any tips on starting investing with $1k and building wealth long term vs short term.
Day trading would be ideal but not required. My advantageous goal is $1mill within 6-12 months
Sorry to burst your bubble, but time to come down to reality. Start with 10k min and dramatically lower your goal.
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Putting down the crack pipe should be the 1st step. AFTER your head clears take that $1000, buy a Rabbits Foot and spend the rest on Scratch-Off Lottery Tickets. You’ll prob come out ahead even if you only win more tickets. After that start reading info on beginning investing.
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Thank you for your insightful and enlightening response. I also wanted to thank you for being so inspiring and giving me a direction rather realistic or other wise to help me reach my goal. I can see why others look up to you. If you ever need anything feel free to reach out and I shall help you as you have helped me.
This has to be bait. Can’t be real starting with $1k.
In a 1987 trading contest Larry Williams turned $10,000 into $1,100,000 in less than a year, the highest return on investment ever recorded in the history of trading, to the best of my knowledge.
So yes, fantastic returns are always possible in the short term, especially in the Futures, Forex and option markets, due to leverage.
However, over the long run, the average return is 2% a month, if you have a good trading system (the return could be higher if you trade leveraged financial instruments).
the average return is 2% a month
Where is this from?
The 2% average monthly return comes from various backtests a good friend of mine conducted years ago. The systems he tested were mostly trend-following strategies plus a few mean-reversion systems, with 5 to 1 up to 10 to 1 leverage.
His conclusion was that the top performing trading systems cannot make more than 2% a month on average, unless the trader is willing to take a lot of risk (leverage).
Interesting. Surprisingly I largely agree. The average investor though only makes about 2% a year due to bad decision making, fees, etc. However, I do agree that if you do basic trend follow with leverage - and stick with it - there is a possibility you could get a return much better than the average 2% investor gets or the 9.5% or so that equities get. Of course, anything could happen making these backwards looking items irrelevant.
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