whole blog post to this!

    [Reply]

    rooplal.vish@gmail.com Reply:

    Markus

    Do you have the same Simple Strategy for Forex Currency?

    [Reply]

    Markus Heitkoetter Reply:

    Yes, you can use the same strategy when trading currencies. In fact, I’m using the Simple Strategy for trading the EUR/USD.

    [Reply]


  51. Markus Heitkoetter
    3 years ago

    Jesse just sent me an email with some great comments. He asked me to post it here for you:

    =======================
    Trading is perhaps the most difficult thing to do as a profession! I did it in banks for over twenty years adding more to their profits and an occasional small bonus given to me for all my efforts! If you are determined and study the profession well, starting off with a demo account for at least three months and then if successful transferring your consistent results to a live account, then you will surviving and be a winner in the end. The odds are against you but you must persevere and develop a “feel” for your trading. If you plan on buying or using someones systems, no matter how successful they have been, and you do not put in an effort to develop your own style and understanding as a trader, no system will then be able to help you to make money. Take any system available to you as an aid to help you climb a step or two, the rest is up to you.

    Jesse
    =======================

    [Reply]


  52. Erika1
    3 years ago

    Yes, good info. You keep it simple which is great. I am new trader, started right out with futures. Have awesome simple platform. The focus, control of my emotions is what has me not succeeding like I would like. This is also a huge part of trading that you do not really grasp until you experience it. Some folks blame it on the program, software, strategy, plan, guy that sold them the product for trading, etc.etc.etc. But, seriously it is each person’s lack of knowledge and experience with a new task that is the culprit. This takes time, patience, lots of practice and can take alot of money, yes. Personally I am not ready to give up and I feel that I have not put in enough practice time due to my health, so we must be honest with ourselves.
    I like your free information and have tested it on my platform, I learned the Bollinger Bands from you. On the crude oil contract, I saw five straight days in a row where I made Sim dollars with your advice. Just like you said, at the approximate trading timeframe you stated. Perfect! Now, real money, that is a different emotion and one must be in control of their emotions. I read somewhere that “It is not about what the market is doing. It is about what you are doing. You are Master You are disciplined.”
    So that is my two cents, I would like to join your sessions, maybe soon I can afford it. Your free advice is excellent.
    May Love and Light be with you, Erika

    [Reply]


  53. Fausto
    3 years ago

    Thanks for give me a guide to be a trader , it´s simple but it is a biger advice.

    [Reply]


  54. pete
    3 years ago

    Very informative. Keep the great info coming. It always helps to learn from a proffesional.

    [Reply]


  55. Wayne Roberts
    3 years ago

    Markus — Did you ever read ” How I Trade For A Living, ” by Gary Smith ? You may wonder: what does this have to do with me ? Read on. Smith was a one-of-a-kind trader if there ever
    was one. He traded mutual funds. Nothing else. As you well know, mutual funds cannot be
    traded when the market is open. Only after the market has closed can buy and sell orders
    be entered. He had two trading tools: his television set and his telephone. That’s all he had !
    Smith said that what changed him from a 19-year breakeven trader to a trader who was
    consistently profitable was a change in philosophy. Instead of thinking in terms of making a
    killing, he started thinking in terms of simply trying to make a profit ( of any kind ) every month.
    This change of philosophy was what did the trick for him.

    [Reply]


  56. JMR
    3 years ago

    If you read Marcus’s offerings, so far, and, also, read and consider his many responses to
    comments made, and, then, conclude that Marcus is simply a huckster trying to sell worthless
    products and materials, then you are a very poor judge of character.

    This is a serious trader, who has found some enjoyment in passing along valuable knowledge to others. If he profits from materials sold, then he should–he has given years of time and thought to these matters. I agree with the “doubting Thomas (Chris) that certified results are the blue
    ribbon standard to verify success. However, even if Marcus has had substantial losses over a period of time (which I doubt is, in fact, the case), it does not invalidate what he is doing and trying to do for other aspiring traders.

    All the issues he addresses are valid and worthy of considerable consideration by any wannabe trader. He is not asking you to invest in a fund that he is managing; he is simply discussing ideas about trading. If he is using MACD, Bollinger Bands, and Wilder’s relative strength index, then it is worth a lot just to have him share his experiences with these familiar and frequently used tools. Anything that you can learn about them in addition to what you already know is a gift. A gift is a gift. One doesn’t need to ask further questions in the face of a gift.

