Lesson Learned #094: North Star $100/day Reality Check
Date: January 7, 2026
Severity: CRITICAL
Category: Strategy, Capital Management, Math
The Math Problem
Current state:
- Live capital: $30
- Daily target: $100
- Required return: 333% daily = IMPOSSIBLE
Paper trading Jan 6:
- P/L: +$83.34
- Target: $100
- Gap: $16.66 (missed by 16.66%)
Phil Town Rule #1 Compliance
What We DO Right
- Cash Secured Puts on quality stocks
- Stop-losses on positions
- Paper testing before live
What We DON'T Do (Phil Town Requires)
- 4Ms Analysis (Meaning, Moat, Management, Margin of Safety)
- 10-10 Rule (10-year track record, 50% discount)
- We're premium-selling, not Phil Town buy-and-hold
Realistic Path to $100/day
From data/system_state.json compounding milestones:
| Day | Date | Capital | Daily Target | Strategy |
|---|---|---|---|---|
| 23 | Jan 29, 2026 | $200 | $5/day | First trade - Single CSP |
| 49 | Feb 24, 2026 | $500 | $15/day | 2 CSPs or Iron Condor |
| 77 | Mar 24, 2026 | $1,000 | $30/day | Wheel strategy |
| 113 | Apr 29, 2026 | $2,000 | $60/day | Multiple wheels |
| 169 | Jun 24, 2026 | $5,000 | $100/day | Full Phil Town |
Compounding Power (Evidence)
- Deposits only: $2,637
- With 2% daily compounding: $5,089
- Advantage: +93% more capital
Top Trader Strategies for Small Accounts (2026 Research)
- Credit Spreads - Defined risk, can start with $100
- Poor Man's Covered Call - 20-30% of covered call capital
- Iron Condors - At $500+ capital
- 50/25 Delta Rule - Sell 50 Delta, buy 25 Delta
- Take profits at 50% - We have this
- Cut losses at 100% - We have 200%
Key Lesson
$100/day is NOT achievable with $30 capital.
Must follow the compounding milestones. No shortcuts.
Tags
north_star, compounding, capital_management, phil_town, reality_check, math
This lesson was auto-published from our AI Trading repository.
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