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- how much capital do you really need to earn $1,000 per month
how much capital do you really need to earn $1,000 per month
Hi friends,
Today, I want to dive into a topic many of you have asked about: how much capital do you really need to earn $1,000 per month,
especially if you're starting with a small amount?
But before we get into that, please click the link below and check out today's sponsor.
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Now, a lot of my subscribers frequently ask me about managing risk in day trading.
Personally, I don't usually encourage day trading due to its risks.
However, since many of you are interested, I'll show you a way to potentially earn $1,000 per month with a small capital and a 50% win rate.
😎 Let's break it down:
If your win rate is 50%
Risk-to-reward (R:R) ratio is 1:3
Risk per trade: $85
Number of trades per month: 15
Assuming you win 7 trades and lose 8 trades, here's how it works out:
Losses: 8R (Risk units) = 8 x $85 = $680
Wins: 21R (Risk units) = 21 x $85 = $1,785
Net profit: $1,785 (wins) - $680 (losses) = $1,105
🦺 The safest method is usually to risk only 1% of your capital per trade.
If you follow this, you would need $8,500 to make a profit of $1,105.
🤫 But there’s another approach. You need only 15 times your risk amount as capital,
meaning you can afford to lose 15 times in a row before depleting your capital. This way, you would need just $1,275.
⚡️ Remember, this strategy involves high risk. I don't generally recommend such risky trading methods. My advice is to focus on swing trading with minimal risk. That’s the true path to financial freedom.
Happy trading, and stay safe out there!