    Enjoy and learn or do something different.

    [Reply]


  57. Liviu Tomulescu
    3 years ago

    Hi Marcus, always great info from you. Thank you. The only question I have is how do you find a Positive Expectation strategy or Expected Value?

    How do YOUR strategies test if you were to backtest them on your chosen markets?

    If we tweak the win/loss ration we really only change our average wins and our average losses, without affecting the Positive Expectation. Without a proven positive expectation, we cannot win in the long run.

    It is the Expected Value of the methodology that determines your results in the long run.

    I realise that the future may become different from the past, but at least if the method did have a positive expectation in the past, it may continue to do so in the future. Otherwise, anything goes.

    [Reply]


  58. Rob McGregor
    3 years ago

    Great start on the money management aspect of trading. Would appreciate more discussion on this topic. For example…should I start off trading mini lots until my trading account is large enough to support trading standard lots? In other words, use mini lots to learn how to trade multiple lots before progressing into standard lots. Should I keep seperate accounts for each money management program (mini lots vs standard lots)?

    Thanks Markus.

    [Reply]

    Markus Heitkoetter Reply:

    Rob, I will address Money Management in another article. Here’s a quick answer to your question: YES, start small and grow big. If you have a rather small trading account right now, trade the mini lots until your account is big enough for trading standard lots.

    [Reply]


  59. Roland Petit
    3 years ago

    Informative, well written and appreciated.

    Thank you.

    [Reply]


  60. Martin E
    3 years ago

    It seems obvious, but maybe not to some. Your advice, to trade a small amount profitably before increasing the size of your trades, is very important. If your trading is profitable, the size of each position and your account will take care of itself.

    It seems the Boomerang entry of late is creating a lot of losing trades. What is the typical winning
    percentage of that entry, with using your exit rules? Also do you think that these entry signals will recover and begin having more winning trades than typical?

    [Reply]

    Markus Heitkoetter Reply:

    Especially when using the Boomerang Strategy you MUST make sure that the market is still in a strong uptrend. Often Boomerang entries occur at the end of a trend. Make sure that the Upper Bollinger Band is still pointing up and hasn’t flattened yet when considering a Boomerang trade.

    Martin, I checked our database and it seems that you got “The Ultimate Day Trading System” in December. Did you know that you have free access to our Live Trading Room for 14 days? You might consider joining us in the room and see exactly how we trade the Boomerang trades. It might help you filtering the GOOD entry signals from the BAD ones. Just contact Mandy if you want to start your room trial.

    [Reply]


  61. Wee
    3 years ago

    Thanks.At least now I unserstant how toprotect my capital or just the system

    [Reply]


  62. Laszlo K.
    3 years ago

    Very good summary!

    For those asking about products here.. I bought, I use!

    Even though I have not reached profitability yet it is just my fault! Actually, LACK OF TESTING. Yes, it is booooring but you HAVE TO DO. There is no other way! … at least I haven’t found ;)

    Why I still like Markus’ systems? They are so simple that you don’t want other. When you do your hard work that is you test a strategy.. you want it simple.. and train yourself until you find your own nuances to get it work FOR YOU. This is where the Trading Room helps a lot. There you can see how others fitted the systems to him/herself.

    However, you want emotions out of the game.. please, don’t compare these systems to automated trading. Those are just other kind of animals.. built on way far different market approach and mathematical background.

    Personally, I believe in manual systems more (I just haven’t found anybody with a Lamborghini from a robot bought on the internet). Even trading the most simple strategy you must take current market conditions, overnight moves and news flow into account before you trade a specific signal. The signal itself won’t guarantee the success! I concluded to this after trying other systems too.

    Do your homework and don’t look back! Cheers!

    [Reply]


  63. Joao
    3 years ago

    Hi Markus
    It comes as a bit of surprise that you, being a German, never mention the Dax Futures (Eurex). In my humble opinion, the FDAX is the day trader’s paradise. Not even the CL matches it.
    All the best.

