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SUMMARY:

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Should You Live Off Your Trading Profits or Let it Grow?

It depends. Why?

It depends on your goals and current account balance.

If your goal is to leave your work and trade full time, it is likely you will have to build up your account to a significant size to live off from.

If your goal is to create a retirement nest egg, you will also likely need to let it build over time without ever touching it.

I believe this video will also give many viewers the clarity they need and not be sucked into some false dream a seminar presenter sells to them and think they can replace their income after their training is over.

Many may not have heard of the 90/90/90 rule. Which simply states that 90% of traders lose 90% of their trading account within 90 days. This is a very sad but true statistic. I hope I can help you avoid becoming part of this statistic.

However, for someone who is lucky enough with a $250,000 account, to achieve $50,000 means they ‘only’ have to achieve a 20% return on their capital. Although still a tough ask, it is a much more achievable and realistic aim this time.

Here I also want to explain the Rule of 72. Some people may have heard of this rule, but for those who haven’t, it simply helps you calculate the time it takes to double your investment if you achieve a specific return.

Say you achieve a 20% p.a return. If you take 72 divided 20, it means it will take about 3.5 years to double your money to $20,000.

So while you begin your investing and trading journey, find other ways to supplement your income if you begin with a small account.

By doing so, you not only relieve the pressure of needing to achieve unrealistic returns to fund your lifestyle but you also become a much better investor and trader since you now focus on the process and not the results, which is income to live on.

Growing your investment and trading account takes time. Nobody said it was easy which is why most people think it is impossible.

However, by taking your time, doing so without the added pressure of needing the profits to fund your life style, focusing on the process of becoming the best investor you can be over time and just letting compound interest take affect, your account will surely grow into significant size to then achieve decent achievable returns you can then live off.

This is what I did, beginning from scratch and so can you.

Become the tortoise that wins the race.

I truly hope this video helps you in your quest to become the trader and investor you want to be.

Get Terry’s 10 step stock checklist and video lessons for free: http://www.thefreedomtrader.com