Making Money Trading Stocks? Do These 3 Things!
If you belong to the elite group of traders who have finally gotten to the consistent profitability area, where we abandon stress and start to trust our system and see results, then I would like to say congratulations to you!
Trading profitably is like seeing an athlete and saying, I wish I was in shape like them, then hitting the gym and changing your diet. Following that same analogy, most traders say I want to be like that athlete but run to the couch with a bag of chips AND a tub of ice cream.
Once you start making filthy money, here are three things you should consider doing:
Put away 50% of your trading profits into a deposit account on a monthly basis. Set it up as a savings account without the ability to withdraw the money unless you have a debit card and have to go into the branch. Then, burn that debit card!
Even after you close a winning trade, the balance is not a “realized” balance, as it remains risk capital in your trading account. The only way to take the money and separate it from your trading activity, is to separate it physically. This will build a lot of confidence in yourself and relieve the pressure of having to trade every single day for your welfare. Having some savings will accumulate wealth and help you through a rainy day, cause trust me, even the most seasoned traders run into rainy days… weeks… heck, even months!
Save, save and save. Buying a lamborghini and posting it on Facebook is how fools are parted with their money.
Okay, now that you have so much cash you are burying it in the ground like Pablo Escobar, what do you do? Invest it! That’s right, you heard me right, I just advocated investing for the longer term. Most investors will never be traders and passionately hate the thought of it. Most successful traders however, will definitely have to be investors.
Once you hit a few hundred thousand dollars, you do not need much more than that to earn a very comfortable living. At this point, it is time to invest wisely. Purchase property, look for a franchise business, invest in your son/grandson’s lemonade stand start up – do whatever the heck you want. Just make sure you are diversifying and spreading the investing capital around – NEVER dump everything into one investment, because if it sours so does your living standard. In fact, if you love an investment that much, that is the more reason to invest less in it – emotions are never a good judge of value.
3. Give Back
We all came in this world and will leave it with the same amount of money, none. There are many studies out there that estimate incomes above $70,000 USD annually actually produce less satisfaction for each incremental dollar. That means that if you make more than $70,000 USD and aren’t happy – there is a HUGE issue somewhere outside of your finances, and a billion dollars will not make you much happier than you are today.
Maybe you are not living free, according to your values or are trying to consume your way to satisfaction. Guess what the best feeling in the world is? Empowering and helping someone meet their goals and being better off for themselves.
Giving back is the whole point of life – and it doesn’t have to be money, it will mostly be knowledge and your time. (The quicker someone asks for your money the more likely it is to be for their gain solely). Give back as much as you can, because in the end what is it all worth anyways? Nothing. This was the catalyst to starting TRADEPRO Academy for me, to give back and help other people become successful traders.
There is a small known fact out there in the trading world, the more successful you become the more lonely and cold it can start to feel. So when you actually start making money trading stocks, it would really help your psychology if you thought about what you will do once you have it all – because when you do, it will feel like a much bigger problem than before you had it to begin with. It is a problem I wish you get a chance to have soon.
Good health and good trading!
Join our live trading room as part of our day trader pro package – more info here >
Find out how to trade options in a passive way with trade ideas and analysis – more info here on our options pro package >