    [Reply]

    Markus Heitkoetter Reply:

    Hi Joao, you’re right: I’m not a big fan of the Dax. But that’s just a personal preference. In fact, my brother Tobias is ONLY trading the Dax. But he’s only trading it during the European morning session, which is WAY to early for me. I’m living in Austin, TX. :-)

    [Reply]


  64. Paul Murphy
    3 years ago

    Dear Markus
    i have been receiveing your emails and watched your videos since last November an 3 best
    indicators for Day Trading. i am one of the People looseing money like some Tradors Do.
    I have been Trading Forex 9 months and have gone back to the Demo A/c on January with
    the 3 best indicators you have shown for Day Trading.i would be interested in Trading Forex
    on Range Bar Charts that you use.
    Do you offer a Demo A/c on Range bar charts
    KInd Regards
    Paul Murphy (Eire)

    [Reply]


  65. alex
    3 years ago

    Noticed that your bar chart is able to show 3 colours; green, black and red bars which you use for trade entry – how do you set this up? Thanks Markus.

    [Reply]


  66. frederick
    3 years ago

    Hi Markus!
    Your teaching is down to earth and very simple as if you were Einstein’s student who advised on simplicity of any method whatsoever to make it easy for people to understand! But astonishingly
    the stock market or the market place generally is not that simple. One of the stumbling blocks for
    traders for example is the bullish/bearish trap. How can you avoid this?
    Frederick

    [Reply]


  67. Abdul Samad Mondal
    3 years ago

    Thank u its helped me a lot, I’m from India.

    [Reply]


  68. Mriazkamran@gmail.com
    3 years ago

    Markus:

    Read your book Day trading strategy and also watched videos. Simple and straightforward.

    1. As you mentioned in video, you only use Volatility based charts for day trading, which is 20 tick bar chart. Searched hard trading platform has option to use Volatility based charts with ticks bars. Do you have an idea which system supports this option and approximate cost?

    2. If can not find tick bar charting software, and want to use time based bar charts then what time frame would you think close to tick based bar chart?

    3. Placing an order, one tick above high of bar (in uptrend) and one tick below low of bar (in downtrend), how many cents you consider equal to one tick? And if using time base charts then how many cents will equal to one tick bar (rouoghly).

    Thanks, Kam

    [Reply]


  69. Lori
    2 years ago

    Thanks

    [Reply]


  70. Sojan Thomas
    2 years ago

    Really worth

    [Reply]


  71. EMMANUEL DIXON
    2 years ago

    Great insights into trading.Simple but precise.

    [Reply]


  72. P.a.siddique
    2 years ago

    thanks

    [Reply]


  73. Sachin
    2 years ago

    Really a good points to keep in mind while trading. Thank you Markus

    [Reply]


  74. Fay
    2 years ago

    I started with the “advanced” book but find that it’s too advanced for me. I want to change to the “Beginner’ book so that I can restart my trading status.
    I like your writing style making it easy to understand but I have only traded stocks and since the market fall not successfully..

    [Reply]


  75. Khairuddin
    2 years ago

    Thanks for your coprate

    [Reply]


  76. Bibin Frederick
    2 years ago

    i have to study abt daytrading.so i need ur book Markus.plz help me@@@@

    [Reply]


  77. Dave
    2 years ago

    Great information! Thanks, Markus!!

    [Reply]


  78. neisse
    2 years ago

    Hello Markus,

    Every article from you is always a lesson in reality checks. I have been demo trading for almost a year now and plan to go live very soon. But with your statistics on having a monthly ROI of less than 1000 dollars for 20,000 account, is it ever possible for forex traders to make a living solely from trading?

    Thanks.

    [Reply]

    Markus Heitkoetter Reply:

     
    Yes, absolutely. But not on a $10,000 account. You can’t expect to make $5,000 per month on a $10,000 account. That would be 600% per year!
     
    Have realistic expectations and then adjust your account size accordingly. If you plan to make $5,000 per month, you should consider trading a $100,000 account.
     
    And if you are not there yet, make a plan how to grow your current account size to the level you need to make a living with trading.
     
    Does this make sense?
     

    [Reply]


  79. Ana
    2 years ago

    Hi Markus,

    Is your system support also outside U.S. market like Philippine (PSE)? I love to learn chart reading deeper.
    Thank you and your response is highly appreciated.

    [Reply]

    Markus Heitkoetter Reply:

    Hi Ana, I personally only trade the US markets.

     

    I have never trades the PSE markets, therefore I can’t give you any tips on how to trade it. But I would assume that my strategies work well in those markets, too, for a very simple reason: My strategies are NOT curve-fitted to any market. Every market is going up, down or sideways – whether it’s a market in the US, Europe, India, Australia…or Philippines.

