Trading Consultants Inc Discusses Possible Trading Outcomes.
Trading Consultants Inc has been trading professionally since 2013. Prior to that we “demo” traded for nearly two years. and that continues today and for as long as we trade we will demo trade.
Our mentor advised that we should have three years income in the bank prior to beginning our professional career. “I still hear his advice draw a monthly salary. After a three years of trading you should have doubled your base and be ready to trade for your daily bread. Never force a daily gain. Only take what is given based on your trading plan .
I will share a very important piece of wisdom that is often overlooked. Of the 5 possible outcomes for any trade four of them are totally acceptable daily results.
- Big win defined as an amount equal to 1-2% of your trading capital
- Moderate to small win defined as a single dollar to 1% of your trading capital
- Breakeven non event
- Small loss defined as …from a single dollar to 1% of your trading capital
- Big loss defined as any amount bigger than 1.5 % of your trading capital
Once you understand supply demand trading and a few basic candle patterns honestly it’s rather easy to make a very wonderful living . I am not talking about Ferrari and Million dollar mansions here. I am talking about being able to home school your children and participate in their lives daily as you provide their needs and teach them to moderate their wants. Teach them the value of saving and work.
Few actual hours are required After about two years of study if you trade our process you can expect ” In our case we take about 4 hours once a month 2 hours once a week and about 1 hour daily 20 days of trading 32 hrs monthly and life can be lived freely and without concern if you can master the two demons of all traders fear and greed.
Our clients understand that we do not monitor as we have defined risk with the trades that we open. We can validate a 80% win rate so we can validate that 80% of our trades are in the 4 acceptable results. and we do not have single trade losses that are bigger than 1.5% It takes discipline but as the song says How do you know when the risk is right? We make a lot of money and we sleep at night.
Fear and greed occur when you are trading in sizes that would allow you to create the only outcome you must always avoid. I find for our process trading with 20% of my capital used for margin works well. each of you will have different levels. But I tell you this margin used unwisely will kill your account. So slow and steady will win the race. 20 % annual increase for 20 years will make you a comfortable retirement and clients will find you to help them .
Over the 20 years you would earn about 3.8 million dollars pay taxes of 25% about 1.0 million pay your self modestly 50K annually for a drawdown of another 1.0 million so lets say you begin at 35 by 55 you have lived free but modestly working about 32 hours monthly. You have about 1.8 million left on which you can earn about 20% or 360K yearly by now you are offshore and paying minimal taxes perhaps even living abroad pay tax and the rest is yours to send your children to school or stake a business.
I tell you now free and clear is a wonderful way to live.Most will defer and never enjoy freedom that trading can provide. Grow a business and you have employees and a myriad of responsibilities. Trading you need a few computers and displays Maybe a few journals and that’s it. Your CPA has time to structure your income in a preferrable manner and then you can be one of those men or women who always seem to be tanned and stress free.