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Trading is exciting! When you trade you look forward to Monday and you can feel bored over the weekend, unlike most jobs, trading is one of those business where you are self employed, and in control of your actions. To take trading up trading for living is a tricky question. You may be thinking is it really possible to make living with trading? And the answer is – YES. But before you get started it is important for you to understand your size of trading. Think and discuss over this with your family and friends to plan the right volume of trading. One can always think of huge amount but, it is very important to analyze – “How much?” before taking the initiative. Since, it is difficult to estimate this hence; we take an example to explain it.
Let us assume you need Rupees 300000 per annum to maintain a decent living for you and your family. Then the next question would be – ‘Can you make this sum with trading?’ - It does not sound practical. So, we break it down – Rupees 25000 per month. Now we have to plan in a manner to make this amount in a month i.e. 25days since we are excluding the Sundays. What you need is smarts and strategies.
Always start small and set a weekly target to be achieved with one contract. When day trading futures, options, or forex, you can use leverage and trade multiple contracts on a rather small account. If you are thinking about trading the futures market, then you can easily find a broker who will enable you to trade one contract of almost any futures instrument that is our there – such as e-mini S&P, e-mini Russell, currency futures, interest rates, commodities, etc.
You have to maintain this goal every week and you can easily earn the targeted amount after getting ten contracts per week. Your broker may agree to let you trade ten contracts but, if you find it difficult then you have change your strategy a little bit. The key element to trading success is having a sound trading strategy, and it must be one that works effectively in a variety of markets. You will spectacularly increase your chances of success in trading if you’re able to trade in multiple markets. Many of you may misunderstand the multiple markets with different currencies – No. It means observing two stock index markets, few currency markets, foreign index market and commodities market and the interest rates.
However, you also need to check on the profits, in order to achieve the weekly goals. Your ideal win must be above average of wins per trade, which means average win should be at least 50 per cent higher than your average loss, preferably even twice as high.
We all know that trading involves losses and you cannot avoid it. However, there’s a huge difference between losing big on a regular basis and losing small in a controlled trading plan.
You have to very choosy and picky with the market. As, when it comes to trading, being choosy is a very smart move because haste can spoil you plan. Don’t take the first trade you see just because it looks decent and do not get tempted by the temporary change. Analyze your possibilities and make sure that it fits all of your entry conditions and parameters. With this it would be even possible for you to boost your winning percentage to 65%. Yes. It can be done.
And so we conclude by saying that - Plan your trades and trade your plan and enjoy a successful trading to make money.
Going back to our example in the beginning – target of making 300000 per annum with monthly 25000, then you had to achieve ten contracts per week and ofcourse this illustration can be applied to various amounts. If you do not have trading account that lets you trade the amount of contracts that is targeted by you, then now is the perfect time to start building it. Remember, be patient with your trading, be smart, slow, and steady. Trading success doesn’t happen overnight, but with the right strategies and structure, you can achieve profitable results in a much shorter time period than you may have thought possible.
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