     

    And I like to BUY in a market that goes up, SELL in a market that goes down and SCALP a sideways market. Sounds very universal, doesn’t it? ;-)

     

    [Reply]


  80. Bhanu kiran
    2 years ago

    Extreamly useful guidelines for beginers like me. I got more confidence to become a successful trader.

    [Reply]


  81. carlossilvestre65@gmail.com
    2 years ago

    I do thank you Markus indeed great peace of information, videos, you giving us all real exemples no dought do not see that very often. Personally i´ve been learnig a lot, now i realize what i´ve been doing wrong…in most cases, but to me your lessons are of great help but after listening to you, seeing you on the platform, a pretty important question comes allong and i know there are lots of people waiting for someone like you to give advice.
    Now we all understand in your position what i´ll ask you …probably you want to avoid for rasons we all can understand… you know what i´m talking about???
    BROKERS please let us know in your opinion the ones that will not rip us off, if you know what i mean,.
    Give me some ex: of Forex and Binary too!!!
    Take care from sunny Portugal

    Carlos Silvestre

    [Reply]


  82. jivan@myway.com
    2 years ago

    Thanks a lot! Well done. However, you don’t give advice for a bearish market. Is “Options the only way to make money when there is a downtrend? Your trading strategies are excellent, but how do you select the right operators if you don’t like fundamentals? Do you trust the “Gurus” like Zachs to identify the companies with good management, positive income, increased growth, a cashflow who makes bankers smiling, etc… Buffer predicts that the markeet will be flat the next ten years! What do you think? Is Ping Pong the only strategy for the next ten years? Wish you a good trading day. Jivan

    [Reply]


  83. chukschurchill@yahoo.com
    2 years ago

    Hey Markus, im still a novice and hoping you will show the way. thanks for that great piece of advice, but hw do i start trading and on what platform would u recommend? thanks

    [Reply]


  84. orahul3@yahoo.com
    2 years ago

    your day trading guide was fantastic. it was very precise and really helpful. you have reminded me so many basic things in day trading and technical analysis which i almost forget. thank you again.

    [Reply]


  85. mohsen
    2 years ago

    hi master,
    how can i download the excel file?

    [Reply]


  86. badwolfe@hotmail.ca
    2 years ago

    thats sound advice thanks

    [Reply]


  87. hitutaneja@gmail.com
    2 years ago

    very well explained and it took me 2 years of regular trading to understand this simple thing well it is simple but not easy !!!!! very valuable
    thanks

    [Reply]


  88. Shashikant Solanki
    2 years ago

    Thank you for your best advise

    [Reply]


  89. Shoegazer movement
    2 years ago

    Thanks Markus. I enjoyed watching your video Day Trading Tips – The Best Indicators For Day Trading. Keep ‘em coming.

    [Reply]


  90. Jayb
    2 years ago

    Finally someone is honest and sincere.Thanks a lot.Not the hype about overnight riches.

    [Reply]


  91. Riyadh
    2 years ago

    I am a novice trader (have not traded yet but researching web to learn about it before stepping into it).Your youtube videos and tips are astonishing because i have went through whole lot of other tutorials nothing comes even near to your presentations and strategies..Keep up the good work

    Riyadh
    INDIA

    [Reply]


  92. Lawrence Wandati
    2 years ago

    It is well put and makes a lot of sense.
    Looking forward to more tips.

    Thanks so much

    Lawrence Wandati
    Nairobi-Kenya

    [Reply]


  93. severino
    2 years ago

    It’s the best so far I’ve read. Make a lot of sense.

    [Reply]


  94. rooplal.vish@gmail.com
    2 years ago

    Thanks for all the tips Marcus

    Can “THE SIMPLE STRATEGY” be used for currency trading?

    [Reply]

    Steve Reply:

    Roopal, I have been studying in Markus’ Rockwell trading room, and I have been using TradeStation to compare the currency futures prices with the spot FOREX. I would prefer to trade with the futures, except perhaps there would be significant advantage to practicing your trading starting out using the smaller commitment of “micro” lots in FOREX.

    The futures track within a tick most of the time, so the price action on those range based charts being the same, you should have very similar results day trading using FOREX or futures brokers. Futures have the advantage that they are traded on a regulated exchange, and I trust futures brokers more than I trust FOREX brokers.

