Alright, did I get your attention? $1k in a month versus $20k (that’s $1k per day average). Well, developing into a consistent trader that has more winning trades than losing trades can make that possible.
I prefer being realistic about trading.
It’s hard, lots of people lose money, and many people make money. Many of those people give that money back and then some, and the cycle repeats.
The markets are an ocean of money where billions of dollars flow daily. As a trader, you just want your tiny cup to dip in and grab some of those dollars each day.
Making an extra $1k a month for a lot of people can mean a lot in changing their goals, their lives, how they save, spend, etc.
But do you want to make $1k per month on average and call it a day?
Eventually, you’ll get better, more efficient, place better trades, and have increased account growth. Some days will be more than a $50 average ($50 x 20 +/- trading days in a month = $1k a month).
That $1k month might start to look like $1250. Then $1500 and some months you manage to reach $2000.
But after about 12-18 months of consistency, you start seeing improvement, and efficiency, you’ve freed yourself from all the bad habits I will teach you how to avoid since you probably made them here and there anyway.
You start seeing $3k – $5k months.
You might even have your first five-figure month, and then you realize, you’re averaging $500 a day. Is a $1k average possible? It absolutely is. I’ve done it, and have grown to do it month in and month out. But it takes time.
Granted some months it feels like it is easier than others, and some months I take losses that keep me from that average.
How do I do it?
By not focusing on how much I make, or even making money every day.
I focus on waiting for the right setups, the right stock at the right top, with the right strategy applied. I then apply my trade plan to that trade with the proper risk/reward, entry size (always scaling in), and minimizing any chance that if I am wrong, I don’t stay wrong for too long.
And that’s how the compounding starts in growing accounts. I find it’s better to even pay attention to the account balance when the month is over.
What was the starting balance?
What’s the ending balance?
What were commissions/fees?
Ok got it, I made this much, moving on.
I wire some money out to my checking account, (hey I got bills too). The rest is left to grow and continue to be used as a tool to make more money.
Some people run a brick and mortar businesses where the value of their business is in the land, building, equipment, business strategies, products, trademarks, and so forth.
The value of a trader’s business (monetarily speaking) is simply represented by the capital in the trading account. Of course, the nuances are the tech and tools, the screens, the computer, the desk, etc., but our accounts and the money I use to trade with are the business resources that I use to generate my revenue and my trading profits.
So I don’t look at it as much differently than any other business would. Your typical business has money tied up in all the aforementioned things, we just happen to have our business all in cash in a brokerage account ready to go to work each day.
So getting to $1k a day isn’t about having a mindset of how much money you can average each day, each week, each month trading. It’s about having a mindset of focus, and of trading like a business, with the goal of being profitable, sure, but really running your business well.
That means minimizing risk and respecting your capital. Having a plan for every decision (aka trade) that you take, and knowing when to sit back and not trade at all.
That’s how you go from $1k per month to $1k per day. Patience, focus, and continual growth.
Keep improving, keep looking for ways to be a better trader, and grow your respect and knowledge about all things the stock market, and you too can achieve what few have.
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- Develop consistency
- Make trading into a career
- Succeed for the long term
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