A user whoâd been back testing a trading strategy contacted me today. He was very distraught because his strategy only produced $1,200 a month with 3 YM contracts. Thatâs $400 per month on one set of rules.
Strange thing about money and percentages and the perception of realityâ¦â¦
Greed
Letâs just look at the so called puny results described at making $400.00 per month.
Say you told someone who wanted to start a fully stocked computer store business after he told you he only had $5,000.
You might laugh at him. You might say, âare you nuts. No one can start a business for only $5,000.â
On the other hand look at a very conservative person who keeps his money in a bank. My bank right now is paying .75% on deposited funds. So that $5,000. in my bank would pay our investor $3.13 per month. And the investor would not start screaming at his bank.
So what is $400.00 per month worth? Let me ask you. How much would you like to replace your recent bad trading experiences, all the winning and losing trades with just $400.00 for each month that you traded?
Also, there is no law that says an investor is not allowed to commit about $15,000 to trading this plan and take out about $1,200.00 per month. That pays many peopleâs rent or mortgage.
So perhaps the view that $400.00 per month is not a good return on an investment might come from one having a too greedy and unrealistic assumption of what trading is all about? Perhaps that person still expects some kind of magic beanstalk formula that bring untold riches without any risk?
Just a thought.
Alex L. Wasilewski
Co-Founder & Head Trader
Trades That Work
http://www.puretick.com
Strange thing about money and percentages and the perception of realityâ¦â¦
Greed
Letâs just look at the so called puny results described at making $400.00 per month.
Say you told someone who wanted to start a fully stocked computer store business after he told you he only had $5,000.
You might laugh at him. You might say, âare you nuts. No one can start a business for only $5,000.â
On the other hand look at a very conservative person who keeps his money in a bank. My bank right now is paying .75% on deposited funds. So that $5,000. in my bank would pay our investor $3.13 per month. And the investor would not start screaming at his bank.
So what is $400.00 per month worth? Let me ask you. How much would you like to replace your recent bad trading experiences, all the winning and losing trades with just $400.00 for each month that you traded?
Also, there is no law that says an investor is not allowed to commit about $15,000 to trading this plan and take out about $1,200.00 per month. That pays many peopleâs rent or mortgage.
So perhaps the view that $400.00 per month is not a good return on an investment might come from one having a too greedy and unrealistic assumption of what trading is all about? Perhaps that person still expects some kind of magic beanstalk formula that bring untold riches without any risk?
Just a thought.
Alex L. Wasilewski
Co-Founder & Head Trader
Trades That Work
http://www.puretick.com
Seriously though, if that were really money being played forward, sign me up, I'll take it. 400 on 5000 per month? i'm yours.