    Originally I thought I could glean some information from the momentary differences in prices, but significant differences just are not there. And I do not trust brokers’ partial-pip quotes. I have yet to test whether there would be any advantage to trading with signals from a proxy which combined both spot FOREX quotes and transactions, and the futures quotes or transaction ticks. Also there are options on the futures, but I know little about these. They might provide useful information about trader sentiment.

    [Reply]

    Markus Heitkoetter Reply:

    I personally use the Simple Strategy for trading stock indices, 30-year Bonds, Crude Oil, Gold and EUR/USD. But I trade the currency on the futures market.

    However, I heard from Forex traders that they are successfully using the Simple Strategy for trading currencies. After all, every market moves either up, down or sideways. The Simple Strategy let’s yo identify a trend and then trade it.

    Does this help?

    [Reply]


  95. hashim
    2 years ago

    Do you believe in the possibility that the customer is possible that betray your adult or possible to steal your money
    In some countries, and one of them that I live where the government is fighting works in this area over the network in the belief that this trade is about money laundering or trade with drug gangs.

    [Reply]


  96. DFumagalli
    2 years ago

    I see Markus is improving over time. When he started this website some years ago he was a bit more optimistic about how long and how hard it is to become a profitable trader.

    His advice is pretty good and can help a new trader expecially in the motivational department and approach to trading.

    I did not find his actual trading strategies to be that awesome (I ended up swing trading which I am much more effective with) but he starts you to the right mindset and that’s a lot for a perspective trader already.

    [Reply]


  97. uzo617@gmail.com
    2 years ago

    I trade 2 contracts currently (simulated). Often times I increase this to 3 contracts to make up on loosing trades quicker (still applying the same strategy). This usually works out for me as my aim is to at least break even by day end. A negative day trading balance tends to carry over negative vibes into the next trading day. Do you have any advice on this?

    [Reply]


  98. r2anton@gmail.com
    2 years ago

    Thanks Markus

    [Reply]


  99. Sam Raj
    2 years ago

    Excellent piece of advice.

    [Reply]


  100. Raj
    2 years ago

    if i can choose sell every time think 70% is correct ?

    [Reply]


  101. Dan
    2 years ago

    Its all very well talking about an 8% per month return on capital, wow, fantastic etc etc, but that is comparing it to a PASSIVE investment where you don’t pay any attention, and are pleased if you get 8% per year. As Day traders, we are talking about a full time job and hours of high concentration. For that we need a decent compensation. No one will stick at it for long unless you can see $2-3000 per month profit. Its tough, but the learning curve is long. At least 4000 hours in my opinion (2 years) and most of that you will have to pay for at quite a steep hourly rate. Markus, for your example to work, lets say 10% per month to make the sums easy, I would need an account of at least $30,000 to make it worth while. Don’t you agree?

    [Reply]


  102. jamsheer
    1 year ago

    thank you soo much for showing the reality of tradding risk

    [Reply]


  103. Joe
    1 year ago

    Great information! If anyone reads this – NEVER day trade with money you can’t afford to lose and NEVER let your emotions get in the way of your decisions.

    I used to day trade with a $5,000 margin account before the $25,000 requirement came into effect. I used this account to fund living expenses, a big NO NO. However, I would make about $2,000 to $2,500 a month off this account, a 40% to 50% monthly return, not bad. I did this for about 10 months, and then… I short sold a stock it started to skyrocket, it will go back down, right??? I didn’t buy back the shares, the stock more than doubled. 3 days later I lost $5,000 and had to cover a margin call of almost $5,000. I never day traded again…

    [Reply]


  104. Jim Caulkins
    1 year ago

    Do you detail the chart set-up, with indicators? Some have “clean” charts, others (like me) have more going on than I can “read”. I’m wondering what type of set-up you use…maybe I can get better – Thanks, Jim

    [Reply]


  105. Donald Patten
    1 year ago

    I have never made a trade. Got a robot running now. It isn’t doing much. Would really like to learn day trading. I need to learn the basics. I know it won’t be easy. This seems like a good place to learn. Thanks Donald

    [Reply]


  106. R Chavez
    1 year ago

    HI I doing some binary option trading I will I i ply the information you probided

    [Reply]


  107. Randy
    8 months ago

    Just wondering if you know of a simple trade journal I can use for oil futures to start? I have been looking on the internet, but they seem to be too complicated for a beginner trader. Just wanted something simple. I can just set up a basic one on Excel is an option.

    What are your thoughts?

    Appreciate the feedback.

    Randy

    [Reply]

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