When it comes to trading, the biggest question is, “how much money I can make”, right?
So how much money do you think you can make with day trading? $500, $1000, $5000 a month?
Well all of those, you can absolutely achieve.
However, there are lots of factors involved that can affect your gains.
You need to take note that there’s a difference between much you can possibly make, versus how much should you realistically aim for.
And this is where a recent call I got comes in.
Claire, a long time customer, and friend of mine called me up and asked: “how much can I realistically make from day trading?”
Now based on my experience, regardless if youre trading stocks, options, or futures. A realistic number would be 60% per year.
So if you break that down, that’s approximately 5% per month.
Now before you raise your arms in protest saying “that’s too low”, hear me out first.
For example, if you have a $10,000 account, and if you make a gain of, let’s say just 1% per week, you make $100 per week. Now if you can keep that up for the entire year, you tend to make a 52% increase on your initial investment.
It doesn’t look that little anymore right?
Now the reason why I broke that down to you at a very realistic level is because, this is the reason why many traders lose money.
How you ask? “Unrealistic expectations”.
Don’t get me wrong, there is nothing wrong in setting high expectations. But the problem is, and especially with trading is that, the higher your expectation becomes, the more frustrated you are when you dont hit them.
And what usually happens is that you will try to tweak your strategy to reach the expectations you set.
But you see, if you already proved on a simulator that your system works, most of the time, it will give you gains. So technically, there’s no need for you to change it.
By setting the bar to realistic levels, you can easily reach goals.
Always remember that trading is not a sprint, it’s a marathon.
Don’t make the mistake most traders do by setting the bar way too high, and wonder why they cant hit the goals they set.
So if you have a $10,000 account, heed my advice and just focus on $100 per week.
Set the bar to realistic levels that it will be easy for you to reach it.
Now if $100 is too low for you, then adjust it a bit. But do not go overboard and be greedy with your gains.
Start small, and allow your account to slowly grow.
And if you add effective money management practices to that, you would be surprised how big your account has grown in just a year’s time.
Anyway, is a gain $100 per week a realistic number for you? If not, what number would you prefer going for?
I want to know what you think, so do leave a “Comment” below and let’s talk about it.
And if you found this article helpful, please give it a “Like” or “Share” it with a friend that needs to read this.
Have a great day, and I’ll talk to you next time.