I'm trading full-time and looking to make a 6-figure income. That translates to needing to make roughly $2k a week from trading. What's the best way to drop this "need to make $2k a week" wager mindset and focus on setups? Thanks.
First, what do you mean "focus on setups?" What is a "setup?" I have a suspicion it has something to do with trade entries, which is the last thing in the list of things you need to be looking at to try to do what you want to do.
Secondly, "six-figure income" representing what percentage on your stake, annually?
Next, I assume that "2k/week," is what you need to take out per week from the account, not what you plan to make trading per week, each and every week. I assume there is some modicum of reality in what you want to do. In other words, you would like to take out $100,000 / year in trading capital.
First, you don;t take out a fixed dollar amount on fixed intervals. The game is difficult enough, and this only makes the slope steeper. (Having to make X dollar in a fixed time period steepens the slope to the breaking point already). You take out a percentage, not a fixed dollar amount, and that percentage each year better to be less than the three year average or you won't be able to sustain yourself. So if your three year average annual return is 21%/year, then you can look to take out 20% year (because you will have losing years. Yes, you will, unless you're involved in private lending, which it doesn't sound like you are, you will).
So if you have a stake of 500,000 and you make 21%/yr, you could take out 20% of the stake each year. Put that in a separate account, divide by 52 and take that amount out of that account each week for your living expenses. Accommodate your lifestyle to live within this amount or go drive an Uber at nights to make ends meet.
