How to make a million dollars a year trading 

www.Tsunami-Trade.com

As the old adage goes, start with 2 million right?  No, seriously we believe that wise money management is the determining factor to all trading strategies, and what ultimately will determine a successful trader from a consistent loser. Many a trader has fallen to the wayside, trying to make a million dollars in one trade, when they would probably be better off making small steady gains and working their way up the wealth ladder.  It's the old story of the Turtle vs. the Hare and unfortunately, in trading Futures, due to the high leverage, "the Hares" are the ones who blow out their accounts while the slow and steady "Turtles" often will be the ones who are around long enough to win the day.

Another reason why successful long term trading can be so difficult to achieve is the emotions wrapped up in the money we trade.  If we are in our minds, equating the money on the next trade with our own money, the rent money, the kids' tuition, our mortgage, we are on a certain freight train to trading failure.   If it's money you can't afford to lose, its money you simply can't afford to trade.  If we attach our emotions to the money at risk, we are much more likely to commit trading errors which is as bad a malady as having a bad system to follow. 

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 is always knowing 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.

In our next elert, we will give you a specific example of how one decides your own per trade profit goal and will go through this simple 1, 2, 3 step by step process towards the goal of Making a Million Dollars a Year Trading!