QUESTION: I want to make $6,000 per month trading!
This is the toughest of all answers to answer, in my humble opinion, but I will give it a try for you.
If your average win is $400 on 3, and your average loss is $200 on 4, and you breakeven on 3 trades out ever 10 trades, then you can work up a W/L Ratio and a Profit Ratio or Profit Factor.
($400 * 3) * .3 = $360
($200 * 4) * .4 = $320
($0 * 3) * .3 = $0
Nets $40 per every 10 trades, but you have to take your commission costs out at $6 each * 10 trades equals (NEGATIVE $20) LOSS.
So here is a case where you are net positive but still losing because of the cost of commission to trade ... there is only one way to trade to make money.
You have to have a trading method/system that has the ability to capture the big wins, and also cuts the losers off quickly.
So for instance, if you find that you are net positive $250 on every 10 trades, then you can start to calculate a return based upon that information.
If you take 10 trades per week and net $250 per contract per week roughly speaking you would make around $1000 per month on one contract.
You would need to be able to trade 6 contracts and have a minimum account balance above $30,000 USD to take on this kind of risk.
I hope this helps ... the way I teach is to take money from the market at regular intervals and pay yourself as you make milestones.
If you can follow trading instructions, and are teachable, then perhaps I might be able to help.
David
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