How realistic is it to earn a primary income from trading the way you do?
Anonymous Staff asked
For example, in a hypothetical scenario where I invest $20,000 per month, would it be possible that I could earn $2,000 a month, which is roughly my cost of living.
Grant Staff answered
It is extremely difficult to consistently make the same amount of income each month from stock investing.
When the market is going well, you can earn huge gains consistently. When the market is going down, it will usually be harder to achieve the same kinds of gains, but it is possible to still make good returns.
From my experience, it’s been reasonable with my method to invest $20K and sell at a 5% gain two times in a month and make $2000. This is much easier in a strong market. But remember that some months you’ll make a killing, but during other months you could make nothing or even lose some in a worse-case scenario.
I’ve personally made zero and even had negative unrealized gains in some months. Everyone does, even Warren Buffett. The important thing is that you stick to a sound method and always caution on the safe side. Plus you should be patient and remember that you don’t actually gain or lose money until you sell your stock.
I recommend that you buy the best company you can at the best price. By doing this, your wins will outnumber your losses, and you will be building wealth.
When starting out, your account seems to grow slowly at first, then suddenly you’ll be amazed at how much your wealth has grown if you stick to a good strategy.
As your capital grows, remember to be safe, keep some aside as cash, try not to invest everything in one company, and as your funds get larger, you can start investing in more companies.
Hope this info is helpful.
-Grant