Can you claim that you can earn $500 per day in profit from your trading? In fact, how many traders do you know that can teach you a way to earn $500 a day every day?
I dare say not many, because if you do the math, $500 a day equals $10,000 a month. Professional traders earn much more than this, while the private trader who lives from trading earns around this figure per month.
Actually, it is not difficult to make such constant profits. You will have to work hard to achieve such results, of course. Here are the steps you need to follow in order to make such a sum.
Step 1
Have a good money management plan. This is the crucial step, without it you can forget about making a profit. A good money management plan consists of rules to guide leverage and margin, stop loss, profit targets, and position size.
Profit targets are something that many traders seem to have forgotten about. In my classes I come across testimonials from students asking why they don’t let their profits run and trying to cut their losses. My answer is this, “we’re not making a wild west here, allowing any control to slip out of your hands shows a serious lack of professionalism and foresight.”
Not exactly a mild rebuke, but the idea of allowing a runaway profit is not good financial planning. The reason for this is answered in step 2. But before you get there, remember to focus on a good money management plan. There are many resources on this but try to get as much information as possible as this is the cornerstone of your trading.
Step 2
In your quest to earn $500 a day in trading, your attention needs to be on your mind. You need to attract the money to you. You need to want to take advantage and you need to control all emotions. How this works is that you use your brain before and after the operation. During the exchange you turn it off. You use your heart before and after your trading day. During the trading day, you detach your emotions.
Now this is a difficult step to master. For money management it is easier because there are tangible elements, but for psychology everything is within you. Psychology is concerned with discipline, emotional detachment, and the ability to handle profit and loss.
In answer to the money management question, when you let profits flow and don’t set profit goals, you set yourself up to be too emotionally invested in trading. How many of you can say stop when you see your business making more and more money? The reality is that most will just stick with the trade and then become like merry schoolchildren after the trade is over.
When that happens, you have “programmed” your mind to behave this way. So when you start losing money, you will also become very attached to your trade. So what happens is that you refuse to get out of the operation. You change your stop loss position, eventually running out of money, and then being forced to end the trade. You may think this will never happen to you, but after 20 years of trading and teaching, I can tell you for sure that 100% of traders who don’t have a money management plan always face this crisis.
Last step
A well-crafted business plan. This is where most traders feel quite comfortable. Unfortunately, there are many half-baked business plans on the market. A good business plan is one that covers 4 core areas. One intraday trade, one daily trade, one weekly trade, and one monthly trade. There is too much information to write about here, the blog provides much more information for you, so please stop by and check it out.
How to earn $500 per day in trading is to follow the 3 steps above. Just make sure you know it’s not easy. It will take time and effort to be able to reach that number per day. Just think that if you need 6 years of education to be an architect, you consider yourself lucky if you take a year to learn how to trade properly and profitably.