How Much Money Can I Make Trading Stocks?
Answer: As much as you want!
This is one of the most popular questions people ask when they are trading stocks. The beauty of the stock market is that you can literally make as much money as you want. There is no ceiling or pay cap because the stock market is a true meritocracy, meaning each person can make as much money as they want and it is all based on their skill/talent. That said, the basic idea is that you want to improve your trading skills as much as possible.
In a prior post we covered this topic in-depth and want to shed more light on it in this article.
Step 1: Know Thyself
The amount of money you make is based 100% on your ability to improve yourself and learn new skills. You see, anyone can scan for stocks, or search for a popular list of growth stocks or value stocks, but very few can master the art of actually taking money out of the market.
Step 2: Take Inventory Of Your Strengths & Weaknesses
The first step is to take an honest look at yourself. Identify your strengths, weaknesses, and mental walls, blind spots, and biases. You see we all have strengths and weaknesses but most people do not know what they are. This is a key point to getting ahead on Wall Street. Once you know your strengths and weaknesses, then you can find an approach that works for you and avoid strategies that do not work for you. Meaning, if you are a good long-term investor and a bad short-term trader, then do not focus on short-term day-trading strategies. Instead, find an intermediate or longer-term approach that plays to your strengths. Getting ahead and overcoming some of the strong mental walls, personal blind spots, and mental biases are a great step needed to get ahead in life and in the market.
Step 3: Decide To Win & Respect Risk
It’s really important to make a conscious decision to win. You see, most people just wing it and they do not have a sound time-tested strategy to consistently take money out of the market. The best traders in the world, are very disciplined, they do not wing it, and they always know how much they are risking at any given time and what the potential reward will be. If you take nothing else from this article, learn that all trading boils down to the delicate balance of risk and reward. In order to make money on Wall Street you must risk something in order to make a potential reward. Regardless of your strategy, the best traders know that to win in the long-run you want to risk a little when you are wrong and win big when you are right. If you can do that over and over again, you will likely get way ahead over the long-run! Adam Sarhan, Founder of FindLeadingStocks.com, always likes to say, “Never argue with the market and always keep your losses small.” That’s a great way to think about how you navigate Wall Street.
How Much Money Can I Make Trading Stocks?
Knowledge is power. The stock market is nothing if not opportunity but in order to navigate its waters you must arm yourself with information. Sign up for Alpha Alerts and get four premium stock picks every month. Take the guess work out of investing and allow us to do the heavy lifting. We are so confident in our service we will let you try it FREE for 30 days!
Sign up now.Photo by Pepi Stojanovski on Unsplash
