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Suppose you earn $ 8 6 , 0 0 0 per year working at your corporate job. You've come up with a very profitable day
Suppose you earn $ per year working at your corporate job. You've come up with a very profitable day trading strategy that will beat the market by approximately per year without incurring any additional risk. The strategy requires you to quit your job to trade. The typical holding period in your strategy is trading days, so you'll have a daily portfolio turnover of Your strategy will incur roundtrip transaction and tax costs of approximately basis points. How large of a trading portfolio would you need to justify quiting your job and becoming a fulltime day trader? Assume trading days per year. Give your answer to the nearest dollar.
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