Whats a good monthly income from trading?
Page 1 of 734 123 ... LastLast
Results 1 to 10 of 332

Thread: Whats a good monthly income from trading?

  1. #1
    I'm conscious that I will get variety of different answers based on the each individual particular circumstance

    for someone who's got a family of 4 to feed v single person, someone who lives in an expensive city, place v someone who lives in a place where living costs are comparatively cheap.

    But I was interested in where stage, in the practice of developing your account and keeping your DD comparatively low do you stop at particular lot? 5K, 10K, 20K or 50K and over? Point where where it will become difficult to close your position at the same price? Likely that is likely to be the answer to get some?

    I had been calculating some amounts, and as the acc grew I raised my lot dimensions while still maintaining the DD at 10 percent, at a certain stage I had been at 10K per month but then I desired 20K when I attained 20K I desired 50K, 100K and 1mil greed has no bounds at least for me within my mind I don't know what I would do if I'm actually in that circumstance, but then again I'd love to stop at some stage to decrease the additional strain of managing big $ and maintain my consistent income each month. Which one are you?

  2. #2
    Quote Originally Posted by ;
    If you think in terms of monthly income, then that means you would like to keep trading for infinite numbers of years (or until retirement) regardless of all of the risk inherent in trading. For me, I wish to quit trading when I can spend my trading profit into real estate or something which can make for me even when I sleep. This way, when I walk away from trading, I'd know I'd still be receiving a monthly income even if I opt to bum out.
    I've yet met a person who utilizes forex as an additional means of revenue. Nevertheless producing what one would make from a 9-5 would be a fantastic beginning.

  3. #3
    Think of the basic meals on the table, cover the charge and rent level first. When you reach there, trade at the level for a long enough time that it's secure and you become completely familiar and comfortable with. The next stage will come naturally to you. It is no use to think about it now.

  4. #4
    Hi Piquant,
    I think you've hit the nail on the mind by knowing it is such a personal question and guided by the individual's own mind and needs (both material and ego).

    Therefore, I can only answer for myself. For me, the absolute account dimensions and trade position size is of no real significance, what matters more is that the risk being assumed. It's the risk which results in the worry, not the money rolling in! And the risk is a part of both% of account risked per trade along with the drawdown the account is likely to endure under your method. I am quite risk averse so I keep the per trade risk to 1% of the account along with drawdown to under 10%. I could treble my earnings by simply risking 3% per trade ( 30 percent drawdown), but the additional risk is too much pressure for me, therefore I do not. For many others, that is a laughably modest risk. To each his (or her) own, I guess.

    In pure income terms, I trade my own account for a living, therefore I want to consistently earn a minimum sum to pay for living expenses. I'm not willing to increase the supposed risk so that the only way I could earn more would be to increase my account size or get better . Sadly, I can not rely upon the latter so my income is fundamentally a part of my account dimensions, my personal capitalisation. I simply did the maths backward, working out just how large an account I'd want to generate the money returns I desired on the risk I was prepared to assume. I then saved up that amount and began trading with it.

    This stage is important: too small an account dimensions makes getting a living amount in any kind of secure and risk acceptable way almost impossible. I think too many men and women dream far too large for their available resources. Be realistic and you'll probably be happier and more successful in your trading.

  5. #5
    Quote Originally Posted by ;
    I'm aware that I will get assortment of different responses depending on the each individuals unique circumstance for somebody who's got a family of 4 to feed v individual person, somebody who lives in a costly city, place v somebody who lives at a place where living costs are comparatively cheap. But I was more interested in where point, in the practice of developing your account and keeping your DD comparatively low do you quit in particular lot? 5K, 10K, 20K or 50K and above? Point where where it will become tough to close your position in the same price? ...
    I've heard some traders do not recommend trading for a mean to cover to month bills, as it puts a lot of negative strain on your own side and makes you lose focus on the essential things. I believe that it will be best maintain compunding until you no longer have to be worried about making X gains on X time period.

  6. #6
    Quote Originally Posted by ;
    quote I have heard some traders do not recommend trading for a mean to cover to month bills, as it puts a lot of negative strain on your own side and which makes you eliminate focus on the important things. I think it would be best keep compunding till you no more have to be worried about earning X profits on X time period.
    This is very correct. Not many traders can make monthly income. They might be profitable, but particularly in the event that you hold your transactions for a longer time period, it could take weeks or even years to realize profits. All to say, I agree. No target is your best target in my expertise. Take exactly what the market gives you.

  7. #7
    Quote Originally Posted by ;
    Calculate your average monthly needs and curb your greed. Greed had no boundaries, unless you bound them. I presently live from the world most expensive countries, but that doesn't mean I have to be rich or to earn a lot of money. Regardless how rich you are, what ever goes into your stomach fill those what you require, those things that doesn't fill anything are only luxuries
    How long did it take for one to average 10 k each month?

    Are you a scalper?

    Kind regards,

    Goose

  8. #8
    Quote Originally Posted by ;
    quote This is very correct. Not many traders can make consistent monthly earnings from trading. They might be profitable, but especially if you hold your trades for a longer period of time, it might take months or even years to attain gains. All that to say, I agree. No target is the ideal target in my expertise. Take what the market provides you.
    I think this applies more to swing/positional traders and for people trade more TFs 12h and daily. With that type of approach I absolutely agree with you on not using a set amount to hit since we will not ever guess it directly, we take what we can get.

    But I am focused on day trading and scalping an index, the method that I've devised usually requires me to maintain the place for anywhere between 1 - 2hours and I really do have a set number daily to strike, not accurate 50 or even 60pips but I maintain the range within my own mind. I guess your expectation will fluctuate based on your method and how you trade.

  9. #9
    Quote Originally Posted by ;
    what matters more is that the risk being assumed. It's the risk which causes the stress, not the money rolling in!
    Could not have said it better, you obviously get this to keep yourself with a constant revenue month in and month out. I know for some men and women who's got jobs and trading part time risking a little high is fun and enjoyable but when you are doing it full time having bills to pay I presume its a whole another monster. I can only imagine the distress it will cause if you began taking risk that you can't afford in the title of more profit.

    You mention that you keep your risk per transaction 1% which means that your daily DD is kept at 1% and max DD in 10% based on your method/system expectancy exactly what are the chances of devoting say 5 losses in a row? And just how many consecutive losses would set you in max DD 10%? What is the egy in the event that you reach 10%? During the process of calculating the DD and risk per transaction I'm comfortable with odds of consecutive winners happening in a certain sequence of trades came up, and I think this expectancy ought to be calculated along with your very best guess just to take care not to over leverage trade the account to max DD.

  10. #10
    Quote Originally Posted by ;
    quote How long can it take for one to average 10 k per month? Are you a scalper? Kind regards, Goose
    I don't average 10k per month, not certain where you receive this info. Yes, I am a scalper however do hold trades for weeks also. For Equities, I hold for Ages.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
This website uses cookies
We use cookies to store session information to facilitate remembering your login information, to allow you to save website preferences, to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners.