Is It Really Possible? Trading For A Living?
Is Trading for a living achievable for the average investor?
Is it really possible to trade for a living? What exactly is trading for a living anyway? Firstly we need to answer the second question to answer the first. Let’s cover that now.
So what exactly is trading for a living for you? How much money do you need to make a living?
Some people can live off $2000 per month where as some people need $10,000 and up per month to pay their mortgage and cover all their bills. Making enough money for a living should cover all your bills and give you enough money to buy the things you need, and possible want.
Let’s say for example that to make a living from trading we need 5K per month. This pays the bills and gives you enough money to spend on the things you like. It might be more or less for you but for examples sake let’s say 5K.
So there are roughly 20 trading days in a month, give or take a few. To make our required 5K we will need to make approx. $250 per day on average. Does that seem so difficult? No. The problem with people who take up trading is they can’t see the forest through the trees. They are greedy, fearful and can’t seem to see the big picture. One losing day or week and they go change their whole trading strategy, and never seem to stick at anything long enough to actually make money.
For those of you who have traded I am sure you can relate to this. I am sure some of you reading this are actually trading for a living right now. Let’s break it down another step. Let’s say we are trading the futures market and focusing on the S+P 500 E-mini. One tick is $12.50, one point is $50. If we are trading 1 contract that means we need 20 ticks per day. Now let’s say for argument sake we are trading 2 contracts or even 4 that is only 10 ticks per day on average or 5 ticks respectively. A very achievable target indeed.
Now I am not saying that this will happen every day. But if we can look at it on an average basis and look to take a small amount of money from the market each day, you will be well on your way to making the money you need to trade for a living.
Unfortunately for most they don’t set daily/weekly and monthly targets for themselves. They don’t know what they need to live off. They have no plan. Just a trading system (hopefully) that they trade and never make it due to their lack of goals. If you set goals, break it down to a realistic expectation, making enough money to trade for a living is not that far away.
Primero Trading takes you one step closer to this goal by offering several automated trading strategies that can take the emotional work out of your trading plan. Trading does not have to be difficult. Trading is certainly not easy, as with any financial decision we will carry some emotional attachement. However, with automation we can look at our trading as above with much more certainty, and we can certainly trade for a living whatever that is for you. Visit our products page and results page for more information and browse through our other posts for more information. www.primerotrading.com