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When You’re A Great Day Trader, You Can Never Lose
Before I get into today’s post, let me preface this by saying that “you can’t lose” doesn’t mean you never take a loss on your trades. That would be lying to you. No, it means you will never go broke. Let’s say you have an account size of $100,000. If you were to take a loss of $1,000, it will hurt, but you still have $99,000 at your disposal. The loss was big as far as dollar amount goes, but very minor in comparison to your account size.
Let’s go a little deeper. Let’s say you have a $100 million dollar account size. You take a $1 million loss on a single trade. This is more money than a single person could make in their lifetime (this is not even their take home pay), and you’ve lost it in a single day. Does it hurt? In comparison to your account size… not at all. You still have $99 million at your dispoal.
This is why I say when you’re a great day trader you can’t lose. Because even when you lose you still come out on top. Let’s look at it in the other direction. Imagine having an account size of $200 million and you’ve made $4 million dollars on a single trade. You pull out $1 million from that trade. This is only 0.5% of your account size. This is what top surgeons make annually, but you’ve made that in one day. It probably only took a few hours (if that) to make.
