Trading Goal: $100 a Day

Submitted by Stock Market News on 26 April, 2011 - 12:44

Is it profitable to trade and $100 a day?

Setting your expectations is one of the most important part in trading. Having low expectations is not exactly a bad thing especially if your preparing yourself for the stock market. All traders know that money will be inevitably lost so its not always good to have high expectations unless they are realistic. The stock market is unpredictable, so as a beginner its always better to start small with a capital that is manageable. What if you want to make a profit of $100 a day with a little financial outlay, then move on with your life to avoid all the financial stress? More importantly is this achievable? These are important aspects to consider before diving in.

Capital

Tax is an important consideration. $100 a day is $52,000 per year, after tax its $65,000. This means you need to earn $178 per day including weekends to cover it.

Returns

How much percentage do you expect to earn? If you trade and break even in your first year with $100 then you're doing well.

Time period

Earning $100 bucks is no easy feat, even though it sounds just about enough. You can't easily earn $100 in a day and then go outside instead of being cooped up in your room in front of the computer. In an uncertain market you need to work for a week or a month for $100. Some days your doing good but there will be days when everything is going bad. Unless your highly skilled or just plain lucky you can't just walk away even with a small expectation.

Money management

You can't gamble your money in the market or you will surely loss it. Make sure that you manage your capital well to earn your trading goal. There are a lot of questions when it comes to trading, unless you have firm expectations and consistent trading habits you won't earn your $100.

Education

Last but not the least, keep yourself informed. Even if you have low expectations, you can still earn past your trading goal as long as you are consistent.

No matter what your trading goal is, as long as you are a disciplined and committed you will get a return for your investment.

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