Is it Reasonable to earn $150/day trading in the stock market on a $30,000 account?
★ SUMMARY ★
Do you think it is reasonable to make $150 per day on a $30,000 account?
First of all, you need to understand that the better approach is to look at your earnings in a monthly basis rather than a daily basis. The reason I say this is because stocks trade differently day to day.
At certain days, you will make a minimal amount of money; in other days, you might make a lot more. You will even have losses on certain days or weeks.
However, if you are profitable each month, this shows sustainability. Because even if you have losses in one week or a couple of days, you can make those back up, if you're looking at a month to month basis.
Most people look at earnings in terms of dollar value, the reason for this is because that’s how the world works; it is what we are aware of and how we use money in the real world.
However, it's bad to look at absolute dollar figures when it comes to growing your account and growing your investments. That is because investments work more on a percentage basis rather than the absolute dollar figure.
Yes, you get an absolute dollar figure on your return, but if you're making $100 on a $10 million account, that return is quite poor and pathetic. On the other hand, if you're making $100 on a $300 investment, you're really doing quite fantastic.
So when it comes to investing in the stock market, you want to start looking at thinking in terms of percentages and always try to improve your percentage of return.
If you want to make $150 a day and you trade 20 days a month, you're looking to make about $3,000.
Making $3,000 with a $30,000 portfolio means a 10% return on your money each month. That's a big reach when you're talking about percentage of return. Getting this kind of results is possible for professionals that trade exceptionally well. Unfortunately, if you're just getting started, more than likely, this is not something that's realistic.
When we come back down to earth, depending on your experience, getting a 2% to 5% return a month is more realistic. So if you make a 3% return, for example, on a $30,000 account, that's $900 per month.
That may not sound like a lot of money, but if you have an $800,000 account, and you make that same 3% return, that means you’ll be making $24,000 a month, which is fantastic. So the amount of money you can make really depends on your account size.
But don’t get discouraged. Learn how to trade well, focus on percentages, and worry about growing your account later.
Posted at: http://tradersfly.com/2016/11/150day-trading-on-30000-account/
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