Is it really possible to make an extra $1000 per month trading stocks? I mean come on anything is possible? That is not the way you should be asking the question.
The real question is how can you make $1000 trading stocks in a single month?
A month has about 20 trading days, that’s $50 a day.
An extra $1000 in your pocket can go a long way to paying down debt, saving money, growing a trading account, or just about anything else you can think of that a person would want extra cash for.
The reality is that it is not as straightforward as it sounds. Sure every single trading day there are opportunities to buy/sell or short/cover stock positions (I am talking stock trades, not options, not futures, not crypto) that could make anyone hundred, thousands, if not hundreds of thousands.
Those bigger numbers are probably reserved for outlier days and very large accounts with some very experienced traders working for a trading firm.
However, for the individual trader out of his or her home, yes it is doable. You can go from $1000 per month to $1000 per week, to $1000 per day (on average). Yes, you can have winning trades and you will have losing trades.
You could have the same number of winning trades as losing trades and still make money.
How?
Well, you make more money on the trades when you win, than the amount of money you lose on your losing trades (overall).
If your average winning trade is $100, and your average losing trade is $50, and you place as much as you lose and still make money.
Say you placed 40 trades in a month, if you win as much as you lost, you would have 20 winning trades and 20 losing trades. Still with us?
So if you averaged $100 on your winning trades, you would make $2000 (not counting commissions/fees). That’s 20 trades x $100 per trade.
If you averaged $50 on your losing trades, you would lose $1000 (not counting commissions/fees). That’s 20 trades x $50 per trade.
So $2000 – $1000 = $1000 (gross) profits in the month, on 40 trades, using the idea that you are only making money on 50% of your trades.
You could even have more losing trades if you reduced the $50 average loss to $30 for example.
I won’t go into any more math, but the reality is, you should know this basic stuff because it can back you into figuring out what your max loss is on a day or a particular trade, and went to lock in some of your winnings and let the rest of the trade ride out on your winning trades.
If you are in a trade with a profit of $100 then it grows to $200, you could sell enough shares to lock in the $100 profit, the remaining shares you could stop out breakeven or just above for a small gain, and still hit your goal for the trade. Or scale out more as the trade continues to go in your favor.
So figure out where you want to start. You could start with one trade a day, or one trade a week. It depends on your capital. But the Alpha Membership courses will teach you everything you need to know to start trading.
It can help lay the foundation for the rest of your trading career, so I encourage you to check it out.
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- Make trading into a career
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