Over the past year I’ve heard lots of people talk about the importance of setting goals. I have to admit, my goal was always just profit. My downfall was I wanted more profit with any ensuing loss. More loss, need more profit. Unfortunately it doesn’t work that way. Every now and then I would get lucky but still its no way to make a consistent living. I started to figure out some daily goals and came across something I never really thought of before. If I make for example, $200 a day trading, that adds up to $47,200 a year. $500 a day adds up to $118,000! Thats based on 251 working days in a year (not including holidays) and 3 weeks vacation! I quit my day job last year in retail to start day trading, I made good money for retail, around $38,000 a year. Comparing those numbers I started to get serious about setting goals. Sure $200 doesn’t seem like a lot, and there are days I can make much more, but over the course of a year, that really starts to add up! I get to work from home, be my own boss, and there are days when I hit my goal and stop working whenever I want to. Its the life I have always dreamed of.
I can’t say that it doesn’t come without a lot of stress and anxiety, but overall I have been much happier since I’ve become serious with hitting my goals and stopping for the day. Over trading has led me to more losses than gains. When you go to set up your daily goals, here’s some things to think about.
- How much do you need to survive on a monthly or weekly basis? For me I looked at what I use to make at my previous full time job where my income was for the most part paying the bills. It’s easy for me to say, yea I want to make 118k a year, of course everyone would want that! That day will come!
- Taxes! Take into consideration you will have to pay taxes on that money. Don’t ask me, you’ll have to figure that out on your own. I did an approximate estimate for myself.
- How much do you have to trade with? This can determine your daily goals if you don’t have enough money to day trade. I’ve heard info on a trading platform called Cy group that actually might let you get around the PDT restrictions. $5,000 will get you 100k in trading capital. I don’t know much more than that, but if you’re starting small, that might be something to look in to! I haven’t used it so I can’t speak for it.
- What is your skill level? When I first started, I was throwing darts at a wall. Even as my skill level has increased I still find it hard to consistently hit good numbers.
I decided to start out with a very conservative goal of $200 a day. If I happen to make more then great! It’s a little bonus that helps build my account. After a few months I might raise it a little bit. Overall I’m happy when I hit $200, I sit back and relax for a bit and work on other things. I research plays for the next day. I go to the beach. I enjoy life! Of course you will be missing opportunities, but you won’t care because at the end of the day you made money! No one can take that away from you. Keep it up and you will have a very profitable year.