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Trading for Income: How Much can I Make?

Trading for Income
Written by Andy

Wealthy people don’t just end up wealthy – they develop a strategy and stick to it. We encourage you to design your own wealth creating share / stock trading strategy.

We teach you about the stock market, including buying and selling shares and how to make money in both rising and falling share markets.

If you look at the table below you will see how much additional money you can make simply by increasing the percentage return from a modest 5% to 10% or even 15%.

Can we teach you to make these types of returns? Committing to start a financial strategy is the first step in wealth creation. The second step is to find a way to maximise your returns.

Compounding Returns

As you know, these days there seems to be too many people and companies making ridiculous claims about creating wealth. Here are some refreshing answers to some common questions.

What is this all about?

The objective of trading shares (or any financial instrument for that matter) is to produce above average returns on your money. Trading is very different to investing in shares, so forget anything you know about investing as it is probably irrelevant.

To trade shares you need a strategy. This strategy is otherwise referred to as a trading system. A trading system is a set of rules used to define your actions given any circumstance that might arise.

Trading successfully is all about removing emotion and following such a proven strategy that will force you to profit. The moment you involve emotion or gut feel in your trading, you will probably lose money.

How much can I make?

Depends how much time you want to devote to trading, just like everything else in life, you will get out what you put in. Don’t get us wrong, these results are not from people that started trading last week. These are our more experienced traders who choose to adopt a trading style that generates fantastic returns but has more risk associated with it.

As a trader you can almost generate any return you like, provided you are willing to accept the consequences. Many amateurs don’t understand this point, they see large returns and think they are unrealistic. The price you pay for return is draw down. Draw down is experienced when you have a temporary dip in your trading equity (account balance). A low return trading system will have a low draw down, a high return system will have high draw down.

You can literally design a system that will produce a 150% return per annum, but this system might have draw downs of 50% on equity. A system that produces a 20% return per annum may only have a maximum draw down of 10% on equity.

Different people will design systems to achieve different results. That is what we encourage as there is no such thing as one size fits all.

About the author

Andy

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Trade the markets with Pepperstone! Pepperstone offer tight spreads on thousands of markets. You can trade on cTrader, MT4, MT5 and via Trading View. Trade responsibly: Your money is at risk. 75.8% of retail investor accounts lose money when trading CFDs and spread bets with this provider.