|Remove||Item||Quantity × Price|
|Your cart is empty|
In life we often hear or see these quick money ideas, like earn $10k in a day sitting at home. However by my experience, over all these years, there is nothing as free lunches. There is sheer struggle and persistence involved in all of these success stories. I am here to share my experience with you all today as to how I have achieved my share of success in trading.
"If you want to make money, you have to study money, you have to practice it just like anything you want to be good at" - Me!
I started 5 years back, with an aim to make it big in the trading scenario. However, as with any other newbie, I too had my share of struggles and mishaps in the early few years. I lost a mammoth $10k over all these years. However when the universe is on your side, you find a way through all your mishaps and struggles. These hiccups acted as a learning curve, which helped me further polish my strategy, and it took me a period of 5 long tedious years. It is but the struggle of those years where I stand today- Confident of earning $1k per day.
My motto is pretty simple- KISS (Keep It Short and Simple)
There are many mottos - Buy Low, Sell High, Buy the hype, Sell the News, etc. When I started on this journey, I took too much on my plate, which made it difficult to handle. The experience has taught me to not be greedy with every trade but rather go steady. I learned that if I could make a $1,000 each day, or even 10% of the money I invested, I could hit my financial goals.
People always ask, "how much capital do you invest each time?" I allocate a sum of $10k-$15K to capture a 7%-10% return. However, as we all know, financial markets do not run on scientific laws and can change abruptly without further notice. As a result to be on safe side, I keep a stop price (stop loss) at 2% of the amount I have invested. This not only allows me to take risk for higher profits, but also caps the maximum loss I would have to bear.
The Math Is Simple!
For example- Let’s say (X Stock) trades at $10 at the beginning of the day. While reaching the afternoon power hour the price drops to $8. If the stock still shows an upward momentum, I will enter with an investment of $10k at $8 a share. I then sets my stop loss at about $7.84 (2% loss if it hits here). By the end of the day the stock may close around $9 or higher. I will liquidate my trade by the end of the day, so I can secure the gains I've earned, without taking any more risk. (BWT, I would have made $1,250 in this scenario).
However by reading my article you would be thinking I would be earning $1k every day. But just as with any venture this too has structural good and bad days. And most of the time it is because of my own mistakes. I would get greedy and didn’t know when to stop and cash in my gains. However, every passing day teaches you a lesson, and so have I started to be conservative in my approach. I try to be conservative and save myself from losses, so that I reach my daily goals.
I would again like to iterate my lessons I have learnt for half a decade. Stock trading as any other life path will have its up and downs. One day you will be languishing at the bottom and the other day you will be celebrating like you won the lottery. However you should treat both in the same manner. I recognize myself with these beautiful lines of Rudyard Kipling from his poem IF-
“If you can meet with triumph and disaster And treat those 2 imposters just the same Yours is the Earth and everything that’s in it, And- which is more- you’ll be a Man, my son!”