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.

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 is now $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 days.

On the 131^st trading day, we 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. 

But can it really be done you still ask?  One of our Tsunami TsuBot traders is making some significant progress towards this goal.   He started with an account size of less than $7,500 and in less than 2 months, grew his account to over $28,000, using only our software TsuBot - Your Automated Trading Assistant and this very simple 1, 2, 3 money management plan we taught him.  Will he be able to make it all the way to the million dollars a year trading summit?  Only time will tell.  He certainly has had a great start though in his own personal quest towards Making A Million Dollars a Year Trading! 

For a video explanation of this article you can go to:

How to Make a Million Dollars a Year Trading:    http://www.screencast.com/t/ZgUS9mVNS6H

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