"How Much Money Can You Really Make With Trading?"
That's what we're going to talk about today.
Welcome to Coffee with Markus!
Back in Austin. And yes, I have my favorite cup.
I have these colorful cups. You might have seen it. I have them in different colors.
I just noticed this one has a chip.
So I got to toss this.
You won't see this again.
Wow!
Busy few days.
Absolutely!
First of all, I just got back from Phoenix where we did our stock trading bootcamps.
260 people attended our free stock trading boodcamps!
If you joined us, if you were there, thank you so much for coming out.
It was great talking to all of you.
And now we are already getting ready for the next round that we will have in Orlando.
Now out of the 260 people there were also I believe around 60 or 70 people who said -
you know what I want to take it to the next level.
And they are joining us for a 3 day bootcamp, or for a three day live trading event -
that we have coming up here in a couple of weeks in Phoenix.
Anyhow, what else is going on?
I just got ready for laminating a few things.
Yes I have a laminator.
So here's what's happening.
My personal life, tonight, at my son Julius's high school -
They have a showcase where they are -
showing all the extracurricular activities.
And as you know my son he's 14 years old. He's an avid sailor.
And he's trying to recruit other kids to join him at the sailing team.
So he did actually a website lthssailing.com.
And he did these little sign up sheets, where he says -
Visit our web site lthssailing.com if you want to check it out.
If you have a teenage kid in our school district.
Sign them up. Anyhow, I laminated a few things for him.
We're going to bring it over later.
Alright!
Now we're going to talk about how much money can you make with trading.
See right before I did this Coffee with Markus, I had a call.
I talked to a longtime customer, almost friend.
We have known each other - I looked it up I think since 2011.
So it's Claire from Florida. And she said Markus! -
I would like to know realistically how much money can I expect when trading.
Now Claire pre-phrased this question my saying, I know that with trading there's always risk involved.
Absolutely! Right?
And she said I know, I understand that I might lose money.
But if things go right, how much can I expect?
So, I was actually planning to use my handy dandy iPod pro.
But I couldn't figure out how to quickly get it to the screen.
So I think we'll go back to pen and paper. So based on my experience.
Whether you're trading stocks, options, or futures.
It doesn't really matter.
Realistically, you can expect around 60%.
Per year.
60% per year, are realistic expectations.
Now let's break this down.
This means approximately 5% per month.
Right?
Because we have 12 months in a year.
You get the idea.
I promise I'll try to connect this iPad pro, because then it will be a little bit prettier.
So 5% per month.
Now let's think about it, when you have a $10,000 account.
Right?
If you could make, let's say, 1% per week.
So let's write this down.
So, let's say you start with a $10.000 account.
And your goal is to make 1% per week.
That translates into - I'm going to show you the paper here in a moment.
$100 per week.
Now let me ask you. Do you believe that this is a realistic goal -
of making a $100 a week on a $10,000 account?
Because if you could do this, you would make 52% per year.
So we are almost at our 60% per year.
Now you might say, a $100 a week on a $10,000 account?!
Are you kidding me?!
I want to make a $1000 a week!
But you see this is why many traders are having unrealistic expectations.
You see, I'm pretty tall.
You might not see right now, since I'm sitting, but I am 6'6 tall.
When I was in high school, my PE teacher, my athletics coach said,
I want you to practice for high jump.
OK.
Why not?
So he set the bar 2 feet high and said, here jump over this bar.
And I looked at the bar.
I said 2 feet high?
I can walk over this bar.
I don't have to jump over it, and they all said no, no, no....
Jump over it.
And then we practice.
And here's how we practice. We raised the bar 2 inches at a time.
And suddenly, the bar was no longer 2 feet high.
It was 3 feet high, 3 and a half feet, 4 feet, 4 and a half feet, and suddenly -
I couldn't jump over the bar anymore.
Now here's what most traders do. Most traders set the bar 8 feet high.
And then they wonder why they can jump over the bar.
I want you to focus on a goal of a $100 per week on a $10,000 dollar account.
If you want to go crazy, do it on a $5000 account, but prove to yourself that you can make money.
Set the bar so low that it is easy for you to walk over it.
Most trainers fail because they're setting the bar too high.
They're overambitious and they are greedy. And this never works in trading.
Because if you could make a $100 a week on a $10,000 account -
you would make 52% per year.
Now with money management, you can take it to the next level.
Money management means that as you are making more money you're increasing your position size.
And doing it in a clever way -
You could turn a $10,000 into $41,400 within a year.
We've got to talk about this in another Coffee with MarKus.
Because I want to make sure that you get the main message.
Because the key question is, how much money can you make with trading?
Realistically, around 60% per year.
Now, admittedly, there are traders earning more.
You know what I recently - I'm just looking around here -
because recently, I get all this stuff in the mail.
And I'm just doing this randomly.
You get the same mail right?
Where they tell you that you can make, I don't know -
2000% a year or something like this.
But that's not the point!
Of course every now and then, you might hit the jackpot -
and make a lot of money in a year.
But realistically, again 60% and you will do just fine.
So if you have a $100,000 account,
it means that you could easily make $60,000 a year.
And let's face it, for most, this would already help you to supplement your retirement.
Now if you have a larger account, for example like $500,000 account.
With $500,000 account, if you would make 60% per year.
It's $300,000 dollars!
Now how do you get to that point?
You start small, and you grow big.
This is where you use clever money management.
And we will talk about money management,
in another Coffee with Markus.
Alright!
Hope that helps.
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"Share" it with a friend who needs to know this.
And I will talk to you very soon.