On another (closed) forum I’m a member of we’re engaged in a fierce debate (ok, there seems to only be a few of us left… lol) about what happened to the other 40+ members of the original courses that we went on. Where did everyone go?
I believe that in undertaking any new venture it’s extremely important to have realistic expectations and to understand that learning a new skill requires time, effort and patience…
I’m sure a lot of people are prepared to fork out huge sums on training and courses because they fully expect to make it back almost immediately. Unfortunately, unless they’re extremely fortunate in their initial trading I think it will take most people a while to get themselves to a point where they’re making consistent profits week in week out. As far as trading for a living goes? Well, I’ll come back to that…
So there’s a bit of conflict here. Companies need to sell courses so are prepared to put a rose tinted glow on what they’re offering. Hence many fall at the first hurdle when cash doesn’t magically fall into their lap…
Now, again if you’re starting with a small account and you can pull this off you are already a superstar. Give yourself a pat on the back and keep going. Don’t get cocky and pay very close attention to risk management. I think you realistically need a trading account over £5K to achieve this with minimal risk but that’s just my opinion.
Target 3. What are your daily living costs? Take the amount you actually spend in a month and divide it by 30 days. So for me this is £83 per day (holy crap!)
Work on increasing your account size to be able to use leverage to achieve this modest goal. Yes, a 42 point rise at £2 per point will cover it. Don’t try to place a trade on everything under the sun!
Minimize risk to reduce stress and don’t trade with your last £200 in the bank because you will trade like a scared monkey brain. If this means you have to wait a bit then bloody wait!
Target 4. What is target 4 for you?
Do you want to trade full time? How much money in your account do you need to do this while generating a positive equity curve? What size ‘buffer’ do you need to trade comfortably and live without financial stress? Is this the point at which you are going to give up your job? Is this something you’d never consider? Do you need to?