Hey all. just opening some discussion in regards to making 5% per trade on $5,000.
It is something that I have been thinking about and after a gentle 'light bulb' moment from a post on HC I thought that I'd give it a nudge with paper trading.

The below is just my 'ponderings' and in no way should be deemed advice. It is purely for discussion and thought.

I'll put that post up here. Thanks mudguts (hope you dont mind.) Change the 'days' to 'trades' and see how it goes.

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"Good point.. BTW would be more than a millionaire if you invested say $5,000 as you starting point.

Do the calculation on a 5% return per day, with income reinvested..it truly is staggering..

Doubled your money in 15 days
10 times your money in 49 days
100 times your money in 96 days
A millionaire by day 110
10 million by day 156
100 million by day 203

Now how do we find that 5% return per day..can't be that hard..surely

easier option..buy more PEN

M"

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OK, so following on from that post I started papertrading for the last couple of days and have done four trades. Those being. (apologises as I didn't include brokerage in my workings. But you can get the drift)
Trade 1.
Jan 31
Buy 180,000 GLFOB @ 2.3 cents = $4,140 Target price to sell 2.5
Sell 180,000 GLFOB @ 2.5 cents = $4,500

Trade 2.
Jan 31
Buy 49,450 SSNO @ 9.1 cents = $4,500 Target price to sell 9.6
Feb 1
Sell 49,450 SSNO @ 11 cents = $5,439 (I was lucky as it gapped up on open)

Trade 3
Buy 12,086 KDR @ 45 cents = $5,439 Target price to sell 47.5 cents
Sell 12,086 KDR @ 47.5 cents =$ 5,740

Trade 4
Buy 5,035 MHM @ $1.14 = $5,740 target price $1.20
This trade is still 'live'

So, in 3 days I have returned $1,600 at a rate of 38%. I accept that I haven't included the brokerage but the numbers, if including brokerage, would be at about 33.8%.

With the MHM trade I was seriously considering 'selling" out at $1.12 taking the loss and buying ESI

Now, there are truckloads of shares that you can do the trades with. For example finding a share and buying at 10 cents and then selling at 10.5 will give that 5% or buying say ESI at 2.1 cents and selling at 2.2 cents will give just under 5%. If you look at the trades today on ESI I think that that would be possible. When I was watching that one early in the day there were very few, ie maybe 40,000, to buy at 2.1 yet that got hit at the close and so tomorrow or the next day I am convinced that it will go to 2.2.

I have a number of companies that I am watching and they easily do 5% movement in a day. However, of those some I would not touch, i.e PEN because the depth to sell from 10.5 to 11 cents is to great for the trade to work, but, the PENOA's or OC's have less depth but are still governed by the heads and therefore subject to the 5% movement.

Anyways, those are my Wednesday night thoughts and would be keen to hear anyone elses views.