Sunday, February 20, 2011

How I plan to go from $1500 to over the PDT...

Initially I had planned to start back trading at the end of February 2011 with $2,000.00. However, due to unanticipated expenses, I will start instead with only $1,500.00. This means that I will not be able to trade on margin right off the bat. However, this does not really bother me as I do not think it will take me more than a month to rise above this hurdle.

After the initial $1,500.00 addition to my account at the end of February I will then add an additional $900.00 at the end of April then May and so on and so on. Where the real growth will come from, however, is the compounding from my trading activities during each month. I believe that my system will grow my equity at the start of each month by at least 20% at the end of each month.

The table below shows the breakdown by month and what my equity should grow to at the end of December 2011 if I can manage a compounded monthly return of 20% on average.


End of Month:
Savings (added  at  end of each month)
Equity (compounded at 20% per month)
February
$1500
$1500
March
$900
$2700
April
$900
$4140
May
$900
$5868
June
$900
$7941
July
$900
$10429
August
$900
$13414
September
$900
$16997
October
$900
$21296
November
$900
$26455
December
$900
$32646


So if all goes as planned, my equity should grow to $30,000+ and well above the dreaded PDT minimum. Although I do not plan to quit my full time job at that point I will be way closer to becoming a full time trader than I am now!

Hope find this plan useful.

Good luck with your own trading goals for 2011!!!

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