Lesson Learned #093: North Star Reality Check - $100/Day Requires $50K+ Capital
Date: January 7, 2026
Severity: HIGH
Category: Strategy, Capital Management
CEO Questions Answered
1. Are we following Phil Town Rule #1?
NO - We have Phil Town content in RAG (58 files) but we're NOT using it for trade decisions.
2. Why no North Star goal met today?
- Current capital: $30 (live account)
- No trades executed - we're in ACCUMULATION phase
- Cannot trade CSPs with < $500 capital
3. Can $200 + $10/day reach $100/day?
NO - The math doesn't work:
- $100/day from $200 = 50% daily returns = IMPOSSIBLE
- $100/day requires $50,000+ capital (0.2% daily return)
4. What top traders do in 2026
- 0DTE iron condors (63-67% win rate)
- Wheel strategy (30-45 DTE, delta -0.30)
- Enter after 1 PM ET for max theta decay
- Position size 10% max buying power
Capital Milestones (MANDATORY)
| Date | Capital | Daily Target | Strategy |
|---|---|---|---|
| Jan 20, 2026 | $200 | $0 | Accumulation only |
| Feb 19, 2026 | $500 | $1.50 | FIRST CSP (F/SOFI) |
| Mar 24, 2026 | $1,000 | $3 | CSPs on INTC, BAC |
| Jun 24, 2026 | $5,000 | $15 | Quality stocks |
| Future | $50,000+ | $100 | NORTH STAR ACHIEVABLE |
Most Critical Action Step
Continue daily $10 deposits until $500 (Feb 19, 2026) for first CSP trade.
Do NOT force trades with insufficient capital - that violates Phil Town Rule #1.
System Status (Jan 7, 2026)
- GitHub Pages: Working (HTTP 200)
- ChromaDB: Not installed (sandbox limitation)
- Vertex AI: SSL blocked (sandbox limitation)
- Local JSON backup: Working
- Test files: 53
Tags
north_star, capital_management, phil_town, reality_check, compounding
This lesson was auto-published from our AI Trading repository.
More lessons: rag_knowledge/lessons_learned
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