Monday, September 25th, 2017

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Could you gain 100%/year swing trading ranges and short-term up-trends in the stock market USING NO LEVERAGE?


Okay, so you have £5,000 in risk capital and are looking to gain 100% overall this year. You are willing to risk it all in able to achieve your goal, or end result this year.

So, you decide that you are going to:

1.) Play short-term up trends taking advantage of strong fundamental news such as internal catalysts at companies that are releasing new products, (think how Apple, Incs iPhone & iPad have made their stock go up 400% these past 2 years), or good earnings reports, (think of how the booming Amazon.com christmas sales returned investors 32% in stock returns in Q1. 2010, following the release of a better than expected earnings report that surprised Wall Street).

2.) Trade strongly ranging stocks from support to resistance levels, think Royal bank of Scotland which has kept on going from, like, 50p/share to 60p/share for months now in an accumulation period up and down between these prices.

If you could find 1 of these short-term stock up-trends every month that earn you on average of 5% to 10% per month and/or trade ranging stocks that gain you similar, more or less, 10% to 15% amounts every 2 months, investing your money as such, probably all in idividual trades, could you score 100% return by the end of year 1 and end up with £10,000, and could this be done by using absolutely NO LEVERAGE such as the use of CFD’s or something? Would it be possible and could you pull it off?

Related Reading:

Swing and Day Trading: Evolution of a Trader (Wiley Trading)Swing and Day Trading: Evolution of a Trader (Wiley Trading)


3 Responses to “Could you gain 100%/year swing trading ranges and short-term up-trends in the stock market USING NO LEVERAGE?”
  1. MVD34 says:


    The short answer? The marketplace only looks that clear in 20/20 hindsight. If you think it looks that obvious in the near future, you are going to loose your shirt.

    Try this math: Get out a spreadsheet and figure out how long it takes you to get from £5,000 to Millionaire at 20% a year. And, then Billionaire at 100% a year. If you are bright & intuitive, the numbers should shock you…at least the difference between millionaire and billionaire with £5,000 to start should.

    100% per year isn’t reasonable. 20% per year, year after year is extremely difficult.

    As to your specific question about leverage, I can only tell you what the investment world knows for a fact: Doubling your money without leverage in less than 5 years is rare; less than 3 years, extremely rare; 1 year, a once in a lifetime-ish deal.

  2. b2fnow says:

    This question is asked every day here by someone with an idea; a dream without a cause, without a clue. Here is just one other example just today. All you have to do is test your idea on a simulator instead of asking silly questions. The question isn’t as easy as you state it; the markets are all about opportunity. Opportunity is everywhere. The question is not only can you learn enough to do it, or stay long enough to do it, but can YOU do it at all, regardless of the method or idea. That’s the part we can’t answer for you.


    How many books have you read? Do you have a trading plan? Have you tested that trading plan for several months? It’s a long process just to find out. Worse, many people can make money on a simulator, but fail with real money. You have to test your plan, not your simulator skills.

    Like all beginners chasing money, you give no indication that you’ve learned anything. Like all beginners you focus on profits that you have no way to know how they will materialize or come to you any more than a pot of gold. And you extrapolate these mythical profits into some kind of annualized fortune cookie. You’re a dreamer, not a doer, and you’ll tire easily when you find out how much work and resources and time it takes, how stressful it is, how hard it is, how endless the learning becomes to be a trader. It may take several years of hard work just to find out if you’re cut out for it, but you won’t last that long.

  3. Skeptical says:

    Yes, it is absolutely possible to double your money in one year, up to a point, eventually the law of diminishing returns catches up to you. Doubling $10,000 or $100,000 in a year isn’t that difficult, but doubling $10,000,000 gets to be quite a bit trickier.

    While it’s true that using leverage can make it considerably easier, even without using leverage, it can be done. Just because MVD34 doesn’t have the skill to do it, doesn’t mean it can’t be done.

    Of course your plan wouldn’t work. Most of the big moves that you describe occur interday, not intraday, meaning that they occur between the time the market closes, and when it opens. So if you’re not holding the stock before the news comes out, you’re gonna miss the gains. Buying a stock after a large gap up is a hit or miss proposition, sometimes it will continue to climb, and sometimes it will give a large percentage of that gain back. In order to catch those large up moves you have to expose yourself to potentially large losses. If the news turns out to not be what you or the market had anticipated, you’re in for an unavoidable loss. And sometimes the news is good, but everyone had already bought in, in anticipation of it, and they’re just waiting to sell on the news. Trying to play large jumps in share price is a risky proposition, and not a good way to double your money.

    To double your money in a year it takes small consistent gains, not intermittent large ones. To double $5000 in a year you simply have to make .3% per market day, that’s point 3 percent, not three percent. On $5000 that’s $15 dollars. That’s all. You don’t have to take big risks. If you buy 500 shares of a $10 stock, it only has to go up 4 cents to cover your commission, and get you your $15 gain. You just have to have a plan that works consistently, and the ability to execute that plan. Poor execution will ruin a good plan every time. Most daytraders go broke not because of a lousy plan, but because of lousy execution.

    So think small, and consistent. Like the tortoise and the hare, small and consistent wins the race.

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