Friday, March 25, 2011

From US$ 10,000 to US$ 1 M in 100 weeks

Many traders ask me how much is the minimum amount to start trading futures, that is not very easy to answer because it involves many variables and rules that a trader will have to follow, the smaller the beginning account is, the more disciplined and patient the trader will have to be.

Just for your entertainment and inspiration, I've put a "map" below with a table on how you can start your trading with a "small account" and trade your way to success in a "slow" but steady way to reach US$ 1 million in 100 weeks.

Of course you will need an edge if you want to have a minimal chance at the difficult task of being successful in the markets, there are many good traders offering their tradable levels on Twitter, a good service is my own, Diamond Setups, but there are many others to choose from for all pocket sizes and trading styles, the advantage of my service is that I not only give you the levels for high odds trades but I also teach you how you can find those levels all by yourself.

The table below, let me be clear here, has no technical value, it's just an idea for you to see that it is possible to go from a small amount to a big one by only making 1 ES point a day (yes! one point in SP500 futures). Believe it or not, if you make only 5 points a week it is possible to reach that dreamed-by-many target of 1 million bucks in 100 weeks!

Each time you reach an intermediate target you will increase the # of lots you play with, in a way that you will only risk part of the profits you have already won.

Enjoy yourself by looking at what 1 e-mini point a day can do to your account:

Total Capital in US$            Qty of lots                  Target in US$      Weeks to reach target

        10,000                             2                               20,000                         20
        20,000                             4                               30,000                         10
        30,000                             8                               50,000                         10
        50,000                            20                             100,000                        10
       100,000                           40                             200,000                        10
       200,000                           60                             500,000                        20
       500,000                          100                           1,000,000                      20

Create your own plan and make it happen!

Best of luck in your trading!


  1. Try this again ..

    My comment is: Has ANYBODY EVER accomplished this?

    Not that that should matter ... I believe it is this possibility which keeps us trying.

    Imagine that you are trading once per day and you either win 1 pts which requires a move of 6 ticks (1 on either side for fills to be assured) or a stop of MIN 6 ticks. Add in commission. Factor in a winrate around 60-70% and the above chart changes considerably.

    That is trading reality.

    Still your point is taken that a CONSISTENT GAIN PER DAY no matter how small can be leveraged into a SUBSTANTIAL AMOUNT by position sizing.

  2. Hi bakrob99, no doubt there must be traders who have accomplished this, it is NOT impossible, but I was clear saying that this is just for the reader's inspiration... Happy trading!

  3. Okay ... Just to look at the concept a little more critically... Assuming a winrate of 70% (same as your Diamond Setup referred to on this page), and assuming your take profit level is 1 point (ES) AND assuming a stop of 6 ticks (which actually is a little tight for the ES but what the heck), and assuming a commission rate of $4.80 per contract - then I calculate that it will take 251 Trades to double your $10,000 open balance into $20,000. (This does not deduct any platform fees, or data fees or other costs like internet feeds etc).

    So if you plan to take 1 point per day from the ES then it will take as long as 5 YEARS to achieve this goal. Obviously, this is why it is important to have a setup which will give you a positive expectancy and multiple trades per day. If you get, on average, 5 trades per day then you can double your money in about 1 year.

    This seems reasonable. And do-able.

    The million dollar level will take a little longer ... like another 7 years.

  4. Yes, it's one way from hundreds of possible ways, people think different, it depends on a person's background etc, Larry Williams for instance has gone from US$10k to 1 M in less than a year. But only "outliers" will be able to do it. GL