[Education] How much can you make day trading with $1000?
I always thought I could be rich through trading. I’m always looking at the social media where trading gurus will flip their $1,000 account into $100,000. They flaunt their lambo, watches, big apartment, luxury goods and the alluring financial freedom.
Like you, I also dream of being financially free. Not wanting to work a fixed 9-6 job, with the inflexibility to work from home, despite being able to complete all my work from home. I have to meet the standard of the workplace and adhere to policies. Remember the last time you got scolded by your boss for not meeting the deadline? Remember the last time you have to communicate and work with that incompetent colleague of yours?
When I first started, I thought I was able to flip my $1,000 account into $100,000 and be financially free. I watched YouTube videos on the best scalping strategy to use. Sure enough, I flipped that $1,000 account to $0 within a day. This happened for a while before I started to look for the next holy grail to flip my account.
I thought I was trading. But then I realized I was just gambling my money away. I realized those Instagram gurus are able to flip their $1,000 account consistently because they have 2 accounts trading in opposite directions and only post the one that was profiting.
I was dumb thinking I could be rich off just $1,000.
I believe that’s how you got started into trading. Thinking about what the profits could bring to you and your family. With all the luxurious travels and material wants that will be within your reach. But if you think about it, if it’s so easy flipping $1,000 to $100,000, why would any trading guru still teach you their trading strategy? It’s more time consuming to create contents and sell you the courses for a mere $49.
Can you survive with $1,000 capital?
No, you are not able to retire with just a capital of $1,000. There absolutely could be rare cases where you buy Nvidia or Bitcoin at the exact bottom with $1,000. But what are the odds of you catching the next Nvidia or Bitcoin? Realistically, profiting 10RR gain in a month is already a huge feat. To be able to consistently profit 10RR gain is rare. Not impossible, but rare. You have to be reminded that 10RR compounded consistently over 1 year, you will have close to $3,000. Trying to achieve this result is stressful. It will take a toll on your psychology. Moreover, if you do not have any other sources of income, the pressure will affect your decision-making during trading.
Increasing your capital size
Understand that the more capital you have, the easier for you to reach your profit target. Let’s say you aim to trade for a living. Your monthly expenditure works out to be $3,000. If you have a $1,000 capital, it’s near impossible for you to generate a $3,000 profit consistently every month without over risking. Compare that to someone with a $300,000 capital. They just need a 1% gain on their account to earn that same $3,000. It’s way easier and less stress to earn $3,000 at a 1% gain compared to a 3x gain from your $1,000 capital.
How to increase your capital size
After I realize this, I’ve been adding money into my trading account every month. This allows me to build up my capital over time.
At the same time, I’m also attempting prop firm challenges. This is where I attempt to pass their challenges, and if I pass their challenges, I will trade their capital with profit split.
Building capital size isn’t easy and a large capital base won’t be built over a short period of time. Especially if you’re working a day job where your salary will not be easily 5-figures a month. This is why I’m attempting prop firm challenges to quickly accumulate the capital. The faster my capital base grow, the more I will profit with the same RR I gain from the market.
Once you’ve achieved consistency and accumulated a large capital base from the prop firm, channel the profits into your personal trading account and let it grow. Eventually you will come to a point where you do not need the prop firm accounts due to rules and restrictions and you can trade freely using your personal account.
If you’ve been following me on my journey, you would have seen my progression. I’ve manages to break free of my unprofitable self to a consistent profitable trader now.
Remember, trading is not an easy hustle. It takes years of hard work, losses and, breakeven to achieve consistent profitability. You might see many of my prop firm withdrawal certificates, but you don’t see the number of hours I put into backtesting my strategy.
If you enjoy such content, feel free to click the like button and subscribe for more.
Let me know what are your thoughts and learning points in the comments below so others can learn from you too!
Like you, I also dream of being financially free. Not wanting to work a fixed 9-6 job, with the inflexibility to work from home, despite being able to complete all my work from home. I have to meet the standard of the workplace and adhere to policies. Remember the last time you got scolded by your boss for not meeting the deadline? Remember the last time you have to communicate and work with that incompetent colleague of yours?
When I first started, I thought I was able to flip my $1,000 account into $100,000 and be financially free. I watched YouTube videos on the best scalping strategy to use. Sure enough, I flipped that $1,000 account to $0 within a day. This happened for a while before I started to look for the next holy grail to flip my account.
I thought I was trading. But then I realized I was just gambling my money away. I realized those Instagram gurus are able to flip their $1,000 account consistently because they have 2 accounts trading in opposite directions and only post the one that was profiting.
I was dumb thinking I could be rich off just $1,000.
I believe that’s how you got started into trading. Thinking about what the profits could bring to you and your family. With all the luxurious travels and material wants that will be within your reach. But if you think about it, if it’s so easy flipping $1,000 to $100,000, why would any trading guru still teach you their trading strategy? It’s more time consuming to create contents and sell you the courses for a mere $49.
Can you survive with $1,000 capital?
No, you are not able to retire with just a capital of $1,000. There absolutely could be rare cases where you buy Nvidia or Bitcoin at the exact bottom with $1,000. But what are the odds of you catching the next Nvidia or Bitcoin? Realistically, profiting 10RR gain in a month is already a huge feat. To be able to consistently profit 10RR gain is rare. Not impossible, but rare. You have to be reminded that 10RR compounded consistently over 1 year, you will have close to $3,000. Trying to achieve this result is stressful. It will take a toll on your psychology. Moreover, if you do not have any other sources of income, the pressure will affect your decision-making during trading.
Increasing your capital size
Understand that the more capital you have, the easier for you to reach your profit target. Let’s say you aim to trade for a living. Your monthly expenditure works out to be $3,000. If you have a $1,000 capital, it’s near impossible for you to generate a $3,000 profit consistently every month without over risking. Compare that to someone with a $300,000 capital. They just need a 1% gain on their account to earn that same $3,000. It’s way easier and less stress to earn $3,000 at a 1% gain compared to a 3x gain from your $1,000 capital.
How to increase your capital size
After I realize this, I’ve been adding money into my trading account every month. This allows me to build up my capital over time.
At the same time, I’m also attempting prop firm challenges. This is where I attempt to pass their challenges, and if I pass their challenges, I will trade their capital with profit split.
Building capital size isn’t easy and a large capital base won’t be built over a short period of time. Especially if you’re working a day job where your salary will not be easily 5-figures a month. This is why I’m attempting prop firm challenges to quickly accumulate the capital. The faster my capital base grow, the more I will profit with the same RR I gain from the market.
Once you’ve achieved consistency and accumulated a large capital base from the prop firm, channel the profits into your personal trading account and let it grow. Eventually you will come to a point where you do not need the prop firm accounts due to rules and restrictions and you can trade freely using your personal account.
If you’ve been following me on my journey, you would have seen my progression. I’ve manages to break free of my unprofitable self to a consistent profitable trader now.
Remember, trading is not an easy hustle. It takes years of hard work, losses and, breakeven to achieve consistent profitability. You might see many of my prop firm withdrawal certificates, but you don’t see the number of hours I put into backtesting my strategy.
If you enjoy such content, feel free to click the like button and subscribe for more.
Let me know what are your thoughts and learning points in the comments below so others can learn from you too!
Prop Firm Funded Trader
Find out more about me here: linktr.ee/keeleytan
Find out more about me here: linktr.ee/keeleytan
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