How to make a million dollars a year trading 

www.Tsunami-Trade.com

Making a million dollars a year in trading is a Holy Grail for us all.  Although admittedly difficult to achieve, if we divide the task up into small achievable gains, perhaps a few of us will reach the goal.  Money management is the key.   What we mean by this is proper position sizing, which always knows how many contracts to trade with the very next trade.  There is a way to achieve your trading goals with the least amount of emotional distress and in a relatively short period of time.  We will divide the task into 3 steps.

1.       Analyze your current trading methodology and decide what a highly achievable profit goal on most trades is. 

2.       Make that per trade profit goal or twice that, your total daily profit target

3.       Use as much as possible Other People's Money, trading only 1 contract until you have attained at least 10x your daily profit target in bottom line account profits, then and only then can you trade another contract.

Let's see the power of reaching our daily profit goal each and every day.

As you can see, from this spread sheet, we started with a hypothetical $7,500 trading account and are trading to a daily profit target of 24 tics or $300 per contract per day.  We start trading 1 contract and when we have gained $3000 in account gains per contract (the account balance has now reached $10,500, up $3000 from the start of the account at $7,500), we increase our contract number by 1.  By the time we work our way up to trading even only 2 contracts, we are making consistently $600 a day which is the equivalent of an annual salary of $144,000 a year. That is certainly more than enough to improve on anyone's quality of life!  What if we took this daily 24 tic gain, or $300 per contract, and kept bringing it home day in and day out?  Just make a boring 24 tics a day and increase trading size by 1 contract for every $3000 per contract gained.   If we were able to master this 24 tic daily goal consistently, we would be increasing our trading size 1 contract every 10 trading day

You're doing great!  As you increase the number of contracts you are trading, making a boring 24 tics a day is getting far less boring now!  We have only been at our business plan for 40 trading days so far and we are making the equivalent of a yearly salary of $288,000 already!

If you kept your nose to the grindstone and made your trading goal each and every day, on the 131^st trading day you would be at 14 contracts and be making over 1 million dollars a year trading!   Can this really be done?  Certainly it is possible as math does not lie.  However losing days and losing periods are not factored into this spreadsheet which is inevitable with all trading systems.  However hopefully, this has given you some food for thought as you formulate your own trading business plan or use ours in your own quest towards the goal of Making A Million Dollars a Year Trading!

In our next elert, we will examine a real money trading account of one of our traders which demonstrates the realistic nature and true power of this business plan.